The Centers for Medicare & Medicaid Services (CMS) has issued a final rule implementing the agency's methodology for making statutory reductions to Medicaid disproportionate share hospital (DSH) allotments. The DSH allotment reductions apply to fiscal years (FY) 2020 through 2025, with a $4 billion reduction applicable in FY 2020 and an $8 billion reduction applicable in each of FYs 2021 – 2025. According to CMS, its final DSH Health Reform Methodology "would mitigate the negative impact on states that continue to have high percentages of uninsured and are targeting DSH payments to hospitals that have a high volume of Medicaid patients and to hospitals with high levels of uncompensated care, consistent with statutorily-required factors." The text of the final rule, which is scheduled to be published on September 25, 2019, is available here.
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