HB562 Alabama 2013 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Steve ClouseRepresentative
Republican
Session: Regular Session 2013
Title: Nursing facilities, supplemental privilege assessment and monthly surcharge extended, expiration under certain conditions, Sec. 40-26B-21 am'd.
Summary: HB562 extends the nursing facility privilege assessment, supplemental privilege assessment, and monthly surcharge through August 31, 2015, and updates related Medicaid reimbursement provisions.
What This Bill Does
It extends the current supplemental privilege assessment and monthly surcharge to 2015. It keeps the per-bed privilege assessment rate at $1,899.96 and details the supplemental assessment and monthly surcharge amounts (including the initial $131.25 monthly surcharge and the later reduction to $43.75 per month). It requires these assessments to be treated as allowable costs for Medicaid nursing facility reimbursements and to be reflected in Medicaid per diem rates, with adjustments made as needed; it also includes a cap provision that could trigger rate reductions to keep total assessment-related revenues under 6% of facility revenues in a fiscal year. The act takes effect immediately after passage and approval by the Governor.

Who It Affects
Nursing facilities in Alabama, which will continue paying the privilege assessment, supplemental privilege assessment, and monthly surcharge and will have these costs included in Medicaid reimbursement calculations.
Alabama Medicaid Agency and state officials, who will adjust Medicaid per diem rates to reflect these costs and manage any required reductions to stay within the 6% revenue cap.

Key Provisions
Extension of the supplemental privilege assessment and the monthly surcharge through August 31, 2015.
Maintain the privilege assessment rate at $1,899.96 per bed per year.
Supplemental privilege assessment rates: $1,063.08 per bed per year for Sep 1, 2010 through Aug 31, 2011, and $1,603.08 per bed per year for Sep 1, 2011 through Aug 31, 2013 (2015); a monthly surcharge begins May 20, 2012, with an initial $131.25 per bed, then reduced to $43.75 per bed per month starting Sep 20, 2012.
Total assessments and surcharge are treated as allowable costs and included in Medicaid per diem rate calculations; Medicaid adjustments are used to reflect these costs in facility reimbursements.
A revenue cap provision: if total revenues from the assessments and related charges are less than or equal to 6% of a facility’s total revenues in a state fiscal year, the department may reduce rates accordingly so only the actual amounts paid are used in calculating costs.
Effective date: immediately after passage and governor approval.

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