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Additional Analyses of Potential Recommendations for Countercyclical Disproportionate Share Hospital Allotments

Medicaid disproportionate share hospital payments offset hospital uncompensated care costs for Medicaid-enrolled and uninsured patients. During economic recessions, Medicaid enrollment and the number of people who are uninsured increases.

During the October 2022 MACPAC meeting, Commissioners agreed that a countercyclical policy should be implemented during future economic recessions, and asked for additional analyses of the effects of making this policy permanent. This presentation looked at the state and federal effects of implementing this policy only during economic recessions versus also implementing this policy during periods of normal economic growth.