Bipartisan Bill Introduced to Prevent Medicaid Cuts to Hospitals

A bipartisan bill, the Save Our Safety-Net Hospitals Act, has been introduced with the intent to prevent massive cuts to America’s hospitals’ Medicaid payments. Medicaid Disproportionate Share Hospital (DSH) funding helps preserve access to care at hospitals and health systems that serve the most vulnerable populations.  Many hospitals rely on this funding to remain operational—but DSH caps determine the maximum amount of federal Medicaid DSH funding a hospital can receive. The amount of capped DSH funding has traditionally been based on the financial losses from services provided to uninsured patients, Medicaid enrollees and dual-eligible enrollees (Medicaid patients who also have Medicare or other third-party coverage). 

This legislation defines the Medicaid shortfall component of the DSH cap to include costs and payments for (a) patients for whom Medicaid is the primary payer, plus (b) unreimbursed costs associated with Medicare duals (if any), plus (c) unreimbursed costs associated with all other duals (if any).  

This measure was introduced by Congresswoman Doris Matsui (D-Solano) and Representatives Nick LaLota (R-NY), Yvette Clarke (D-NY), Larry Bucshon, M.D. (R-IN), Mike Lawler (R-NY), and Frank Mrvan (D-IN). For additional information, contact RCRC Policy Advocate Sarah Dukett.