Medicaid DSH Third-Party Payer Final Rule Summary

On February 23, 2024, the CMS published a final rule in the Federal Register (89 FR 13916) that addresses legislative changes to the hospital-specific limit on Medicaid disproportionate share hospital (DSH) payments that took effect on October 1, 2021, as a result of the Consolidated Appropriations Act (CAA) 2021. The final rule is intended to provide more clarity on how the limit will be calculated. It also makes technical changes and clarifications to the DSH program that CMS believes will enhance administrative efficiency.