Premier Urges Congress to Remove Medicaid DSH and Uncompensated Care Cuts from Reconciliation Package

Premier joined seven other national hospital organizations in urging Congressional leaders to remove the reductions to the Medicaid disproportionate share hospital (DSH) program and uncompensated care pools from the latest version of the Build Back Better Act (H.R. 5376).

Congressional Democrats and the White House released an updated framework and legislative text for their social spending legislation that imposes reductions in federal Medicaid DSH Hospital allotments and federal funding for uncompensated care pools for states that fail to expand their Medicaid program. It is estimated the Medicaid DSH cuts affecting hospitals in these states would be between $4.3 billion and $7.8 billion over 10 years (2023-2031). In the future, if a state decides to curtail its Medicaid expansion, its federal DSH allotment also would be reduced.

In a letter, Premier and the other hospital groups asked House Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Chuck Schumer (D-NY) to remove these cuts from any final bill, underscoring the financial hardship they would place on already strained hospitals serving vulnerable communities in non-expansion states—particularly while they continue to lead the fight against the COVID-19 pandemic.