Barrasso Bill Addresses Rural Funding for Hospitals

U.S. Senator John Barrasso recently reintroduced bipartisan legislation that would fix unfair funding issues for rural hospitals. The “Fair Funding for Rural Hospitals Act” would establish a nationwide federal funding minimum for disproportionate share hospitals (DSH). Current payment levels are based on a 1992 formula that has seen few updates and has assigned Wyoming the lowest payments of any state in the nation. In 2023, Wyoming’s DSH funding totaled $300,000, while the second-lowest state received $11 million.

The bill establishes a federal floor of $20 million per state for the Medicaid DSH program, which will then grow at a “low” DSH percentage inflation rate after the first five years. The legislation also Increases DSH funding to Delaware, Hawaii, Montana, North Dakota, South Dakota, and Wyoming.

Senator Barrasso said Wyoming’s hospitals serve more Medicaid and low-income patients than other states, but Wyoming’s share of funding hasn’t caught up for decades. Barrasso added that this legislation will fix outdated funding issues for hospitals across Wyoming and rural America.