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Annual Analysis of Medicaid Disproportionate Share Hospital Allotments to States

MACPAC continues to find that disproportionate share hospital (DSH) allotments share no meaningful relationship with the measures of need that Congress asked us to consider. These include:

  • changes in the number of uninsured individuals;
  • amounts and sources of hospital uncompensated care; and,
  • hospitals with high levels of uncompensated care that also provide access to essential community services.

MACPAC estimates that FY 2024 DSH allotments will be reduced by 51 percent ($8 billion) on January 20, 2024 due to scheduled reductions that were implemented as part of the Further Continuing Appropriations and Other Extensions Act, 2024 (P.L. 118-22). MACPAC will continue to monitor congressional action on DSH allotments.