HOSPICE MEDICAID ALERT

HOSPICE MEDICAID ALERT

December 15, 2010

With the release of news about reductions to the Medicaid Hospice Benefit, we want you to better understand some important points.

Some important points to remember:

Hospice is not being “eliminated” only “reduced” to being available to those under 21. Last year less than 10 patients served were under 21. DHHS reports that 957 individuals over 21 will be impacted – our data from 2009 indicates the number to be approximately 1400 individuals.
DHHS’ actions are the first in what will more than likely be a series of actions to offset their current year budget deficit. The action to reduce hospice, podiatry, vision and dental saves the state only 9 million dollars out of a 228 million dollar deficit and costs the state 26 million in lost federal funds.
DHHS has acknowledged that reductions to hospice will result in costs to other Medicaid budget line items like hospital and nursing homes. We can and should question the rationale of this action if the goal is to reduce Medicaid expenses. Is this a good business decision?

Some general information to consider:

Be sure to acknowledge the challenges the hospice industry is currently facing which may impact our ability to absorb all of the required care as “free care”. While none of us want to say we will turn folks away, we do have to address the challenges we face with impending federal cuts, increased cost in doing business, etc.
In 2009 Medicaid accounted for almost 4% of the total days of hospice care in SC and over 5% of the total hospice patients served.
Medicaid as the payor for hospice care has decreased to 4% in 2009, 4.6% in 2008 and 5.6% in 2007. The point – we are not an expense that is increasing for DHHS.
A recent report from the Arizona Medicaid agency on the impact on their budget for the year they operated without a Hospice Medicaid benefit showed that Medicaid expenses increased over 4% WITHOUT the hospice benefit in place.