H.R. 3581: Protect DSH Act

This bill, titled the **Protect DSH Act**, proposes changes to the payment reductions for disproportionate share hospitals (DSH) under the Medicaid program. The primary purpose of the bill is to delay specific reductions in payments that were set to occur between the years **2026 and 2028**, and instead push those reductions to a later timeframe, specifically between **2029 and 2031**.

Key Provisions

• The bill amends Section 1923(f) of the Social Security Act.
• It modifies specific clauses related to the timing of payment reductions imposed on DSH hospitals, ensuring that these reductions do not take effect until later years.
• By delaying the reductions, the bill aims to provide financial stability for hospitals that serve a significant number of Medicaid patients and are financially vulnerable.

The legislation aims to address the financial pressures faced by these hospitals, which often struggle with providing care to low-income populations while managing operational costs. The adjustments proposed by this bill aim to give these institutions more time to prepare for potential changes in their funding structure.

Impact on Disproportionate Share Hospitals

• Disproportionate share hospitals are essential for providing care to underserved communities.
• By delaying payment reductions, these hospitals may maintain better financial health in the immediate future, allowing them to continue serving their patient populations effectively.

Next Steps

The bill was introduced in the House of Representatives and referred to the Committee on Energy and Commerce for further consideration. If passed, it would provide crucial support to DSH hospitals by giving them additional time to adjust to funding changes.

Relevant Companies

• None found