HB696 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Jim Barton
Republican
Session: Regular Session 2012
Title: Medicaid, nursing facilities, monthly surcharge from May 20, 2012, until August 31, 2013, Secs. 40-26B-21, 40-26B-22 am'd
Summary: HB696 creates a temporary per-bed monthly surcharge on nursing facilities to fund Medicaid-related costs, extends a zero-inflation period for reimbursements, and adjusts how these costs influence per diem rates.
What This Bill Does
From May 20, 2012 to August 31, 2013, it adds a monthly surcharge per licensed nursing facility bed (initially 131.25 dollars, reduced to 43.75 dollars starting September 20, 2012) in addition to the existing privilege assessment. The supplement is treated as an allowable cost and used to adjust Medicaid per diem rates. It also extends a zero-percent inflation factor when computing overall rates and directs how the affected revenues are collected, deposited, and used within the Medicaid system.

Who It Affects
Nursing facilities in Alabama will pay the new monthly surcharge per bed and have these charges treated as allowable costs in Medicaid rate calculations.
The Alabama Medicaid Agency and related state funds (such as the Alabama Health Care Trust Fund) will collect the surcharge, adjust facility per diem rates, and manage funding and administrative costs.

Key Provisions
Imposes a supplemental monthly surcharge on nursing facilities beginning May 20, 2012 and ending August 31, 2013, with an initial surcharge of $131.25 per bed per month, reduced to $43.75 per bed per month starting September 20, 2012.
The supplemental surcharge is in addition to the existing privilege assessment; total privilege assessments and surcharge are treated as allowable costs and included in Medicaid per diem rate calculations.
Medicaid per diem rate adjustments will reflect the increased assessments using the same mechanisms and dates used for the base privilege assessment (October 1, 2011 for privilege assessment, May 1, 2012 for surcharge).
From October 1, 2011 through September 30, 2013/2014, the inflation factor used to compute overall rates is set to zero percent.
Revenues from the privilege assessments are deposited into the Alabama Health Care Trust Fund or its successor, with appropriations for the Medicaid agency and an initial administrative deduction of up to 1% of revenues in the first year (and governed thereafter by appropriation).
No revenues from the privilege assessment will be reduced or eliminated while the assessment is in effect.
The bill allows for a special reimbursement model for enhanced care in dedicated ventilator units in rural facilities if federal funds and program requirements permit.

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