• Talking Points
  • October 28, 2020

Urge Congress to Pass Relief from Pending DSH Cuts and Address Third Party Payment Issue

Without congressional action, devastating cuts to the Medicaid Disproportionate Share Hospital (DSH) payment program will go into effect Dec. 11, 2020, starting with $4 billion in cuts for FY 2021. The cuts increase to $8 billion per year for FY 2022-25. To protect children's health care, Congress needs to take action before that date to prevent these cuts.

Prior to Dec. 11, the House and Senate are expected to negotiate an additional package of Medicaid "extenders." In addition to further DSH cut relief, it is crucial that Congress enact a key Medicaid and CHIP Payment and Access Commission (MACPAC) recommendation on "Medicaid shortfall/third-party payment," which would fix a current CMS policy that has eliminated or significantly reduced many children's hospitals' DSH payments.

Please reach out to lawmakers now, particularly with members of the Senate Finance and House Energy and Commerce Committees, and urge that Congress protect children's access to care by preventing the Medicaid DSH cuts and enacting MACPAC's recommendation. Please utilize the talking points above in your messaging.

CHA contact: John Knapp