The Centers for Medicare & Medicaid Services today issued a final rule addressing how third-party payments are treated when calculating the hospital-specific limitation on Medicaid disproportionate share hospital payments. According to CMS, the final rule clarifies current policy that uncompensated care costs for Medicaid-eligible individuals include only those that remain after accounting for payments hospitals receive by or on behalf of Medicaid-eligible individuals, including Medicare and other third-party payments that compensate the hospitals for care furnished to such individuals. The agency issued its original policy in sub-regulatory guidance. In a comment letter last year on the proposed rule, the AHA called for CMS to withdraw the proposed rule, which it said was “substantive and establishes new policy, specifically with the intent of avoiding potentially unfavorable federal district court rulings.” The final rule comes on the heels of a federal court decision that permanently barred CMS from using sub-regulatory guidance to calculate Medicaid DSH payments for New Hampshire hospitals. AHA supported the plaintiff’s arguments in that case. AHA members will receive more information on the final rule. 

Related News Articles

Headline
The Medicaid and CHIP Payment and Access Commission (MACPAC) June 11 released its June report to Congress. The first chapter focuses on improving the…
Headline
A report released May 29 by the Government Accountability Office found a lack of state oversight on Medicaid managed care plans’ use of prior authorization for…
Headline
The Centers for Medicare & Medicaid Services is seeking public comments until July 22 on the information requirements associated with attestation…
Headline
The Centers for Medicare & Medicaid Services recently announced the approval of Delaware and Tennessee as the first states to provide diapers to children…
Headline
The Centers for Medicare & Medicaid Services May 9 announced an extension of unwinding flexibilities to support state efforts to protect the continuity of…
Headline
The departments of Health and Human Services, Labor, and the Treasury May 1 released a new process for resubmitting disputes under the No Surprises Act…