S-2743 : Still Just a Bill


The Save Our Safety-Net Hospitals Act of 2025 (S.2743) proposes modifications to the Medicaid program regarding disproportionate share hospital (DSH) payment adjustments. These adjustments are intended to support hospitals that serve a large number of low-income patients.

Key provisions of the bill include:

  • Revised Calculation of Hospital-Specific Limits: The bill modifies the formula for calculating hospital-specific DSH payment limits. It specifies that payments made by Medicare (Title XVIII) and applicable health plans are included in the calculation of a hospital's uncompensated care costs.
  • Inclusion of Certain Medicaid Beneficiaries: It includes individuals eligible for Medicaid who also have Medicare or other applicable health plan coverage in the calculation, but only if the hospital's costs exceed payments from Medicaid, Medicare, and other applicable plans.
  • State Option for Unspent Funds: For certain prior years, states have the option to distribute unspent DSH allotments from prior years, provided the payment adjustments align with the bill's amended guidelines and do not exceed the state's DSH allotment.
  • Retroactive State Plan Modifications: States may retroactively modify Medicaid state plan provisions to allow for increases to a hospital for a Medicaid state plan rate year.

The changes would be effective for Medicaid state plan rate years beginning on or after the enactment date of the Act.

Action Timeline

Action DateTypeTextSource
2025-09-09IntroReferralRead twice and referred to the Committee on Finance.Senate
2025-09-09IntroReferralIntroduced in SenateLibrary of Congress

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