CHA News Article

CMS Issues Final Rule on Medicaid DSH Allotment Reduction Under ACA

The Centers for Medicare & Medicaid Services (CMS) has posted the final rule implementing the provision of the Affordable Care Act that reduces Medicaid state disproportionate share hospital (DSH) allotments. CHA is currently reviewing the final provisions and will share more information and a detailed summary soon. The final rule adopts a proposal to ignore states’ decisions on the now-optional Medicaid expansion over the next two years when calculating DSH reductions, totaling $1.1 billion. According to a CMS fact sheet about the final rule, states’ decisions to expand Medicaid will not affect the reduction in DSH allotments. CMS states that it intends to revisit the DSH allotment reduction methodology in federal fiscal year 2016. The final rule is attached.