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Medicare agency raises payments for hospice, rehabilitation facilities in FY'20

The Centers for Medicare and Medicaid Services will increase Medicare payments in the fiscal year 2020 for hospice providers by $520 million, or 2.6%, according to a July 31 finalized rule.

The agency also set the aggregate cap amount for providers. The finalized payment rate is slightly below the $540 million, or 2.7%, increase CMS proposed in April.

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CMS caps aggregate Medicare payments per patient made to hospice providers annually. The fiscal year 2020 cap will be set at $29,964.78, which is equal to the fiscal-year 2019 rate plus the 2.6% 2020 payment increase, according to CMS.

Increase for inpatient rehab facilities

CMS will also increase Medicare payments in the fiscal year 2020 for inpatient rehabilitation facilities by a projected $210 million, or 2.5%, according to a separate July 31 finalized rule.

The finalized rule is higher than the $195 million, or 2.3%, increase CMS proposed in April.

Inpatient rehabilitation facilities are divided into two main classifications: individual rehabilitation hospitals and rehabilitation units within hospitals. Medicare payment rates fluctuate depending on whether the facility is in an urban or rural region of the country and if a facility is a for-profit or nonprofit business.

The overall rate increase will total 2.5%, but multiple facility types will see a higher pay increase, according to the finalized rule. Rural and urban units will see a rate increase of 5.7% and 5%, respectively. Rural hospitals will actually see a 2.1% payment decrease in 2020, and urban hospitals will see a modest .2% increase.