Examining the Policy Implications of Medicaid Non-Disproportionate Share Hospital Supplemental Payments

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March 2014

MACPAC is charged with examining all aspects of Medicaid payment and the relationships between payment, access, and quality of care, and it has begun to take a closer look at states’ payments to providers and their methods for determining them. Medicaid fee-for-service (FFS) non-disproportionate share (DSH) supplemental payments and the health care related taxes that states have used, in part, to finance these payments merit closer attention. Non-DSH supplemental payments account for more than 20 percent of total Medicaid FFS payments to hospitals nationally and more than 50 percent in some states.

However, non-DSH supplemental payments are not reported to the federal government at the provider level in a readily usable format. In Chapter 6 of MACPAC’s March 2014 report, the Commission recommends that the Secretary of the U.S. Department of Health and Human Services collect provider-level non-DSH supplemental payment data in order to gain a meaningful understanding of states’ approaches to financing their Medicaid programs. Read more about non-DSH supplemental payments and how they contribute to Medicaid financing.

Publication Type: Reports to Congress

From: March 2014 Report to the Congress on Medicaid and CHIP

Tags: data, fee for service, financing, hospitals, managed care, nursing facilities, payment, supplemental payments, Upper Payment Limit (UPL)