California Healthline: CMS Outlines Cuts to Hospitals That Treat Low-Income Patients

On Monday, CMS issued a proposed rule detailing a payment reduction mandated under the Affordable Care Act to hospitals that treat a disproportionate share of low-income patients, Modern Healthcare reports.

The Medicaid disproportionate-share hospital payment reductions were developed as an offset for the cost of the ACA’s Medicaid expansion and are based on the assumption that the ACA’s coverage expansions would reduce a larger portion of hospitals’ uncompensated-care costs. The ACA requires $18.1 billion in total reductions from fiscal year 2014 through FY 2020 (Daly, Modern Healthcare, 5/13).

Under the Medicaid expansion, U.S. residents with incomes up to 138% of the federal poverty level would have been eligible for coverage in the program. However, the U.S. Supreme Court’s ruling on the ACA allowed states to opt out of the expansion (California Healthline, 3/15).

Details of Proposed Rule

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  • LAAAC is managed by St. Barnabas Senior Services; Funded, in part, by Archstone Foundation.
  • St. Barnabas Senior Services

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