Final answer:
The 'cap amount' for hospice care payments is computed by The Center for Medicare and Medicaid Services (CMS). Medicare covers hospice care, and healthcare cost containment measures have been implemented by the ACA, including expenditure caps.
Step-by-step explanation:
Overall aggregate payments made to a hospice are subject to a computed "cap amount" calculated by The Center for Medicare and Medicaid Services (CMS). Hospice care, established to provide a death with dignity and pain management in a comfortable environment, is covered under Medicare, which was created in 1965. With different components of Medicare funded through various means such as payroll taxes and beneficiary premiums, changes like those introduced by the Affordable Care Act (ACA) have sought to control healthcare costs, including the establishment of caps on certain types of expenditures.