Strengthening DSH and Medicare Through Subsidy Recapture and Payment Reform Act of 2015

This bill amends title XVIII (Medicare) of the Social Security Act to alter the method of determining disproportionate share hospital (DSH) payments under the Medicare program. (DSH payments compensate hospitals for the higher operating costs they incur in treating a large share of low-income patients.) The Centers for Medicare & Medicaid Services (CMS) must estimate the aggregate amount of payments to be made for each fiscal year; if the estimated amount exceeds $3.3 billion, then each DSH payment shall be made according to its ratio to that limit.

CMS must make supplementary DSH payments to certain hospitals located in Alabama, Florida, Georgia, Idaho, Kansa, Louisiana, Maine, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wisconsin, or Wyoming.

The bill also amends the Internal Revenue Code to modify provisions related to overpayments made to taxpayers for tax credits under the Patient Protection and Affordable Care Act (PPACA). Under current law, if the advance payments to a taxpayer for premium tax credits under PPACA exceed the allowable credit, the tax imposed shall be increased by the amount of such excess, subject to certain income-based limitations. The bill eliminates these income-based limitations.