CMS issues final rule detailing Medicaid DSH allotment reductions

The Centers for Medicare & Medicaid Services today issued a final rule delineating a methodology for implementing the Affordable Care Act aggregate reductions to state Medicaid Disproportionate Share Hospital allotments beginning in fiscal year 2020. In 2013, CMS issued a final rule to implement the ACA state Medicaid DSH allotment reductions and described the methodology it planned to use. Subsequent legislative actions, led by the AHA, delayed the implementation of the cuts until FY 2020. The House of Representatives last week approved a continuing resolution that would fund the federal government through Nov. 21, as well as delay through Nov. 21 the $4 billion reduction in Medicaid DSH allotments scheduled to take effect Oct. 1. The Senate is expected to take up the bill this week. Today’s final rule implementing the reductions modifies the DSH Health Reform Methodology developed in 2013 by incorporating new and updated data sources.