GAO: States Spending More on Medicaid Supplemental Payments

States reported a combined $32 billion in supplemental payments to Medicaid providers in 2010, a substantial increase from 2006, according to a report released Monday by the Government Accountabilty Office (GAO), but incomplete reporting by states means the exact amount isn't known.

Medicaid supplemental payments (which are distinct from typical fee-for-service or managed-care costs) are divided into two categories. Disproportionate share hospital (DSH) payments are intended to offset uncompensated care costs for hospitals that serve more low-income and Medicaid patients, and non-DSH payments go to other health-care providers based on criteria set by state officials, but aren't required by federal law.

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Source: Governing