Final Report: Value of Hospice in Medicare

The National Association for Home Care & Hospice (NAHC) and the National Hospice and Palliative Care Organization (NHPCO) commissioned NORC at the University of Chicago (NORC) to assess the value of hospice to the Medicare program and to beneficiaries, their families, and caregivers.

Background and project goals: Increases in Medicare’s hospice benefit enrollment (16.5 percent) and spending (31 percent) from 2015 to 2019 have garnered policymaker attention to hospice and led the Medicare Payment Advisory Commission (MedPAC) to recommend that FY 2023 Medicare base payment rates for hospice remain at 2022 levels, and that the hospice aggregate cap should be wageadjusted and reduced by 20%. These recommendations amount to a decrease in hospice spending by $250 million–$750 million over one year (approximately 1-3 percent of Medicare hospice outlays) and $5 billion–$10 billion over five years.