CMS Releases Final Ratebook and Actuarial Methodology for VBID Hospice Benefit

On Wednesday, April 15, 2020, the Centers for Medicare and Medicaid Services (CMS) released the final 2021 Hospice Capitation Ratebook and Actuarial Methodology. The Actuarial Methodology finalizes the 2021 capitation rate for the hospice benefit component of the Value-Based Insurance Design (VBID) model and includes technical adjustments based on stakeholder comments.

Launched in 2017, the Medicare Advantage (MA) model tests how the MA VBID program can be modified to improve care coordination and quality while reducing program expenditures. This model allows plans to alter benefit designs based on certain chronic diseases or socioeconomic characteristics to better provide care for patients with high needs and ultimately lower costs. At the start of the 2021 plan year, the VBID model will test allowing MA plans to offer Medicare’s hospice benefit.



For more information visit the McDermottPlus Payment Innovation Resource Center or contact Mara McDermott at 202-204-1462 or