Medicare Hospice Demonstration Act of 2004 - Directs the Secretary of Health and Human Services to establish Hospice Demonstration Projects to increase the utility of Medicare (title XVIII of the Social Security Act (SSA)) hospice services for seriously ill Medicare beneficiaries. Includes a supportive and comfort care benefit within such program. Requires the Secretary to conduct demonstration projects in between three and six sites. Sets forth the criteria for selecting such sites, including geographic diversity and accessibility. Requires special rules for adjusting payment to any Medicare+Choice (SSA title XVIII part C) organization offering a Medicare+Choice plan to reflect an enrolled member's participation in such a project.
Directs the Secretary to establish a Hospice Education Grant program under which the Secretary awards education grants to entities participating in the demonstration projects for the purpose of providing information about the Medicare hospice benefit and the benefits available to Medicare beneficiaries under the demonstration projects.