SB388 Alabama 2011 Session

Summary

Primary Sponsor

Tammy Irons

Democrat

Co-Sponsors

William “Bill” M. BeasleyRodger SmithermanHank SandersRoger Bedford, Jr.Linda Coleman-MadisonPriscilla DunnGeorge M. “Marc” KeaheyDick Brewbaker

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.

Summary

Extends Alabama's private hospital assessment and Medicaid funding program for FY 2012-2013, with changes to the base year, assessment rate, payment timing, and outpatient payment methods.

What This Bill Does

If enacted, the bill extends the Hospital Funding Program for fiscal years 2012 and 2013, uses 2009 as the base year for calculations, and sets the private hospital assessment rate at 4.94% for those years (with adjustments for extraordinary cost events). It changes when quarterly payments are due and updates the base payment method for outpatient services. It also creates a Hospital Assessment Account to fund hospital access payments up to the upper payment limit, subject to federal funding and eventual sunset unless extended by future legislation.

Who It Affects

• Privately operated hospitals: must pay the quarterly hospital assessment (rate 4.94% for 2012-2013 based on 2009 net patient revenue) and follow related payment rules, including possible penalties for late payments and adjustments if extraordinary costs occur.
• Medicaid program and hospitals receiving hospital access payments: funds come from the Hospital Assessment Account to provide inpatient and outpatient access payments up to the upper payment limit, with payments contingent on CMS approval and federal matching; refunds or adjustments may occur if expenditures fall or federal rules change.

Key Provisions

• Extends the private hospital assessment and Medicaid funding program for fiscal years 2012 and 2013.
• Sets base year for calculations to fiscal year 2009 and adjusts the assessment rate to 4.94% for 2012-2013 (with potential increases if extraordinary costs occur).
• Reschedules the due date for quarterly assessments and delays the initial installment until CMS approvals and related waivers are in place.
• Updates the base payments for outpatient services to use the 2009 data plus a 6% inflation factor.
• Creates and funds the Hospital Assessment Account in the Health Care Trust Fund to finance inpatient and outpatient hospital access payments up to the upper payment limit; outlines balance handling, refunds, and dependency on federal funding.
• Requires inpatient and outpatient hospital access payments to be made and specifies payment timing (inpatient quarterly; outpatient monthly/quarterly), with restrictions on offsetting other Medicaid payments.
• Provides conditions under which the assessment could cease or be refunded, including changes in expenditures, federal funding, or impermissible taxes, and automatic termination on September 30, 2013 unless extended.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Hospitals