Medicaid DSH Third-Party Payer Proposed Rule Summary

On February 24, 2023, CMS published a proposed rule in the Federal Register (88 FR 11865) that would address 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, 2021. The proposed rule is intended to provide more clarity on how the limit will be calculated; it would also make technical changes and clarifications to the DSH program that CMS believes would enhance administrative efficiency. The 60-day comment period ends at the close of business on April 25, 2023.