CMS Proposes Methodology For Medicaid DSH Payment Cuts In 2014 & 2015

For federal fiscal years 2014 and 2015, Medicaid payments to disproportionate share hospitals (DSH) will be reduced by $500 million in 2014 and $600 million in 2015. But a new proposed methodology will prevent DSH payments reductions from taking place as an across-the-board cut.

In a proposed rule released on May 13, 2013, the Centers for Medicare and Medicaid Services outlined a five-point DSH Health Reform Methodology (DHRM) for determining state-specific DSH payment reductions. In general, states with the lowest percent of uninsured individuals receive the largest reductions. With this proposed rule, CMS . . .