Issue Brief 16-52
October 27, 2016

On October 26, the Centers for Medicare & Medicaid Services (CMS) published a notice in the Federal Register that provides preliminary fiscal year (FY) 2016 disproportionate share hospital (DSH) allotments, and final FY 2014 allotments. (Preliminary FY 2015 allotments were released in February.)

Overall, the preliminary FY 2016 DSH allotments are $36 million more than FY 2015. This increase is relatively small because of the estimated 0.3% increase in the consumer price index for all urban consumers (CPI-U), which is the main factor used to determine the allotments. Initially, states were expected to see significant reductions in DSH payments under the Affordable Care Act (ACA) beginning in FY 2014. However, these cuts have been delayed multiple times, most recently until FY 2018.