CHA News Article

CMS Proposes Medicaid DSH Reduction Methodology
Comments due Aug. 28

The Centers for Medicare & Medicaid Services (CMS) has issued the attached proposed rule implementing reductions to Medicaid disproportionate share hospital (DSH) allotments, as required by the Affordable Care Act, beginning in federal fiscal year (FFY) 2018 through 2025. CMS proposes to establish the DSH Health Reform Methodology (DHRM) to generate a state-specific DSH allotment reduction. The proposal’s illustration of the DHRM’s impact reflects a reduction to California of more than $153 million for FFY 2018. CHA, along with the statewide DSH Task Force, will analyze the proposed rule and provide members with additional details in the coming weeks. Comments on the proposed rule are due Aug. 28.