Earlier Hospice Choice Could Save Medicare $1B+

BIRMINGHAM, Alabama—If all Medicare beneficiaries who enroll in hospice within eight weeks of death were to enter hospice just five days earlier, it could save Medicare more than $1 billion a year. 

That’s according to a report out this month by ATI Advisory that shows how small and clinically approved changes in hospice timing could both help patients and save money. 

The findings are relevant as Medicare spending on hospice services increases by nearly 10% annually and Medicare hospice enrollment is also growing, said the National Alliance for Care at Home, which commissioned the analysis jointly with the Research Institute for Home Care. 

“The implications of this study further underscore what the hospice community has long understood and recent research has revealed: Timely hospice care not only represents the preferred choice for patients and families, but also presents sound fiscal policy,” said Jennifer Sheets, CEO for the Alliance and president of the Institute. “The potential savings identified in this report are further evidence of the additional value hospice can add to the Medicare program while ensuring more compassionate, person-centered care is provided for Americans at the end of life.” 

While hospice’s overall cost-saving potential for Medicare has been studied over time, the study authors said the budget impact of earlier election wasn’t well known. ATI modelled the potential effect on Medicare spending if beneficiaries currently enrolling in the eight weeks before death were to choose hospice five days earlier. 

The data was drawn from studies conducted between 2002 and 2019 that estimated Medicare savings associated with hospice election in different periods of time before death.