HB392 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Jim Barton
Republican
Session: Regular Session 2011
Title: Hospital Funding Program, private hospital assessment and Medicaid funding program extended for fiscal years 2012 and 2013, assessment rate changed, Secs. 40-26B-71, 40-26B-73, 40-26B-75, 40-26B-76, 40-26B-77, 40-26B-79, 40-26B-80, 40-26B-81, 40-26B-82, 40-26B-84, 40-26B-88 am'd. (2011-20394)
Summary: HB392 extends and revises Alabama's private hospital assessment and Medicaid funding program for fiscal years 2012 and 2013, updating how the assessment is calculated and how hospital payments are funded.
What This Bill Does
It extends the private hospital assessment and related Medicaid funding for 2012-2013, using fiscal year 2009 data to calculate net patient revenue and setting an assessment rate around 4.94% (potentially up to 5.14%) with adjustments for extraordinary costs. It changes when quarterly payments are due, updates the outpatient base payment methodology (outpatient payments based on the 2009 schedule plus 6% inflation), and creates the Hospital Assessment Account to fund inpatient and outpatient hospital access payments that total up to the upper payment limit. The act ends automatically on Sept 30, 2013 unless extended and requires federal participation to stay in effect.

Who It Affects
Privately operated hospitals in Alabama: must pay the annual assessment based on net patient revenue (per hospital or collectively for providers with a single Medicaid number) and may receive hospital access payments; payments and rates can be adjusted for extraordinary costs and disputes are handled under tax rules.
Publicly owned/state-owned hospitals: certify public expenditures, receive Medicaid base payments and hospital access payments, and participate in the Hospital Assessment Account as part of funding for inpatient/outpatient services.

Key Provisions
Extends the private hospital assessment and Medicaid funding program for fiscal years 2012 and 2013.
Uses fiscal year 2009 net patient revenue as the basis for the 2012-2013 assessment calculation.
Sets the assessment rate at 4.94% (with potential adjustment to 5.14% for extraordinary costs) of net patient revenue, and allows rate changes for extraordinary cost events with certification by August 31, 2012 for the 2013 period.
Adjusts the initial and subsequent quarterly payment timing (initial payment after CMS approvals and verification period; later payments due on the first 10 business days of each quarter).
Updates outpatient base payments for 2012-2013 to reflect the 2009 outpatient schedule plus a 6% inflation factor.
Creates the Hospital Assessment Account to hold funds for inpatient and outpatient hospital access payments; funds are separate from the General Fund and used only for access payments or to reimburse mistakes; balances may be retained or refunded depending on conditions.
Provides hospital access payments that, in aggregate, equal the upper payment limit for inpatient and outpatient services; payments occur quarterly for inpatient and on a regular basis for outpatient; not used to offset other Medicaid payments.
Allows refunds or rate reductions if federal participation is not available or if the assessments are deemed impermissible taxes; the act terminates automatically on Sept 30, 2013 unless extended.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Hospitals