The Protect DSH Act delays scheduled payment cuts to disproportionate share hospitals (DSH) under Medicaid, which are hospitals that serve a large number of low-income and uninsured patients. Rather than implementing reductions in 2026-2028 as currently scheduled, the bill pushes these cuts back to 2029-2031, and moves another reduction deadline from 2027 to 2031. Disproportionate share hospitals, primarily located in underserved rural and urban areas, depend heavily on Medicaid funding to offset the costs of treating uninsured and low-income patients. This legislation gives these hospitals several additional years before facing the budget cuts mandated under existing law. The bill does not specify new funding amounts but effectively preserves current payment levels at these hospitals for a longer period.
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