Two Percent Reduction for Lack of Quality Reporting

Section 3004 of the Affordable Care Act amended the Social Security Act to authorize a Medicare quality reporting program for hospices. Section 1814(i)(5)(A)(i) of the Social Security Act requires that beginning with fiscal year (FY) 2014 and for each subsequent FY, the Secretary of the U.S. Department of Health and Human Services shall reduce the market basket update by 2% for any hospice provider that does not comply with the quality data submission requirements with respect to that FY. Note that the Medicaid minimum rates would be reduced by the amount of any penalty due to non-reporting.