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CMS Releases Medicaid DSH Allotment Final Rule

Monday, September 16, 2013

On September 13th, 2013, the Center for Medicare & Medicaid Services (CMS) issued a final rule entitled, "Disproportionate Share Hospital Payment Reductions (CMS-2367-F)." The final rule issued by CMS details the DSH Health Reform Methodology that will be used to implement annual payment reductions for fiscal year (FY) 2014 and FY 2015. Additional DSH reporting requirements for use in implementing the new methodology are also described.

States use DSH payments for qualifying hospitals that serve a large number of low-income and uninsured individuals.  With the implementation of the Affordable Care Act (ACA), more people will have access to health insurance coverage through the Marketplace or Medicaid; which is expected to reduce the amount of uncompensated care provided by hospitals. As a result of the ACA, Medicaid DSH allotments will be reduced annually from FY 2014 through FY 2020.

Read the Final Rule.

Learn more about TAC's Health Reform work.