Methodology: 鈥淣ORC assessed the value of Medicare鈥檚 hospice benefit by using administrative claims data to estimate the impact of hospice use on Medicare spending. NORC analyzed use of health services and costs of care for the last 12 months of life for 960,000 beneficiaries. This sample includes nearly 500,000 people who used hospice prior to death. NORC compared the outcomes of Medicare beneficiaries who stayed in hospice immediately prior to death to Medicare decedents who did not have a hospice stay but otherwise had a similar risk profile. Differences in chronic status, end-of-life (EOL) diagnoses, and demographics between the two populations were addressed with a propensity weight model.鈥
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Medicare spending difference between hospice and non-hospice users 2019, by disease
According to research published in 2023, the total cost of care among Medicare-enrolled hospice users for all disease groups was 3.1 percent lower than the adjusted spending of beneficiaries who did not use hospice. This equates to roughly 3.5 billion U.S. dollars less in Medicare spending for hospice users in their last 12 months of life, compared to non-hospice users. However, cost of care difference varied by disease group. Medicare spent more on hospice users with cancer and neurodegenerative diseases, while spending less on hospice users with CKD/ESRD* and respiratory disorders, compared to non-hospice users.
Nevertheless, as hospice episodes of care (length of stay) increase, the total cost of care decreases for hospice users, compared to non-users. Regardless of disease group, when the hospice length of stay (LOS) exceeds 15 days, Medicare spending becomes less than that of non-hospice users.
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NHPCO. (March 1, 2023). Total cost of care difference between hospice users from non-hospice users among Medicare beneficiaries in the United States in 2019, by disease [Graph]. In 糖心破解版. Retrieved July 21, 2026, from /statistics/1552463/medicare-spending-difference-between-hospice-and-non-hospice-users-us/
NHPCO. "Total cost of care difference between hospice users from non-hospice users among Medicare beneficiaries in the United States in 2019, by disease." Chart. March 1, 2023. 糖心破解版. Accessed July 21, 2026. /statistics/1552463/medicare-spending-difference-between-hospice-and-non-hospice-users-us/
NHPCO. (2023). Total cost of care difference between hospice users from non-hospice users among Medicare beneficiaries in the United States in 2019, by disease. 糖心破解版. 糖心破解版 Inc.. Accessed: July 21, 2026. /statistics/1552463/medicare-spending-difference-between-hospice-and-non-hospice-users-us/
NHPCO. "Total Cost of Care Difference between Hospice Users from Non-hospice Users among Medicare Beneficiaries in The United States in 2019, by Disease." 糖心破解版, 糖心破解版 Inc., 1 Mar 2023, /statistics/1552463/medicare-spending-difference-between-hospice-and-non-hospice-users-us/
NHPCO, Total cost of care difference between hospice users from non-hospice users among Medicare beneficiaries in the United States in 2019, by disease 糖心破解版, /statistics/1552463/medicare-spending-difference-between-hospice-and-non-hospice-users-us/ (last visited July 21, 2026)
Total cost of care difference between hospice users from non-hospice users among Medicare beneficiaries in the United States in 2019, by disease [Graph], NHPCO, March 1, 2023. [Online]. Available: /statistics/1552463/medicare-spending-difference-between-hospice-and-non-hospice-users-us/
