Federal Legislation
Congress Proposes Hospice Care Payment Reforms
March 18, 2026
Congressional leaders Senator Mark R. Warner and Representative Linda T. Sánchez introduced the Hospice CARE Act in 2026 to modernize the Medicare hospice benefit. This legislation aims to strengthen program integrity by implementing anti-fraud measures and reforming payment structures to incentivize high-quality, in-person hospice care. It also expands access to respite and transitional inpatient care, impacting how Medicare contracts hospice services and reimburses providers. Procurement professionals should anticipate changes in Medicare hospice contracting requirements, increased oversight, and potential shifts in funding allocations that prioritize patient-centered care and program accountability.
- The bill introduces payment reforms that reward in-person care and costly palliative treatments, affecting hospice service reimbursement models.
- Enhanced program integrity measures will likely increase compliance and auditing requirements for hospice providers under Medicare contracts.
- Expanded access to respite and transitional inpatient care may create new procurement opportunities for providers specializing in these services.
- Procurement teams should prepare for updated Medicare contracting terms and oversight protocols once the legislation advances.
This bill strengthens and enhances Medicare’s hospice benefit so it provides the critical care patients and their families need – like respite care for caregivers and coverage of palliative treatments like dialysis and radiation – all while protecting the program from those trying to exploit it.
— Representative Linda T. Sánchez
This legislation provides an important opportunity to pursue thoughtful reforms to the Medicare hospice benefit that both preserve patient access and address ongoing concerns related to program integrity.
— Tom Koutsoumpas
Making decisions about hospice and end-of-life care is one of the most difficult moments that families can endure, yet Medicare’s hospice benefit is out-of-touch with the needs of patients and providers.
— Senator Mark R. Warner
Agencies
United States Senate, United States House of Representatives, Centers for Medicare & Medicaid Services, Medicare
Contracts
Locations
Sources
- Warner, Sánchez Introduce Bicameral Bill to Strengthen Hospice Care for Patients, Protect Against Fraud - Press Releases - Mark R. Warner · Warner Senate · Mar 18
- Warner, Sánchez Introduce Bicameral Bill to Strengthen Hospice Care for Patients, Protect Against Fraud - Press Releases - Mark R. Warner · Warner Senate · Mar 18
- Sánchez, Warner introduce bill to strengthen hospice care for patients, guard against fraud | Congresswoman Linda Sanchez · Sanchez Ca House · Mar 18