Medicaid payment policies are developed by each state, with federal review limited to the general principles set forth in Section 1902(a)(30)(A) of the Social Security Act. In some cases, states make payments to providers above what they pay for individual services. These additional payments include disproportionate share hospital (DSH) payments and supplemental payments, based on the difference between Medicaid payments for services and the maximum amount allowed under the Upper Payment Limit (UPL) for those services.
This issue brief explains how such payments are made and policy issues concerning their use.
Publication Type: Issue Briefs