March 16, 2001
Medicaid DSH Legislation Introduced
Legislation addressing FY 2003 cuts to Medicaid Disproportionate Share Hospital (DSH) state allotments has been introduced in the House. Entitled the "Medicaid Safety Net Hospital Preservation Act of 2001," (H.R. 854) was introduced March 1 by Reps. Ed Whitfield (R-Ky.) and Diana DeGette (D-Colo.).
Specifically, the bill prevents cuts to Medicaid DSH allotments scheduled to occur in FY 2003. The Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act (BIPA) prevented the scheduled reductions to the Medicaid DSH state allotments for FYs 2001 and 2002; however, in FY 2003 the state allotments revert back to reduced levels established by the Balanced Budget Act of 1997. The bill affects DSH payments in 35 states. The AAMC and 9 other hospital and health care organizations support the legislation. A letter asking all Members of Congress to cosponsor the bill states, "this legislation is crucial to the Medicaid DSH program, which funds hospitals that serve large numbers of patients that are uninsured, underinsured or receive services Medicaid." Companion legislation in the Senate will be introduced shortly.
Other organizations supporting the legislation include the American Hospital Association, the Catholic Health Association of America, the Federation of American Hospitals, the Healthcare Financial Management Association, the National Association of Children's Hospitals, the National Association of Public Hospitals and Health Systems, the National Association of Urban Hospitals, Premier, Inc., and VHA.
Information: Lynne L. Davis, AAMC Office of Governmental Relations, 202-828-0526.
