The purpose of this Transmittal is to inform you that effective October 1, 2018, through September 30, 2019, the Medicaid payment rates for hospice care has been updated in accordance with section 1814(i)(1)(C)(ii)(VII) of the Social Security Act. While this act provides for an annual increase in payment rates for hospice care, the hospice physician services are not increased under this provision. The rates are calculated based on the annual hospice rates established by Medicare and are adjusted to reflect the Medicare Hospice Wage Index for the Washington, DC Metropolitan Core Based Statistical Area.