Medicare Hospice Care: What Families Need to Know for 2027

What this rule does

The Centers for Medicare and Medicaid Services (CMS) published a final rule on August 3, 2026. It updates how Medicare pays for hospice care in fiscal year 2027.

The rule also protects patients. One change requires hospices to give the hospice election statement addendum to every Medicare patient when they start hospice care. This addendum lists items and services the hospice decides are not related to the patient's terminal illness.

The rule takes effect October 1, 2026. It is a payment and program update, so you do not need to apply for anything to be covered by these protections.

Why the addendum matters to you

When a loved one enters hospice, Medicare covers care tied to the terminal illness. Sometimes there is confusion about what is covered and what is not.

The addendum spells this out in writing. It helps families understand which services the hospice will and will not pay for, so you can avoid surprise bills and ask questions early.

Because hospices must now provide this document at the time of hospice election, you have a right to see it. If you do not receive one, you can ask for it.

The Medicare hospice benefit is already yours

If you or a family member has Medicare Part A and a doctor certifies a terminal illness, the Medicare hospice benefit may be available. It is a benefit you have already paid into.

Using Medicare is free to sign up for. You never need to pay a middleman to enroll in Medicare or to start hospice care. Be cautious of anyone who charges a fee to help you access a government benefit.

OpenFinancial is not a government agency and cannot speed up or guarantee coverage. The steps below point you to the free, official path.

Frequently asked questions

Do I have to pay to start Medicare hospice care?

No. Signing up for Medicare and starting hospice care is free. You never need to pay a private company to access this benefit.

What is the hospice election statement addendum?

It is a written document that lists items and services the hospice decides are not related to the terminal illness. Under the new rule, hospices must give it to every Medicare patient when hospice care begins.

When do these changes take effect?

The regulations are effective October 1, 2026, according to the Federal Register notice from CMS.

Who can I call for free help?

You can call 1-800-MEDICARE (1-800-633-4227) or contact your State Health Insurance Assistance Program for free one-on-one guidance.