The National Alliance for Care at Home (the Alliance) issued the following statement today in response to the Centers for Medicare & Medicaid Services (CMS) Fiscal Year (FY) 2026 Hospice Wage Index proposed rule, which proposes payment and regulatory updates under the Medicare hospice benefit.
The proposed 2.4% payment update fails to adequately address the mounting financial pressures facing hospices nationwide. With escalating operational costs driven by inflation, workforce shortages, and rising expenses for supplies and services, the proposed payment increase would threaten the ability of hospices to sustainably provide quality end-of-life care.
“The proposed payment update for FY 2026 falls short of what is needed to sustain high-quality hospice care,” said Dr. Steven Landers, CEO of the Alliance. “Without meaningful adjustments, hospices across the country will face serious challenges—jeopardizing access to care for terminally ill patients and placing added strain on families already facing the unimaginable. CMS must act to protect this vital benefit and ensure that every American can receive compassionate, dignified care at the end of life.”
The Alliance is also concerned by CMS’ failure to acknowledge the need for additional information and clarifications needed for the Hospice Outcomes & Patient Evaluation (HOPE) data collection instrument, which is currently scheduled to begin October 2025. Hospices and vendors need adequate time to integrate and operationalize the complex requirements of the transition to HOPE to ensure a smooth transition—without compromising patient care.
At the same time, the Alliance appreciates CMS’s solicitation of stakeholder feedback to reduce provider burdens in alignment with the objectives outlined in Executive Order 14094, which seeks to reduce administrative complexity and streamline regulations to facilitate more efficient and effective patient care.
The Alliance will continue to evaluate the proposed rule and advocate for solutions that enable hospice providers to deliver exceptional care to patients and families who need it.
National Alliance for Care at Home Responds to the FY 2026 Hospice Proposed Rule
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