Protect DSH Act
- Bill Number
- H.R. 3581
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Health
- Status
- Introduced
- Latest Action
- 2025-05-23: Referred to the House Committee on Energy and Commerce.
- Last Updated
- 2025-06-16T13:21:12Z
AI-Generated Summary
Purpose of the Legislation
The "Protect DSH Act" (H.R. 3581) aims to postpone scheduled reductions in Disproportionate Share Hospital (DSH) payments under the Medicaid program. DSH payments are additional federal funds provided to hospitals that serve a high number of low-income or uninsured patients, helping these facilities cover uncompensated care costs.
Key Provisions
- Amendment to Section 1923(f) of the Social Security Act:
- In paragraph (7)(A)(i), replaces the reduction period of "2026 through 2028" with "2029 through 2031" and removes certain transitional language.
- In paragraph (7)(A)(ii), updates the same period from "2026 through 2028" to "2029 through 2031".
- In paragraph (8), changes the reference year from "2027" to "2031".
- These changes delay the implementation of DSH payment cuts by several years, maintaining higher funding levels in the interim.
Significant Changes to Existing Law
- The bill modifies the timeline for permanent reductions in DSH allotments (the total funding pool for states to distribute to qualifying hospitals), originally set under the Affordable Care Act and subsequent laws.
- It extends the period before full reductions take effect, effectively preserving current funding levels for DSH hospitals until at least 2031, rather than starting cuts as early as 2026.
Potential Impacts
- On Government Agencies: Increases short-term federal Medicaid spending by delaying reductions, potentially straining the U.S. Department of Health and Human Services budget but providing fiscal relief to state Medicaid programs.
- On Citizens: Benefits low-income and uninsured individuals by supporting hospitals that provide essential care in underserved areas, potentially improving access to services without immediate disruptions.
- On International Relations: No direct impacts, as this is a domestic healthcare funding measure.
Main Stakeholders Affected
- Hospitals: Particularly safety-net hospitals (e.g., urban and rural facilities treating high volumes of Medicaid and uninsured patients) that rely on DSH payments for financial stability.
- States: Medicaid agencies in all states, which allocate DSH funds; delays help states manage healthcare costs for vulnerable populations.
- Low-Income Patients: Individuals covered by Medicaid or seeking uncompensated care, who may experience continued hospital viability.
- Federal Government: Congress and the executive branch, through altered spending projections under the Social Security Act.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces the framework of the Social Security Act by adjusting statutory timelines without altering eligibility criteria for DSH payments; no challenges to constitutional authority, as it falls under Congress's spending power for social welfare programs.
- Political: Could appeal to bipartisan support for protecting healthcare access, but may raise debates over long-term federal budget deficits due to delayed cost savings; the bill's introduction in the House Committee on Energy and Commerce signals focus on healthcare policy priorities.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-05-23: Referred to the House Committee on Energy and Commerce.
- 2025-05-23: Introduced in House
- 2025-05-23: Introduced in House
Bill Versions
- Protect DSH Act — issued 2025-05-23 — PDF (2 pages)