Increased Federal Funding for Safety-Net Hospitals Serving Low-Income Patients.
This law modifies how hospitals that treat a high volume of Medicaid and uninsured patients receive federal funding. The changes allow these "safety-net hospitals" to qualify for higher Medicaid Disproportionate Share Hospital (DSH) payments, aiming to ensure their financial stability. This helps maintain essential healthcare access for vulnerable citizens, including Medicaid recipients.
Key points
Raises the cap on Medicaid payments (DSH adjustments) for hospitals serving the highest number of low-income individuals.
The new calculation includes payments from Medicare and private insurance when determining the hospital's financial need, potentially unlocking more federal support.
The changes are retroactive, applying to fiscal years starting on or after October 1, 2021, providing immediate financial relief to hospitals.
States are not required to recoup payments made before the law's enactment if they were consistent with prior state methodologies.
Expired
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