CHA News Article

CMS Posts FY 2014 Medicaid and IMD DSH Allotments

The Centers for Medicare & Medicaid Services (CMS) has posted the attached notice announcing preliminary federal disproportionate share hospital (DSH) allotments for fiscal year (FY) 2014. The notice also announces the preliminary federal share FY 2014 limits on aggregate DSH payments that states may make to institutions for mental diseases (IMDs) and other mental health facilities. CMS estimates California’s DSH allotment at $1.169 billion and the state’s IMD DSH limit at $777,960. The DSH allotment notice was delayed by legislation that repealed Medicaid DSH cuts under the Affordable Care Act for FYs 2014 and 2015. Since the final rule implementing the cuts applied only to 2014 and 2015 and the legislation pushes both the 2014 and 2015 cuts into 2016, the final rule is effectively moot. CHA believes CMS must go through a new round of rulemaking, as it had planned for implementing the 2016 cuts, and that may not occur until 2015. CHA continues to monitor the situation closely and will keep the members informed.