MO files suit to block US from recouping overpayments made to hospitals

Missouri is suing the federal government to avoid having to recoup nearly $162 million in alleged Medicaid overpayments made to some hospitals across the state. The lawsuit, filed Aug. 17 in the District of Columbia, seeks an injunction to block the federal government from using a calculation that shows excess payments were made to cover hospital costs of poor patients. The dispute stems from an ongoing disagreement about Medicaid payments made to hospitals for what is called disproportionate share hospital, or DSH, funding. DSH funding is designed to help offset the cost for hospitals who treat a large number of Medicaid and uninsured patients.