MedPAC
MedPAC this week recommended replacing the Medicare DSH patient adjustment percentage for Medicare hospital payment purposes. The 340B program uses the same calculation as one of its hospital eligibility criteria.

MedPAC’s Call to Replace Medicare DSH Formula Could Spill Over into 340B

Congressional Medicare advisers yesterday formally recommended replacing the formula Medicare uses to distribute extra payments to safety net hospitals that disproportionately serve low-income and/or uninsured beneficiaries.

The 340B program uses the same calculation—the Medicare disproportionate share adjustment percentage—to determine eligibility for five of the six kinds of hospitals that participate in 340B. The Medicare Payment Advisory Commission says if Medicare stops using the DSH formula and starts using its proposed new Medicare Safety-Net Index (MSNI), nothing will stop the 340B program from still using the DSH formula.

Congressional Medicare advisers yesterday formally recommended replacing the formula Medicare uses to distribute extra payments to safety net hospitals that disproportionately serve low-income and/or uninsured beneficiaries.

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