SB 249 (2025)

Revises the funding mechanism for uncompensated care costs under the state Medicaid program, including the distribution of disproportionate share hospital payments. In other words, this bill addresses the funding hospitals receive for providing uncompensated care to low income patients. This bill sends 80% of the funds to hospitals and 20% of the funds to community health centers, mental health centers and substance abuse treatment programs. This is a lower percentage than hospitals received in the past.

The Senate amended the bill, increasing the share of funds going to hospitals to 91%. The amended the bill also establishes a committee to study the Medicaid enhancement tax and disproportionate share hospital payments.