NHPCO NewsLine Fall 2020 - 11

The FY 2021 Hospice Wage Index and Payment Update Final Rule was published in the Federal Register on
August 4, 2020 after posting as a public inspection document on July 31. NewsLine speaks with NHPCO's Vice
President, Regulatory and Compliance Judi Lund Person, MPH, CHC, to discuss some of the more significant
parts of the FY 2021 final rule.
NewsLine: What are some of the important things that providers will
find in the FY 2021 final rule?
Judi Lund Person: It is an annual rule, so one of the
first things we look for are the rates. In this rule, we
have the rate increase of 2.4% for FY 2021. Then
we have some other finance related issues this
year, notably, changes to how counties are
assigned their wage index. So some counties went
from urban to rural. Others went from rural to
urban and others were assigned new Core Based
Statistical Areas known as CBSA.
NL: That CBSA change doesn't happen every year does it?
JLP: It is not something that happens often. So, I want to make sure
that providers are aware and are watching to see what happened to
any of the counties that they serve. Here at NHPCO, we have gotten a
few questions about it already from providers who say, "my wage index
went down significantly." It is important to see the counties that you
serve, where they fall. There is an additional piece that providers need
to be aware of, there is a 5% maximum drop limit in counties that have
a drop in the FY 2021 wage index. If you are in that spot be prepared, in
FY 2022 expect there to be a much more significant drop than 5%.
NL: That's important to know. Isn't there a resource that NHPCO offers
members to help them with the state and county rates?
JLP: Right, there is. Every year we put together the State/County Rate
Charts for our members. This resource is an Excel spreadsheet with a
tab for every state. Every county in every state is listed with all the
hospice rates for FYI 2021, which begin on October 1, 2020.

NHPCO has seen
an increase in the
questions coming
in from
beneficiaries and
their families
about why didn't
the hospice cover
something.

NL: In addition to the CBSA changes, we also have something significant
regarding the Election Statement and Addendum. Can you give members
a bit of background?
JLP: Yes. In last year's rule, CMS began talking about the feedback they
were hearing from patients and their families, referral sources, and even
from the MACs. They were starting to hear complaints that hospice
didn't let patients and family caregivers know when certain things were
not going to be covered. I will also say that NHPCO has seen an increase
in the questions coming in from beneficiaries and their families about
why didn't the hospice cover something. For example, "why couldn't the

Newsline / Fall 2020

https://www.federalregister.gov/documents/2020/08/04/2020-16991/medicare-program-fy-2021-hospice-wage-index-and-payment-rate-update

NHPCO NewsLine Fall 2020

Table of Contents for the Digital Edition of NHPCO NewsLine Fall 2020