Some Details of “Safety Net” cuts in the Governor’s Budget
- Reduces hospital disproportionate share (DSH) funding. In 2012, hospitals received DSH payments of $268.4; in 2014, hospitals will receive DSH payments of $134.2 million; and in 2015, hospitals will receive no DSH payments.
- Reduces hospital inpatient supplemental payments. In 2012, hospitals received $131 million in inpatient supplemental payments; in 2014 and 2015, hospitals will receive inpatient supplemental payments of $80.6 million.
- Eliminates Administrative Service Organization (ASO) transition supplemental payments by a cut of $27 million in 2013, and $22.7 million in 2014 and 2015.
- Reduces the fee schedule for certain services (reduces reimbursement for medical equipment, devices, supplies, and laboratory; hospice services; community-based physicians when the services are provided in a hospital or ambulatory surgery center; and eliminates reimbursement for non-emergency ambulance services) under the Medicaid program for a reduction of $7.7 million in FY 2014 and $7.8 million FY 2015.
- Eliminates incentive payments and enhanced reimbursement to Federally Qualified Health Centers under the Patient-Centered Medical Homes, for a reduction of $5.3 million in FY 2014 and $7.3 million in FY 2015.
- Reduces funding for non-emergency medical transportation by $5.4 million in FY 2014 and FY 2015.
- Moves certain adults in the Medicaid program to the Connecticut Health Insurance Exchange, for a savings of $6 million in FY 2014 and $60 million in FY 2015.
- Restructures behavioral health reimbursement to certain behavioral health providers, for a reduction of $4 million in FY 2014 and $5 million in FY 2015.