Although the scheduled Medicaid Disproportionate Share Hospital (DSH) cuts for fiscal year (FY) 2024 were repealed, the Texas Hospital Association is advocating for Congress to protect patient care by delaying or permanently repealing three years of cuts that are now scheduled to go into effect starting April 1, 2025. THA has calculated the number of DSH hospitals and previously scheduled reduction amounts for each of the 38 U.S. House districts for FY 2025. See THA’s district-specific explainers listed below for details.
In March 2024, following ongoing advocacy from THA, Texas hospitals and the American Hospital Association, Congress repealed the pending Medicaid DSH cuts for federal fiscal year 2024 – which would have cost Texas safety-net hospitals an estimated $800 million. In the latest congressional action in December 2024, lawmakers delayed the implementation of the remaining three years of federal fiscal year cuts until the following April. THA is continuing to push for the repeal of the cuts slated for FYs 2025-2027, which would cost Texas hospitals more than $2 billion. These funding cuts are unsustainable, especially considering Texas leads the nation with about 16% of its population lacking health insurance. DSH payments compensate hospitals that treat a disproportionate number of uninsured and Medicaid patients.