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Disproportionate Share Hospital Allotment Reductions: Proposed Recommendations

This presentation reviews a package of three proposed recommendations related to Medicaid disproportionate share hospital (DSH) allotments based on areas of consensus at MACPAC’s October 2018 public meeting. The proposed recommendations include:

  • phasing in reductions more gradually over a longer period of time;
  • applying reductions to unspent DSH funding first; and,
  • distributing reductions in a way that gradually improves the relationship between DSH allotments and the number of non-elderly, low-income individuals in a state.

The presentation concludes by discussing other DSH policy issues that that the Commission may consider in the future.  The Commission is expected to vote on these recommendations at its January 2019 meeting.