As revised by section 1203(b) of the HCERA and section 10201(e)(1) of the Senate Manager’s Amendment, directs HHS to, for each of FYs 2014-2020, reduce federal Medicaid DSH allotments to states with the lowest percentage of uninsured or states that do not target their DSH payments to hospitals with a high volume of Medicaid inpatients and high uncompensated care. Notes that aggregate reductions in DSH allotments for all states amount to:
- $500 million for FY 2014;
- $600 million in each of FYs 2015 and 2016;
- $1.8 billion in FY 2017;
- $5 billion for FY 2018;
- $5.6 billion for FY 2019; and
- $4 billion for FY 2020.
Calls upon HHS to develop a DSH health reform methodology to carry out these reductions, delineating certain considerations that must be contemplated.