Senator Reverend Warnock and 50 bipartisan colleagues urged Senate leadership to act to avert impending cuts to the Medicaid Disproportionate Share Hospital (DSH) program.

Medicaid Disproportionate Share Hospital (DSH) program offsets costs for hospitals that provide care to large numbers of uninsured and underinsured patients

If no action is taken before October 1, 2023, the program faces $8 billion in cuts nationwide, which could threaten access to care across the country. The DSH program allocated $336 million to Georgia for Fiscal Year 2023 

The Senator’s efforts are supported by the Georgia Hospital Association, CHI Memorial Hospital, and Trinity Health, which owns multiple community health centers in Georgia

Washington, D.C. — U.S. Senator Reverend Raphael Warnock (D-GA) joined 50 bipartisan colleagues in urging Senate leadership to act to avert impending cuts to the Medicaid Disproportionate Share Hospital (DSH) program. Medicaid Disproportionate Share Hospital (DSH) program offsets costs for hospitals that provide care to large numbers of uninsured and underinsured patients. If no action is taken before October 1, 2023, the program faces $8 billion cuts nation-wide, which could threaten access to care across the country. The DSH program allocated $336 million to Georgia for Fiscal Year 2023. The Senator’s efforts are supported by the Georgia Hospital Association, CHI Memorial Hospital, and Trinity Health, which owns multiple community health centers in Georgia. The Senator’s efforts were joined by Senator Bob Casey (D-PA) and Senator James Lankford (R-OK). 

“Cuts of this magnitude could undermine the financial viability of hospitals, threatening access to care for the most vulnerable Americans,” wrote the Senators. “It is essential that we continue to protect those who have come to rely on the services provided by Medicaid DSH hospitals. We ask you to act as soon as possible to address the Medicaid DSH cuts to ensure our nation’s hospitals can continue to care for every community.” 

The Medicaid DSH program was created in 1981 to help offset uncompensated care costs for hospitals that provide care to large numbers of Medicaid beneficiaries and uninsured patients. The Affordable Care Act (ACA) required reductions to the Medicaid DSH program over time, beginning in fiscal year (FY) 2014, with the goal that the law would increase health insurance coverage and hospitals would no longer need additional payments to offset uncompensated care costs. Those coverage levels have still not been fully realized, especially in Georgia where Medicaid has not been fully expanded, and these hospitals continue to care for uninsured and underinsured patients. Congress has acted in a bipartisan manner on multiple occasions over the last eleven years to avert the Medicaid DSH cuts.

Senator Warnock is a steadfast champion of bolstering health care access for all Georgians. As a pastor and legislator, Senator Warnock has consistently worked on the front lines in the fight to expand Medicaid and close the Medicaid coverage gap in Georgia as well as in the nine other holdout states. The Senator also successfully capped the cost of insulin for seniors and is working to make insulin affordable for all Georgians. He recently introduced bipartisan legislation that would help curb hospital closures in rural communities and is urging the Department of Health and Human Services (HHS) to take action and address short-term limited duration insurance plans, or junk plans, which fail to provide comprehensive health insurance coverage. Additionally, last December, Senator Warnock secured $746 million in federal funding for teaching hospitals in Georgia to expand and strengthen the health care workforce, including communities with health care workforce shortages. 

Read the letter here or below: 

Dear Majority Leader Schumer and Leader McConnell: 

We write to request that you address impending cuts to the Medicaid disproportionate share hospital (DSH) program, which are scheduled to be enacted on October 1, 2023. These cuts will equate to $8 billion in reductions in FY2024 alone. The Medicaid DSH program keeps many hospitals financially viable and able to provide care to vulnerable individuals. Drastic cuts to this program could lead to a reduction in access to care for those who need it most. 

The Medicaid DSH program was created in 1981 to help offset uncompensated care costs for those hospitals that provide care to large numbers of Medicaid and uninsured patients. These hospitals provide critical services and serve as economic and health care anchors in their communities, as has been recently demonstrated during both natural disasters as well as the COVID-19 pandemic. 

The Patient Protection and Affordable Care Act required reductions to the Medicaid DSH program over time, beginning in fiscal year (FY) 2014, with the goal that the law would increase health insurance coverage and hospitals would no longer need additional payments to offset uncompensated care costs. Those coverage levels have not been fully realized yet these hospitals continue to care for uninsured and underinsured patients. 

Congress has acted in a bipartisan manner on multiple occasions over the last eleven years to avert the Medicaid DSH cuts. We ask you to continue this effort and act before these reductions take place. Without legislative action, the Centers for Medicare & Medicaid Services will move forward with the Medicaid DSH reductions and our hospitals will incur an $8 billion cut in payments for FY 2024 and $8 billion for each of the next three years to follow. Cuts of this magnitude could undermine the financial viability of hospitals, threatening access to care for the most vulnerable Americans. It is essential that we continue to protect those who have come to rely on the services provided by Medicaid DSH hospitals. 

We ask you to act as soon as possible to address the Medicaid DSH cuts to ensure our nation’s hospitals can continue to care for every community. 

Thank you for your consideration. 

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