Claims and Reimbursement Guidance for Hospice Services


Date: July 31, 2025
From: Health Plan of San Joaquin/Mountain Valley Health Plan (“Health Plan”)
To: Health Plan Providers
Type: Regulatory
Subject: Claims and Reimbursement Guidance for Hospice Services
Business: Medi-Cal Managed Care

Effective Immediately HPSJ/MVHP is aligning its claims processing and billing practices for hospice services with updated guidance from the Department of Health Care Services (DHCS), including All Plan Letter (APL) 25-008 and the Medi-Cal Provider Manual.

Please follow the requirements below to ensure proper claim submission and timely reimbursement.

PROVIDER ELIGIBILITY REQUIREMENTS

To qualify for reimbursement, hospice providers must:

  • Be licensed by the California Department of Public Health (CDPH)
  • Be Medicare-Certified
  • Be enrolled in Medi-Cal
  • Be credentialed and contracted with HPSJ/MVHP

DOCUMENTATION REQUIREMENTS

Hospice providers are responsible for:

  • Submitting the Medi-Cal Hospice Program Election Notice and addendum to the health plan within five (5) calendar days of the member’s election of hospice services. You may fax to 209-762-4720.
  • Ensuring documentation includes:
    • Certification of terminal illness signed by the hospice medical director and attending physician (if applicable).
    • Written plan of care.
    • Documentation supporting the level of care provided, especially for inpatient services.

Failure to submit timely election documentation may result in non-payment for days of service prior to receipt.

BILLING REQUIREMENTS

  • Claims must be submitted using the UB-04 form or its electronic equivalent.
  • Revenue codes must match the level of care provided, including:
    • 0650–0659: Routine, respite, inpatient, and continuous care
    • 0657: Hospice physician services
    • 0658: Room and board
  • Accurate Place of Service (POS) codes must be used:
    • 12 (Home), 21 (Inpatient Hospital), 31 (Skilled Nursing Facility), 32 (Nursing Facility)

MEMBER ELECTION & REVOCATION RIGHTS

  • Members (or authorized representatives) may elect hospice services for initial 90-day periods followed by unlimited 60-day benefit periods.
  • Members may revoke hospice at any time, which must be documented via a signed revocation form submitted to the plan within 5 days. You may fax to 209-762-4720.
  • Members may change their hospice provider once per benefit period.

MCP COVERAGE AND PAYMENT

  • HPSJ/MVHP must pay hospice providers no less than the Medicare hospice rates.
  • Payment is based on the level of care, benefit period, and service setting.
  • Routine home care rates are split into high (first 60 days) and low (day 61+), with service-intensity add-ons for the final seven days of life.
  • Room and board for hospice services in SNF or ICF settings is reimbursed under Revenue Code 0658 and must include the facility information where the member resides.

PHYSICIAN SERVICES

  • Reimbursable under Revenue Code 0657.
  • Must be related to the terminal illness and provided by hospice-employed or contracted physicians.
  • Limited to one visit per day per member.

UTILIZATION REVIEW

  • Only general inpatient hospice care requires prior authorization.
  • Other levels of hospice care (e.g., routine, respite, continuous home care) must not be subject to prior authorization but may be reviewed for medical necessity.

To view APL 25-008 for Hospice Services and Medi-Cal Managed Care please utilize the link below:

https://www.dhcs.ca.gov/formsandpubs/Documents/MMCDAPLsandPolicyLetters/APL%202025/APL25-008.pdf


If you have any further questions, please contact your Provider Services Representative, or call our Customer Service Department at 1-888-936-PLAN (7526). You may also visit https://www.hpsj.com/alerts/ for online access to the documents shared. The most recent information about Health Plan and our services is always available on our website www.hpsj-mvhp.org

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