GAO issues report on Medicaid DSH payments

Jul 30, 2019 - 02:43 PM
Image of inside of Capitol Building with text that says "Medicaid DSH"

Medicaid disproportionate share hospital payments to eligible hospitals covered 51% of their uncompensated care costs in 2014, the most recently available audited data, according to a report released yesterday by the Government Accountability Office. The payments are designed to help offset uncompensated care costs for hospitals serving a high proportion of Medicaid beneficiaries and uninsured low-income patients. The Affordable Care Act required a phased reduction in DSH allotments to states, reflecting the expectation that the number of uninsured would decline as states expanded Medicaid eligibility to certain low-income adults. However, only 36 states and the District of Columbia have chosen to expand Medicaid eligibility under the law to date. After several delays by Congress, the DSH reductions are scheduled to begin in fiscal year 2020. Legislation (H.R. 2328) approved this month by the House Energy and Commerce Committee to address surprise medical bills would eliminate the Medicaid DSH cuts in FY 2020 and 2021 and reduce the cuts to $4 billion for FY 2022. Leaders of the Senate Finance Committee requested the GAO report.

Related News Articles

Headline
Blog: Four Reasons the HHS Provider Tax Study Misses the Mark
A new AHA blog examines a Department of Health and Human Services issue brief that claims Medicaid hospital provider taxes increase employer-sponsored…
Blog
HHS Analysis Does Not Establish a Causal Link Between Medicaid Provider Taxes and Commercial Premiums
Public
A recent issue brief from the Department of Health and Human Services asserts that Medicaid hospital provider taxes raise employer-sponsored insurance premiums…
Headline
Court strikes ‘medically frail’ definition in Medicaid community engagement requirements 
The U.S. District Court for the District of Massachusetts yesterday ruled in favor of 25 states and the District of Columbia to vacate the Centers for Medicare…
Headline
Study: Extending Medicaid coverage 12 months increased use of postpartum care for mothers with pregnancy complications 
Extending Medicaid coverage by 12 months following childbirth increased use of postpartum care among mothers with pregnancy complications such as diabetes and…
Headline
HHS clarifies when state Medicaid agencies can use patient SUD records to verify exemption from community engagement requirements
The Department of Health and Human Services Office for Civil Rights released new guidance on statutory and regulatory requirements under 42 CFR Part 2, which…
Headline
CMS launches outcomes-driven quality measurement initiative for states 
The Centers for Medicare & Medicaid Services Sept. 25 announced the launch of a new initiative measuring quality in Medicaid and the Children’s Health…