Cms finalizes how it will cut medicaid dsh payments starting oct 1 a rule from cms finalizes 44 billion in medicaid dsh payment cuts starting next month and continuing until fy 2025 but congress may delay implementation source centers for medicare and medicaid services by jacqueline lapointe september 25 2019 update 9 27 2019 the senate passed a continuing resolution that would . Cuts in medicaid disproportionate share hospital medicaid dsh allotments to states were mandated by the affordable care act based on the expectation that the law would greatly reduced the number of uninsured americans while this has been the case the decline in the number of uninsured has not been as great as expected for this reason congress has on several occasions delayed the required . The centers for medicare medicaid services cms released a final rule implementing the affordable care acts acas medicaid disproportionate share hospital dsh payment cuts beginning in fiscal year fy 2020 the dsh health reform methodology dhrm proposed in 2017 before congress delayed the dsh cuts to fy 2020 outlines how cms will calculate states reductions. When the federal governments 2014 fiscal year begins on oct 1 2013 hospitals will lose 500 million in medicaid dsh payments the cut will increase to 600 million in 2015 due to the affordable care act aca cms will be reducing dsh payments to hospitals by 181 billion between fiscal years 2014 and 2020 last weeks final rule only . The aca included cuts to the medicaid dsh program totaling 181 billion beginning in fiscal year fy 2014 through fy 2020 in the proposed rule cms provides details on the dsh health reform methodology that the agency will use to determine the amount of reduction to each states dsh allotment for fys 2014 and 2015 specifically the dsh health reform methodology will incorporate five
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