On July 27th, CMS issued a proposed rule that would implement $43 billion in Medicaid DSH payment reductions between federal FYs 2018 and 2025. Legislation has subsequently delayed the cuts, most recently until September 30, 2017. Should the current proposal be implemented, CMS estimates that based on 2017 data New York would see DSH payment cuts of nearly $330 million, or 18.7%, in FY 2018.
CMS will accept comments on the rule until August 28th. A short summary of the rule is attached. The full proposed rule is available here.