MATSUI AND COLLEAGUES LEAD BIPARTISAN BILL TO PREVENT MEDICAID CUTS TO HOSPITALS

WASHINGTON, D.C.- Congresswoman Doris Matsui (D-CA) and Reps. Nick LaLota (R-NY), Yvette Clarke (D-NY), Larry Bucshon, M.D. (R-IN), Mike Lawler (R-NY), and Frank Mrvan (D-IN), introduced the bipartisan Save Our Safety-Net Hospitals Act to prevent massive cuts to America's hospitals' Medicaid payments.

Medicaid Disproportionate Share Hospital (DSH) funding helps preserve access to care at hospitals and health systems that serve the most vulnerable populations. Many hospitals rely on this funding to remain operational-but DSH caps determine the maximum amount of federal Medicaid DSH funding a hospital can receive. The amount of capped DSH funding has traditionally been based on the financial losses from services provided to uninsured patients, Medicaid enrollees and dual-eligible enrollees (Medicaid patients who also have Medicare or other third-party coverage).

This legislation defines the Medicaid shortfall component of the DSH cap to include costs and payments for (a) patients for whom Medicaid is the primary payer, plus (b) unreimbursed costs associated with Medicare duals (if any), plus (c) unreimbursed costs associated with all other duals (if any).

"Achieving health equity requires that our most underserved patients can access high-quality care," said Congresswoman Matsui. "Low-income older Americans are some of our most medically vulnerable patients-and safety net hospitals are on the front lines of serving this population. This bill will ensure this population can continue to access vital care, while maintaining a sustainable future for these essential providers."

"New York's safety-net hospitals, like Stony Brook University Hospital, are the backbone of our healthcare system, providing essential care to our most vulnerable communities. The potential $53 million cut in Medicaid funding threatens the very foundation of these institutions," said Congressman LaLota. "My bipartisan Save Our Safety-Net Hospitals Act would prevent massive cuts to the nation's most vulnerable hospitals without any cost to the taxpayer and ensure they can continue to deliver critical services. This is a bipartisan and common-sense fix to an issue directly impacting hospitals on Long Island and safeguards healthcare access for those who need it most, ensuring that no one is left behind due to bureaucratic oversights."

"New York's safety net hospitals are an invaluable resource for our state's most vulnerable patients, and Medicaid DSH funding is necessary for keeping their operations running," said Congresswoman Clarke. "We cannot stand by as devastating funding cuts loom and threaten the health, wellbeing, and futures of the millions of New Yorkers who rely on these vital hospitals to access the healthcare services they need. I am proud to stand with my colleagues across the aisle in support of a solution that will keep their doors open and protect the underserved patients they care for. The time to pass the SOS Hospitals Act is now."

"Safety net hospitals in Indiana and across the nation help care for the most vulnerable patients. As a physician, I know how critical these facilities are, particularly in rural and underserved urban communities," said Congressman Bucshon. "It is critical that these safety net hospitals have the resources they need to provide care for these patients, and Congress must work to ensure the federal government is appropriately providing the resources necessary to support the important work that they do."

"Hospitals that serve our most vulnerable populations are facing deep and unnecessary cuts, including hospitals right here in the Hudson Valley," said Congressman Lawler. "We cannot let that happen and that's why I'm proud to join my colleagues in introducing the Save our Safety-Net (SOS) Hospitals Act. This common-sense legislation will ensure these hospitals continue to receive the funding they are due so patients can continue to receive care at these facilities."

"Thank you to Rep. LaLota and my House colleagues for introducing this legislation to ensure that everyone in our communities has access to the health care services they need," said Congressman Mrvan. "I look forward to continuing to work with all of my House and Senate colleagues to finalize this worthwhile initiative as soon as possible."

"We strongly support legislation introduced today to correct a federal policy that harms the ability of many essential hospitals to recover financial losses they sustain caring for dually eligible Medicaid patients. The Save Our Safety-Net Hospitals Act of 2024 would lift burdensome restrictions on the disproportionate share hospital (DSH) support essential hospitals receive to offset the uncompensated costs of care for patients dually eligible for Medicaid and Medicare or other third-party insurance," saidBruce Siegel, M.D., President and CEO of America's Essential Hospitals. "We thank the bill's sponsors-Reps. Nick LaLota (R-N.Y.), Yvette Clarke (D-N.Y.), Larry Bucshon (R-Ind.), Doris Matsui (D-Calif.), Mike Lawler (R-N.Y.), and Frank Mrvan (D-Ind.)-for their bipartisan leadership in introducing this critically needed legislation. DSH payments are a vital part of the patchwork support essential hospitals rely on to meet their safety net mission. We urge all members of Congress to support the Save Our Safety-Net Hospitals Act and protect access to high-quality, equitable health care for all people and communities."

"Medicaid DSH payments are a lifeline for many safety-net hospitals and the Save our Safety-Net Hospitals Act recognizes the uncompensated costs incurred by the hospitals serving patients who are dually-eligible for both Medicare and Medicaid," said Ellen Kugler, Executive Director of the Alliance of Safety-Net Hospitals. "The Alliance of Safety-Net Hospitals appreciates Rep. LaLota's leadership and is proud to support the Save our Safety-Net Hospitals Act."

To read the full text of the legislation, click HERE.

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