Staff Contact: Kim Duggan or Andrew Wheeler
CMS released a proposed rule that changes the hospital-specific limit on Medicaid disproportionate share hospital payments. The final rule affords states and hospitals more clarity on how the limit will be calculated.
The MO HealthNet Division implemented the DSH-related provisions of the CAA of 2021, pertaining to the treatment of third-party payments, during state FY 2022, effective Oct. 1, 2021. As a result, no further adjustments need to be made to hospital DSH payments at this time.
In addition, the CAA 2021 modified section 1923(f) of the Act to clarify that DSH allotment reductions will occur from FY 2024 through FY 2027, in the amount of $8 billion each year. Historically, Congress has postponed the implementation of the DSH allotment reductions and is expected to do so again.
MHA published an issue brief with additional information.