Cost of Hospice Care

Though many families stress about the cost of hospice care in the United States, they need not worry. For patients over 65, the vast majority of costs are covered by Medicare. For patients under 65, there are other financing options available such as Medicaid and private insurance, and unlike other forms of end of life care, hospice costs are generally low.

Financing Options

Why Hospice Care is Less Expensive

There are several reasons why the cost of hospice care remains relatively low.

• Patients are most often cared for in their homes instead of a hospital. This saves on having to pay for hospital staff, room and board, and any treatment that can only be administered in a hospital.
• It involves fewer procedures and less medical equipment. Treatment is much simpler since the patient has elected to forego complex lifesaving procedures. Since the goal of hospice care is alleviating pain and making the patient comfortable, fewer types of medication are needed.
• Patients only pay for services they require, such as visits from caregivers and medications.
• Family, friends, and volunteers usually assist with hospice care and fulfill roles that otherwise would need to be occupied by paid medical staff.

Hospice Care Rates

The typical range for out-of-pocket costs is about $150 per day for at-home care and $650 per day for care in a facility. In the US, about 85% of the cost of hospice care is covered by Medicare. In 2016, Medicare paid an average of $153 per day per person to cover hospice care, with an average cost of approximately $12,000 per patient.

Regardless of cost or condition of the patient, Medicare is required to pay for all medically necessary hospital and doctor care. This coverage includes nursing care, counseling, inpatient care, medications and medical equipment, physical and occupational therapies, bereavement services for family members, and more. It does not cover room and board or emergency services such as emergency room costs or ambulance fees.

If the patient is not covered by Medicare, Medicaid can cover hospice care, though policies vary state-by-state. Some specialized government programs, such as TRICARE and CHAMPVA, provide health benefits for active or retired military personnel and their dependents. Some private health insurance plans also cover hospice care.