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
