Under current law, all states' federal Medicaid DSH allotments will be reduced by $4 billion in federal fiscal year 2020 (beginning Oct. 1, 2019). Cuts will increase to $8 billion a year in fiscal years 2021 to 2025.
The cut to Texas hospitals will not be known until CMS publishes its final rule describing its methodology for distributing federal DSH allotment reductions. However, the Medicaid and CHIP Payment Access Commission estimates the reduction will be $450 million, or 22.8 percent of DSH payments, in 2020.
Texas hospitals support the repeal of DSH cuts or, at a minimum, a two-year delay.
THA urges every member hospital to contact their member of the U.S. House of Representatives to ask that they sign on to the bipartisan
DSH letter, co-lead by Rep. Pete Olson (TX-22), to delay scheduled Medicaid DSH cuts for two years. The deadline to sign on is May 3.
In addition to Rep. Olson, to date, 10 members of the Texas Congressional delegation have signed on to the letter (Reps. Bernice Johnson, Castro, Cuellar, Doggett, Gohmert, Gonzalez, Hurd, Jackson Lee, McCaul and Vela). THA members are encouraged to
thank these members for their support.
See how the DSH payment cuts under current law impact your Congressional district using the resources on this page.
Stephanie Limb, vice president, advocacy communications, 512/465-1557
Kate Hendrix, senior director, policy analysis, 512/465-1556
Engel-Olson Letter to DSH