Medicaid and DSH

Medicaid and DSH

Medicaid is a program that provides health care coverage to over 52 million low-income individuals in the US, including children, pregnant woman, the elderly and the disabled. Medicaid mandates coverage of certain populations in these categories based on incomes relative to the federal poverty level, as well as certain services, with state options to finance their programs at higher levels with a broader range of services. Medicaid is a shared federal and state program that covers a range of benefits including physician care, hospital care, and long term care. States have discretion regarding how to pay providers for services in the Medicaid program.

Medicaid is also an important source of financing for safety net providers such as community health centers and public and other safety net hospitals. Continue Reading

Inside Funding the Safety Net

Resources for this section

OurView: Ensure Access for Vulnerable Patients by Stopping DSH Cut in 2010 - May 2010
In light of the economic recession, Congress enacted increased Medicaid Disproportionate Share Hospital payments for Fiscal Years 2009 and 2010. That boost, which has significantly helped maintain care access, jobs and essential community services, is slated to end soon. Learn why Congress must act swiftly to stop the DSH cliff.

Our View: Ensure Patient Access through a Reasonable and Responsible Reduction of DSH (Dec. 23, 2009)
Even with comprehensive health reform, safety net hospital systems will continue to serve a vital role in the health care system. Our View outlines why support for these systems via Medicaid and Medicare Disproportionate Share Hospital (DSH) payments will still be needed after reforms take hold.

NAPH Sends Joint Letter Urging Senate Leadership to Moderate DSH Cuts (Nov. 5, 2009)
NAPH worked with the National Association of Children's Hospitals to send a letter signed by multiple Senators urging Senate leadership to address DSH payment cuts in the Senate Finance Committee's health reform bill.

NAPH Sends Letter to Senate Leaders Concerning DSH Payment Levels in Senate Finance Committee Bill (Oct. 8, 2009)
NAPH sent a letter to Senate leadership to express support for the HELP and Finance Committee work on health reform, as well as concern that Medicaid and Medicare DSH payment cuts are too steep and begin too early in the health reform implementation process.

Hospital Industry Expresses Importance of Maintaining DSH Funding throughout Health Reform (May 2009)
The hospital industry sent a letter to the House and Senate urging members not to reduce or eliminate federal support for DSH programs before coverage expansions are universal and fully implemented; Medicare and Medicaid payment shortfalls are addressed; and alternative funding for essential community-wide services is in place.

Medicaid DSH Funds: Essential Support for the Nation’s Health Safety Net
The Medicaid disproportionate share hospital (DSH) payment adjustment was created in 1981 to help ensure that Americans have adequate access to health care. The goal of this adjustment was to ensure the financial viability of safety net hospitals that shoulder a disproportionate burden of caring for the poor and uninsured.

March 2009: Issue Brief: The Health Care Reform Dialogue - Key Questions about Coverage and Access
Safety net health systems are committed to providing high quality health care to their communities—now and in the future. Today, safety net health systems rely heavily on Medicaid disproportionate share hospital (DSH) payments to fulfill their missions of: 1) treating a disproportionate number of Medicaid and uninsured patients; 2) training physicians; and 3) ensuring that essential health care services such as trauma and burn centers are available throughout the country.

Upcoming Events

View Full Calendar

NAPH Call with Dr. David Blumenthal on EHR Incentive Programs
08/05/2010-08/05/2010

The Fourth National Medicare RAC Summit
09/13/2010-09/14/2010
Arlington, VA

National Summit of Clinicians for Healthcare Justice
09/23/2010-09/25/2010
Doubletree Hotel Crystal City - Washington, DC Metro Area

NAPH Fall Meeting: Implementing Health Reform
11/08/2010-11/09/2010
Washington, DC

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