US SB2743

Amends Section 1923(g) of the Social Security Act to modify limits on Disproportionate Share Hospital (DSH) payment adjustments under Medicaid, expanding how uncompensated care costs are calculated to include payments from Medicare (Title XVIII) and applicable third-party plans

Expands the definition of eligible patients for DSH cost calculations to include Medicaid-eligible individuals who also have Medicare or other insurance coverage, provided the hospital's aggregate costs exceed total payments from all sources

Removes a prior exclusion for certain hospital categories from the DSH payment limitation calculations

Applies to Medicaid State plan rate years beginning on or after enactment, with a retroactive provision allowing states to distribute unspent DSH allotments from fiscal years starting October 1, 2021 through enactment

Permits states to retroactively modify State plan amendments to increase hospital DSH payments using unspent allotments, subject to audit deadlines and reporting requirements, while protecting hospitals from recoupment of payments already made under prior rules