Medicare Benefit Policy Manual (Pub. 100-02), Ch. 9 § 20.4
Election by Managed Care Enrollees
20.4 - Election by Managed Care Enrollees
(Rev. 188, Issued: 05-01-14; Effective: 08-04-14; Implementation: 08-04-14)
A managed care enrollee may elect the hospice benefit. After the hospice election,
Medicare pays the hospice for hospice services and pays for services of the managed care
attending physician, who may be a nurse practitioner, (as defined in section 20.1 of this
chapter) and services not related to the patient’s terminal illness, through the fee-for-
service system. (See 42 CFR 417.531 and 417.585.) Once under a hospice election, a
managed care patient may also choose to use a provider outside of his or her managed
care organization for care unrelated to the terminal illness or related conditions, or as the
attending physician. See Pub. 100-04, Medicare Claims Processing Manual, chapter 11,
section 40 for requirements for physician billing.
Once a managed care enrollee has elected hospice, all his or her Medicare benefits revert
to fee-for-service, though the enrollee still remains on managed care for any additional
benefits provided by his or her managed care plan, such as dental or vision coverage.
The Medicare hospice benefit, through fee-for-service Medicare, covers all hospice care
from the effective date of election to the date of discharge or revocation. During the
election, fee-for-service Medicare also covers attending physician services and all care
unrelated to the terminal illness. Upon discharge or revocation, fee-for-service Medicare
continues to cover the beneficiary through the end of the month when the beneficiary
revokes or is discharged from hospice alive. At the start of the month following
revocation or discharge, all billing and coverage revert back to the managed care plan
(see Pub 100-04, Medicare Claims Processing Manual, chapter 11, §30.4).