CMS To Cut Billions In Aid To Hospitals That Care For Nation's Most Vulnerable Populations

The cuts, which are focused on what's known as disproportionate-share hospital funds meant to help hospitals with uncompensated care costs, were supposed to start in 2014 under the Affordable Care Act but have been delayed. The reductions were put in place because the ACA's coverage expansions were expected to reduce the demand for such charity care. But many institutions face tabs for uncompensated care that exceed those projections.

Starting this October, the CMS could begin cutting billions in federal funds meant to help hospitals with uncompensated care costs. The Affordable Care Act mandated that Medicaid disproportionate-share hospital funds be cut by $43 billion between fiscal years 2018 and 2025. (Dickinson, 7/27)

While the U.S. Congress continues to debate the future of Obamacare and Medicaid, Minnesota’s safety net clinics worry that they will lose $27 million in federal aid that helps pay for health care of the uninsured. Unless Congress acts by October to renew the funding, Minnesota’s 17 safety net providers would have to cut services and possibly close some of the more than 70 clinics across the state. (Howatt, 7/27)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.

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