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B-331465 1 (2019-10-16)

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


B-331465


October 16, 2019

The Honorable Chuck Grassley
Chairman
The Honorable Ron Wyden
Ranking Member
Committee on Finance
United States Senate

The Honorable Frank Pallone, Jr.
Chairman
The Honorable Greg Walden
Ranking Member
Committee on Energy and Commerce
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-AS63). The House of Representatives received the rule on September 25, 2019. 165 Cong.
Rec. H8092 (daily ed. Oct. 4, 2019). The Congressional Record does not reflect the date of receipt by
the Senate. We received the rule on October 1, 2019. It was published in the Federal Register as a final
rule on September 25, 2019. 84 Fed. Reg. 50308. The effective date of the rule is November 25, 2019.

This final rule establishes the Disproportionate Share Hospital (DSH) Health Reform Methodology
(DHRM) for the 2020 fiscal year. It also defines total hospital cost and clarifies state data submission
requirements. Under this rule CMS will use the total estimated Medicaid service expenditures in the
calculation of the Low DSH Adjustment Factor. The rule adjusts the weighting of statutorily defined
factors required to be included in the DHRM. Finally, this rule removes reference to certain fiscal years.

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. If you have any questions about this report or
wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule,
please contact Janet Temko-Blinder, Assistant General Counsel, at (202) 512-7104.


       signed
Shirley A. Jones
Managing Associate General Counsel

Enclosure

cc: Calvin E. Dukes II
    Regulations Coordinator
    Department of Health and Human Services

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