230 lawmakers urge House leadership to delay Medicaid DSH cuts

More than half of the members of the House of Representatives have signed a letter urging House leadership to delay cuts to the Medicaid Disproportionate Share Hospital program. 

Without action, beginning Oct. 1, DSH allotments will be reduced by $8 billion a year from 2024 through 2027.

The May 15 letter from 230 representatives said DSH payments are an "important tool for hospitals that provide care in underserved communities, where they serve a disproportionate number of low-income and uninsured patients."

"In treating those that have nowhere else to turn, these hospitals incur significant uncompensated care costs," they wrote in the letter. "Furthermore, these same hospitals typically operate on very narrow, or even negative, margins. Medicaid DSH payments allow them to continue serving our constituents and communities. These payments support safety net hospitals in cities across the country and are also especially important to rural hospitals, which often face their own added financial burdens."

The lawmakers said a House bill that would delay cuts until fiscal year 2026 provides a "reasonable and responsible path to take in order to avoid the disastrous consequences to our safety net hospitals." 

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