CONCORD – It was announced yesterday that the State of New Hampshire recently reached an agreement with the federal Centers for Medicare and Medicaid Services (CMS) to repay a disallowance of $35 million in federal funds claimed by the NH Medicaid program in 2004.

This disallowance, the subject of a long-running dispute between the state and federal government, involves the New Hampshire Medicaid Disproportionate Share Hospital (DSH) payment program.

New Hampshire hospitals did not benefit from the federal funds received by the State of New Hampshire for the DSH program. Rather, it was the state’s general fund that benefitted from these federal dollars. As such, hospitals should in no way be expected to contribute to the repayment of this disallowance.

Hospitals are still suffering as a result of the budget enacted this past summer that cut over $250 million in Medicaid reimbursements, the vast majority of which come from the imposition of the Medicaid Enhancement Tax (MET) and elimination of DSH payments to half of the hospitals in New Hampshire.