The Centers for Medicare and Medicaid Services (CMS) published the Supplemental Security Income (SSI) percentages for federal fiscal year 2024. This ratio will apply to cost report years beginning on or after Oct. 1, 2023, and prior to Oct. 1, 2024. Nationally, the overall FFY24 IPPS SSI ratio decreased 0.12% from the FFY23 SSI ratio. However, we’ve observed significant fluctuations on a hospital-by-hospital basis.
As a key component of the Medicare Disproportionate Share Hospital (DSH) calculation, these ratios are crucial for hospitals aiming to qualify for various financial assistance programs, including empirically justified DSH payments, the uncompensated care program (UCC), and potential cost savings through the 340B Drug Pricing Program.
The SSI percentage has played a significant role in 340B qualification. Providers must carefully evaluate how their inpatient Medicaid and SSI patient days have changed since the last release. This evaluation is even more important for FFY24 because the One, Big, Beautiful Bill (OBBB) introduces regulatory changes that directly affect Medicaid redeterminations and shortens retroactive Medicaid coverage windows. As states implement these provisions, many hospitals are likely to see additional Medicaid day losses, placing even more organizations at risk of losing 340B eligibility or facing narrowed margins. These OBBB‑driven shifts make ongoing monitoring of Medicaid eligibility processes and inpatient coverage determinations a critical component of FFY24 SSI analysis.
What should you do with this information?
- Review the FFY24 SSI ratio compared to the previous years to estimate the impact on Medicare DSH reimbursement. Identify any significant changes that could affect financial planning and budgeting.
- Determine if the latest ratio changes your hospital’s ability to qualify for the 340B program. By leveraging the latest SSI data, you can better assess your hospital’s eligibility for, or potential loss of, 340B savings.
- Investigate whether realigning your hospital’s SSI data reporting or patient categorization could optimize your DSH adjustment.
Take a closer look at how the SSI data directly affects your inpatient prospective payment system or rehabilitation facilities.
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