HB238 Alabama 2015 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

Regular Session 2015

Title

Nursing facilities, supplemental privilege assessment and monthly surcharge extended, expiration under certain conditions, Sec. 40-26B-21 am'd.

Summary

HB238 extends the supplemental privilege assessment and monthly surcharge on nursing facilities through August 31, 2017 and keeps the Medicaid nursing facility program administered by the Alabama Medicaid Agency for a defined period.

What This Bill Does

The bill extends the supplemental privilege assessment and the monthly surcharge for nursing facilities to 2017. It maintains the base privilege assessment at $1,899.96 per bed per year and sets the supplemental assessment and surcharge timing and amounts, including a starting monthly surcharge and later reduction. It requires Medicaid reimbursements to treat these assessments as allowable costs and to adjust per diem payments accordingly, with rate changes coordinated to specific dates, and it keeps administering authority with the Alabama Medicaid Agency through at least October 1, 2017.

Who It Affects

• Nursing facilities in Alabama, which would continue paying the privilege assessment, supplemental privilege assessment, and monthly surcharge through August 31, 2017, affecting their operating costs and Medicaid reimbursements.
• Medicaid recipients in nursing facilities and the Alabama Medicaid Agency, whose per diem reimbursements will include these assessments and whose program administration is extended through at least October 1, 2017.

Key Provisions

• Extends the supplemental privilege assessment and monthly surcharge for nursing facilities to August 31, 2017.
• Keeps the base privilege assessment at $1,899.96 per bed per year.
• Specifies the supplemental assessment rates ($1,063.08 per bed for 2010-11; $1,603.08 per bed for 2011-2017) and the monthly surcharge ($131.25 per bed, then $43.75 starting September 20, 2012).
• Requires Medicaid reimbursements to include these assessments as allowable costs and to adjust Medicaid per diem rates accordingly, using resident days to calculate adjustments.
• Provides for rate adjustments on October 1, 2011 (privilege) and May 1, 2012 (surcharge) and allows annualization if cost reports cover less than one year; also allows ceiling adjustments to keep costs allowable.
• If total state revenues from these assessments are 6% or less of nursing facility revenues in a year, requires proportional reductions to the assessments and corresponding Medicaid per diem adjustments.
• Medicaid nursing facility program remains administered by the Alabama Medicaid Agency through at least October 1, 2017, with immediate effectiveness upon passage.

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