Private Insurers Take Charge of Medicare's Hospice Experiment

Medicare is testing a new approach to hospice care by allowing private insurers to run it, giving them more flexibility to reduce costs and expand access. The traditional hospice program has remained largely unchanged since its debut in 1983, and concerns about access, fraud, and costs have led to the federal pilot project. The experiment involves several thousand patients in its first year, but it is likely to eventually become national policy and reshape the hospice care available to roughly 30 million Americans. The pilot has already shown some insurers slashing payment rates by up to 12% and expanding eligibility criteria.