HB563 Alabama 2013 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

Regular Session 2013

Title

Hospitals, private hospital assessments for Medicaid funding, extend to fiscal year 2015, state owned and other public hospitals, intergovernmental transfer for Medicaid funding, Secs. 40-26B-70, 40-26B-71, 40-26B-73, 40-26B-77, 40-26B-78, 40-26B-80, 40-26B-82, 40-26B-84, 40-26B-88 am'd.; Sec. 40-26B-77.1 added

Summary

HB563 would extend Alabama's private hospital assessment and Medicaid funding program through 2018 and require intergovernmental transfers from state-owned and public hospitals to fund inpatient/outpatient care and uncompensated care payments.

What This Bill Does

HB563 extends the private hospital assessment and Medicaid funding program for fiscal years 2014 through 2018 and sets the base year for calculation to 2011. State-owned and public hospitals would make intergovernmental transfers to the Medicaid Agency to fund inpatient and outpatient care, while certified public expenditures would cover uncompensated care and help pay the hospital's disproportionate share payments. A Hospital Assessment Account would hold these funds separately from the General Fund and be used to make inpatient and outpatient payments and related disbursements, with quarterly payments and rules preventing offset against other Medicaid payments. The bill includes safeguards on federal funding, refunds of unused funds, and an effective date of October 1, 2013, with transitional rules for new hospitals opening after that date.

Who It Affects

• Privately operated hospitals would pay an assessment (5.50% of net patient revenue for 2014-2018, based on 2011 data) and participate in the access payment mechanism that distributes funds to hospitals.
• State-owned and publicly owned hospitals would make intergovernmental transfers to the Medicaid Agency to fund inpatient/outpatient care and certify uncompensated care expenditures to receive related Medicaid payments, including disproportionate share payments.

Key Provisions

• Extend the private hospital assessment and Medicaid funding program through fiscal years 2014-2018 and set the base year for calculation to 2011.
• Impose a private hospital assessment of 5.50% of net patient revenue for 2014-2018 (based on 2011 data) and adjust the calculation base accordingly.
• Add Section 40-26B-77.1 to require state-owned and public hospitals to make intergovernmental transfers to the Medicaid Agency to fund inpatient/outpatient care and to provide certified public expenditures for uncompensated care and DSH payments.
• Create the Hospital Assessment Account in the Health Care Trust Fund; funds come from hospital assessments, interest, penalties, and other sources, and are kept separate from the State General Fund.
• Provide that hospital access payments (inpatient and outpatient) will be distributed to publicly owned, state-owned, and privately operated hospitals up to the respective upper payment limits, with payments made quarterly.
• Specify that hospital access payments cannot be used to offset other Medicaid payments and that funding is contingent on federal matching funds being available.
• Make the act effective October 1, 2013, with transitional rules for hospitals opening after that date to begin intergovernmental transfers in the first full month of operation; include refunds of unused funds if conditions change or federal funding is not available.

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