Treatment of Third Party Payers (TPP) in Calculating Uncompensated Care Costs (UCC) Medicaid Informational Bulletin

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Today, the Centers for Medicare & Medicaid Services (CMS) released a Medicaid Informational Bulletin providing states with guidance on how they can treat certain third party payments (TPP) for Medicaid eligible or uninsured individuals when reporting data to the Agency. These TPPs factor into the Uncompensated Care Costs (UCC) data that is used by CMS when calculating the hospital-specific DSH limits for Medicaid Disproportionate Share Hospital (DSH) payments.

This bulletin outlines the two methods that CMS is recommending for states, and emphasizes the Agency’s commitment to providing technical assistance to our state partners to ensure they have the resources they need for this reporting process.

• CIB: Treatment of Third Party Payers (TPP) in Calculating Uncompensated Care Costs