From the Research
The daily payment rates for each level of hospice care are as follows: Routine Home Care has a two-tiered payment system with higher rates for the first 60 days (approximately $200-$210 per day) and lower rates thereafter (about $165-$170 per day), Continuous Home Care is paid at an hourly rate of approximately $60-$65 per hour, Inpatient Respite Care has a daily rate of approximately $450-$470, and General Inpatient Care has the highest daily rate at approximately $1,000-$1,050, as supported by the most recent evidence 1. The payment structure for hospice care is designed to cover all services related to the terminal illness, including medications, equipment, supplies, and interdisciplinary team visits.
- Routine Home Care is the most common level of hospice care and has a two-tiered payment system.
- Continuous Home Care is provided during brief periods of crisis and is paid at an hourly rate.
- Inpatient Respite Care provides temporary relief for caregivers and has a daily rate.
- General Inpatient Care is for managing symptoms that cannot be controlled at home and has the highest daily rate. These rates are subject to geographic wage index adjustments, meaning they vary by location across the United States, as noted in the study 2. The mix of services provided can differ depending on the location of care, with more nurse care provided at the beginning and end of the hospice episode, and intensity of aide care services higher in the middle portion of the hospice episode, as found in the study 1. The payment methodology for hospice care was revised in 2016 to better align with the U shape distribution of services, and it will be important to evaluate the impact of the new payment methodology on length of stay and mix of services by different providers across settings of care, as discussed in the study 1. The daily payment rates for each level of hospice care can vary based on the type of care provided and are adjusted annually by Medicare, as supported by the evidence 3, 4.