Medicare For-Profit Hospice Programs Result In 36% Lower Per-Person Costs For Beneficiaries With Alzheimer’s Disease

For Medicare beneficiaries with dementia who use for-profit hospice services during the five years after being diagnosed with Alzheimer’s disease or related dementia (ADRD), Medicare per person costs are about 36% lower. Baseline Medicare per-person costs over five years average $81,100 for beneficiaries with ADRD. Costs for those who enrolled in hospice averaged $52,100, which saved Medicare $29,000. These savings were driven by large reductions in inpatient, skilled nursing, home health, and pharmaceutical spending that offset the increased spending on hospice and palliative care.

Medicare covers hospice for up to six months for beneficiaries . . .