AAMC/grr Update

CMS’ Medicaid DSH Final Rule was published in the Federal Register yesterday.  The Federal Register version of the rule can be accessed using the following link: http://www.gpo.gov/fdsys/pkg/FR-2013-09-18/pdf/2013-22686.pdf.  This rule finalizes the methodology that CMS will use to reduce FY 2014 and FY 2015 state Medicaid DSH allotments ($500 million and $600 million in aggregate cuts, respectively) as required by the ACA. CMS will promulgate rules at a later date to implement Medicaid DSH reductions in FY 2016 and beyond.

Here is a link to a CMS fact sheet on the final rule:http://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-Sheets/2013-Fact-Sheets-Items/2013-09-13.html.  Attached is a summary prepared by our consultants, Health Policy Alternatives. 

Please note that while the final rule adopts methodologies for calculating Medicaid DSH allotments to the states, it does not set forth actual state allotments for FY 2014, nor does it include a state-by-state impact analysis or provide illustrative state allotments such as those that were shown in a table in the proposed rule.  CMS has indicated that the Agency anticipates calculating DSH allotments and state specific reductions for FY 2014, but no deadlines have been provided for publishing the allotments.  We will share any additional information with you as soon as it is made available to us.

For questions or more information, please contact Allison Cohen at acohen@aamc.org or 202-862-6085