In July, the Centers for Medicare & Medicaid Services proposed a rule to implement the Medicaid Disproportionate Share Hospital payment reductions beginning fiscal year 2018 through 2025, as required by the Affordable Care Act. The payment reductions took effect Oct. 1. Absent Congressional action to retroactively delay the cuts, Texas hospitals will lose about $150 million in 2018 alone. The cumulative loss for Texas hospitals through 2024 is $3.2 billion.
Texas hospitals urged the Texas Congressional delegation to repeal or delay the cuts, and THA recently submitted written comments to CMS on the rule.
Texas hospitals support H.R. 3922, the Championing Healthy Kids Act, which reauthorizes funding for the Children’s Health Insurance Program for five years and delays the onset of cuts to Medicaid DSH payments until Oct. 1, 2019. The cuts would be implemented according to the following schedule:
FY 2020 (Oct. 1, 2019-Sept. 30, 2020): $4 billion
FY 2021 (Oct. 1, 2020-Sept. 30, 2021): $8 billion
FY 2022 (Oct. 1, 2021-Sept. 30, 2022): $8 billion
FY 2023 (Oct. 1, 2022-Sept. 30, 2023): $8 billion
FY 2024 (Oct. 1, 2023-Sept. 30, 2024): $8 billion
FY 2025 (Oct. 1, 2024-Sept. 30, 2025) $8 billion
To account for the two-year delay, the amounts of the cuts nationally will increase to $8 billion in fiscal years 2021, 2022 and 2023.
See how the DSH payment cuts under current law impact your Congressional district using the resources below.