HB187 Alabama 2014 Session

Summary

Primary Sponsor

Jamie Ison

Republican

Session

Regular Session 2014

Title

Class 2 municipalities (Mobile), program for All Inclusive Care for the Elderly (PACE program), assessments for Alabama Health Care Trust Fund, use to fund Medicaid, licensure by Health Department

Summary

HB187 would let a PACE program operating in Class 2 municipalities (such as Mobile) pay a 5% tax on its gross receipts to help fund Alabama Medicaid, with licensing and reporting requirements for PACE providers.

What This Bill Does

The bill authorizes a PACE provider in a Class 2 municipality to contribute to the Alabama Health Care Trust Fund through a 5% privilege assessment on its gross receipts. The money goes to the Trust Fund and can be used for Medicaid-related purposes with federal participation. PACE providers would need to be licensed by the Department of Public Health, keep records, and face penalties if they fail to pay on time, with possible withholding from Medicaid reimbursements. The act only takes full effect if federal participation remains available and a contract is in place by specified dates; the assessment starts no earlier than October 1, 2014.

Who It Affects

• PACE providers with principal place of business in a Class 2 municipality: subject to a 5% assessment on gross receipts, must be licensed, keep records, and could face penalties or Medicaid withholdings for late payments.
• Alabama Medicaid Agency and the Alabama Health Care Trust Fund (and the Department of Revenue): responsible for collecting the assessment, depositing it into the Trust Fund, and using it for Medicaid-related purposes while ensuring timely Medicaid reimbursements.

Key Provisions

• Section 1 limits applicability to PACE providers in Class 2 municipalities and requires contributions to the Alabama Health Care Trust Fund.
• Section 5 imposes a 5% privilege assessment on the gross annual receipts of each PACE provider with a principal place of business in a Class 2 municipality.
• Section 6 requires the assessment to be paid to the Department of Revenue and deposited into the Alabama Health Care Trust Fund for Medicaid-related uses.
• Section 7 establishes a 10% penalty plus interest for late payments and allows withholding from Medicaid reimbursements if necessary.
• Section 8 requires PACE providers to maintain records, confidentiality of information, and Department rules for administration.
• Section 9 directs the Medicaid Agency to use assessment revenues for purposes eligible for federal matching funds and to ensure timely reimbursement to providers.
• Section 10 prevents reducing or eliminating Medicaid increases funded by the assessment while the assessment is in effect.
• Section 11 states the act has no effect if federal participation is not available or a required contract is not executed by specified dates.
• Section 12 sets the effective date: immediate upon approval, but the assessment cannot take effect before October 1, 2014.

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

Subjects

Health