Van Hollen Criticizes Bush Administration's Rule to Cut Medicare Hospice Reimbursement

Statement

Van Hollen Criticizes Bush Administration's Rule to Cut Medicare Hospice Reimbursement

Rep. Chris Van Hollen (D-MD) released the following statement in response to the Centers for Medicaid and Medicare Services (CMS) announcement today that it will cut Medicare hospice reimbursement rates for hospice and urged it to quickly reverse course. The cuts would affect hospice providers by phasing out the current budget neutrality factor in the hospice wage index. This move could force hospice providers to scale back services or cease operations. The final rule, published in The Federal Register, is effective October 1, 2008.

"I am deeply concerned about the impact CMS' regulation will have on hospice providers and their ability to provide comprehensive, high quality end-of-life services to our nation's most vulnerable population - Medicare beneficiaries nearing the end of life, and their families. Hospice providers will see a $2.18 billion reduction over five years when this regulation goes into effect.

"I am also troubled by the timing of the rule. The Medicare Payment Advisory Commission (MedPAC) and CMS are only just beginning to examine hospice payment issues in an effort to gain a better understanding of hospice reimbursement. To implement this seemingly arbitrary reduction is therefore premature and shortsighted.

"I initiated a letter in April 2008, signed by 49 House Members, to Health and Human Services Secretary Mike Leavitt urging him to reconsider issuing this rule that phases out the current budget neutrality factor in the hospice wage index. That letter was ignored as the Administration has moved forward and issued this misguided regulation. The Administration should immediately repeal this regulation before irreparable harm is done to hospice and the communities they serve.

"As our nation faces the continuing challenges of meeting the health care needs of an aging population, now is not the time to cut back on reimbursement for hospice services, which is cost effective and saves Medicare money. I will be investigating possible congressional action over the coming weeks to protect the Medicare reimbursement and ensure access to hospice services for the patients and families who need it."

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