Save Our Hospices From Devastating CMS Cuts!

On April 28, 2008, The Centers for Medicare and Medicaid Services (CMS) acted on a provision in the Administration’s FY09 budget proposal that would cut hospice reimbursement rates by altering the wage index adjustment (phasing out the budget neutrality factor). CMS has stated publicly that the final rule on this provision is expected on August 1, 2008.

While this may seem like a regulatory adjustment that would make minor changes to hospices wage formula, the regulation would take more than $2.3 billion from a health care sector that has 3.4% margins, according to a recent MedPAC study. Once fully implemented, this regulation would cut reimbursement in some areas by more than 18%. Make no mistake, these cuts will force programs to decrease services or close their doors completely. For example, in Texas, hospice programs will be especially hard hit. In Houston/Harris County, full implementation will bring rate reductions of 6.89%. Dallas/Dallas County programs will see losses of 7.74%. More rural areas, such as Lampasas County and McLennan County, will see cuts of 13.11% and 7.5%, respectively.

Hospice programs all across America served more than 1.3 million patients and families last year, in the place they call their homes, and that number is expected to continue to rise as more terminally ill patients seek high quality, compassionate end-of-life care. Additionally, research shows that hospice is cost effective. An independent Duke University study in 2007 showed that patients receiving hospice care cost the Medicare program about $2,300 less than those that did not. This amounts to more than $2 billion of savings each year.

Each day, thousands of people enter hospice programs, along with their families. This signifies their decision to spend their last days, weeks or months in the place they call home, relatively free of pain and intrusive medical interventions. They are surrounded by their families, friends and spiritual counselors. They die with the comfort of knowing that the grief and bereavement needs of their loved ones will be taken care of once they are gone. This is a choice that is free of political, racial or gender limitations. More than 80% of Americans making this choice each year are Medicare beneficiaries and their families are counting on this service to remain intact for future generations. Interestingly, more than 98% of these families would recommend hospice for another loved one.

On behalf of the millions of Americans who benefit each year from compassionate end-of-life care and bereavement services, I respectfully ask that you to halt further action on this regulation. I sincerely hope that you will stand with me in supporting continued access for all Americans to hospice care.

From National Hospice and Palliative Care Organization (http://www.nhpco.org/)

Please contact our representatives to urge them to save our Hospice programs at http://www.grizrph.com/repcontact.htm. You are welcome to use this letter that the National Hospice and Palliative Care Organization has provided for us to send.

Thank you!