CHA News Article

CMS Finalizes Medicaid Disproportionate Share Hospital Allotment Reductions
For CEOs, CFOs, finance staff, government relations staff

The Centers for Medicare & Medicaid Services (CMS) has issued a final rule implementing reductions to Medicaid disproportionate share hospital (DSH) allotments, as required by the Affordable Care Act, beginning in federal fiscal year (FFY) 2020 through FFY 2025.  

CMS has also finalized the DSH Health Reform Methodology (DHRM) to implement the reductions. The DHRM will generate a state-specific DSH allotment reduction amount for each fiscal year. In the final rule, CMS modifies the DHRM developed in 2013 by incorporating new and updated data sources.

In 2017, CHA and the statewide DSH Task Force submitted a comment letter to CMS recommending several changes to the proposed rule, including concerns about the DHRM.

Last week the House of Representatives passed a measure to continue funding for the federal government through Nov. 21. Of note to hospitals, the legislation includes a delay through Nov. 21 to the scheduled cuts to the Medicaid DSH program, set to take effect Oct. 1. The Senate is expected to consider the legislation in the next few days.

CHA is reviewing the final rule and continues to advocate that the cuts be eliminated completely.

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