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GAO-13-876R 1 (2013-09-27)

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G      A     O       U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-325194


September 27, 2013

The Honorable Max Baucus
Chairman
The Honorable Orrin G. Hatch
Ranking Member
Committee on Finance
United States Senate

The Honorable Fred Upton
Chairman
The Honorable Henry Waxman
Ranking Member
Committee on Energy and Commerce
House of Representatives

The Honorable Dave Camp
Chairman
The Honorable Sander Levin
Ranking Member
Committee on Ways and Means
House of Representatives

Subject: Department of Health and Human Services, Centers for Medicare & Medicaid Services:
       Medicaid Program; State Disproportionate Share Hospital Allotment Reductions

Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Department of Health and Human Services, Centers for Medicare &
Medicaid Services (CMS) entitled Medicaid Program; State Disproportionate Share Hospital
Allotment Reductions (RIN: 0938-AR31). We received the rule on September 18, 2013. It was
published in the Federal Register as a final rule on September 18, 2013, with an effective date
of November 18, 2013. 78 Fed. Reg. 57,293.

The final rule delineates a methodology to implement the annual reductions to state Medicaid
Disproportionate Share Hospital (DSH) allotments for fiscal year (FY) 2014 and FY 2015. The
rule also includes additional DSH reporting requirements for use in implementing the DSH
health reform methodology. The Social Security Act (the Act), as amended by the Affordable
Care Act, requires aggregate reductions to state Medicaid DSH allotments annually from FY
2014 through FY 2020.

Enclosed is our assessment of CMS's compliance with the procedural steps required by section
801 (a)(1)(B)(i) through (iv) of title 5 with respect to the rule. Our review of the procedural steps
taken indicates that CMS complied with the applicable requirements.


GAO-13-876R

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