Rep. John Lewis Proposes to Delay DSH Cuts

Yesterday, Rep. John Lewis (D-Ga.) proposed the DSH Reduction Relief Act, which would delay Medicare and Medicaid disproportionate share hospital payment cuts until the government's 2016 fiscal year, according to an AHA News Now report.

Under the Patient Protection and Affordable Care Act, DSH payments are expected to be reduced by more than $64 billion through 2019, according to Moody's Investors Service. More specifically, Medicaid DSH payments will be cut 50 percent by 2019 (totaling $14.1 billion), while Medicare DSH payments will be axed 75 percent (totaling $49.9 billion). The cuts begin this October.

Rep. Lewis has been an advocate for safety-net hospitals, which rely heavily on DSH payments. In April, he wrote a letter to HHS, which highlighted how many hospitals will lose DSH payments even if states decide not to expand Medicaid, which was expected to offset the lost DSH payments.

More Articles on DSH Payments:

CMS' Fiscal Year 2014 IPPS Proposed Rule: 10 Points to Know
Budget Breakdown: How President Obama's FY 2014 Budget Would Affect Hospitals
Moody's: Cuts to Disproportionate Share Payments Will Weigh Heavy on States and Safety-Net Hospitals

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