HomeLatest NewsFederal NewsMACPAC Recommends Phasing in Medicaid DSH Cuts, Restructuring Allotments

MACPAC Recommends Phasing in Medicaid DSH Cuts, Restructuring Allotments

The Medicaid and CHIP Payment and Access Commission (MACPAC) released its March 2019 report to Congress, which recommends Congress phase in the Affordable Care Act’s (ACA) Medicaid Disproportionate Share Hospital (DSH) reductions over a longer period and restructure the DSH allotment methodology based on the number of low-income individuals in a state. The commission also recommends that Congress require the U.S. Department of Health and Human Services to apply the reductions to unspent DSH allotments first. The commission approved the recommendations in January.

“Although increased coverage under the ACA has reduced unpaid costs of care for uninsured individuals, there has been a net increase in hospital uncompensated care costs for DSH hospitals because of an increase in Medicaid shortfall, which is the difference between a hospital’s Medicaid payments and its costs of providing services to Medicaid-enrolled patients,” the report notes.

The American Hospital Association (AHA) continues to urge Congress to delay the ACA’s Medicaid DSH reductions until more substantial coverage gains are realized, as AHA noted in comments to the commission in January.

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