Medicare program; hospice wage index for fiscal year 2009. Final rule

Area of Science:

• Healthcare Policy
• Health Economics

Background:

• The Medicare hospice program relies on wage indexes to adjust payments.
• Budget neutrality adjustments have been a component of hospice payments.
• Clarity on geographic definitions and facility structures impacts payment calculations.

Purpose of the Study:

• To establish the hospice wage index for fiscal year 2009.
• To finalize the phase-out of the Medicare hospice budget neutrality adjustment factor.
• To clarify wage index issues related to geographic classifications and hospital structures.

Main Methods:

• Final rule publication outlining policy changes.
• Analysis of wage data for fiscal year 2009.
• Review of existing regulations regarding rural/urban definitions and hospital facilities.

Main Results:

• The hospice wage index for fiscal year 2009 is set.
• The Medicare hospice budget neutrality adjustment factor will be phased out.
• Clarifications are provided for defining rural and urban areas and for multi-campus hospital facilities.

Conclusions:

• The final rule updates hospice payment policies for fiscal year 2009.
• The phase-out of the budget neutrality factor aims to simplify payment calculations.
• Clarifications ensure consistent application of wage index policies across different provider types and locations.