To amend title XVIII of the Social Security Act to carve out from payments to Medicare+Choice organizations amounts attributable to disproportionate share hospital payments and pay such amounts directly to those disproportionate share hospitals in which their enrollees receive care.

Amends title XVIII (Medicare) of the Social Security Act, as amended by the Balanced Budget Act of 1997, to: (1) remove from payments to Medicare+Choice organizations those amounts attributable to disproportionate share hospital (DSH) payments; and (2) direct the Secretary of Health and Human Services to make direct payments to a DSH for any individual who is enrolled under a risk-sharing contract with an eligible organization and entitled to benefits under Medicare part A (Hospital Insurance) or who is enrolled with a Medicare+Choice organization under Medicare part C (Medicare+Choice).