HB347 Alabama 2017 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

Regular Session 2017

Title

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

Summary

HB347 extends the nursing facility funding assessments (supplemental privilege, monthly surcharge, and a secondary supplemental assessment) through August 31, 2018 and keeps them as allowable costs in Medicaid rate calculations.

What This Bill Does

It extends the supplemental privilege assessment and the monthly surcharge for nursing facilities through August 31, 2018 (they were set to expire earlier). It also extends the secondary supplemental privilege assessment from October 1, 2015 through August 31, 2018, contingent on a minimum appropriation, at $401.28 per bed per year (payable monthly). The base privilege assessment remains $1,899.96 per bed per year, and the surcharge started at $131.25 per bed per month and was reduced to $43.75 per bed per month starting September 20, 2012. All of these assessments are treated as allowable costs and included in Medicaid per diem rate calculations, with rate adjustments to reflect changes in the assessments. If total revenues from these assessments fall to 6% or less of total nursing facility revenues in a fiscal year, the state can reduce the assessments and must adjust Medicaid per diem payments accordingly. The Medicaid nursing facility program will continue to be administered by the Alabama Medicaid Agency through at least October 1, 2018, and the act becomes effective immediately upon passage.

Who It Affects

• Nursing facilities in Alabama, which will continue to pay the privilege assessment, supplemental privilege assessment, monthly surcharge, and secondary supplemental assessment, with these costs ultimately factored into Medicaid per diem reimbursements.
• Alabama Medicaid Agency and the state government, which administer the Medicaid program, adjust per diem rates to include these costs and determine eligibility for potential revenue-based reductions.

Key Provisions

• Extends the supplemental privilege assessment and the monthly surcharge through August 31, 2018.
• Maintains the base privilege assessment at $1,899.96 per bed annually and the prior supplemental assessment amounts ($1,063.08 per bed for Sept 1, 2010–Aug 31, 2011; $1,603.08 per bed for Sept 1, 2011–Aug 31, 2018) with the monthly surcharge schedule ($131.25 per bed starting May 20, 2012, reduced to $43.75 per month starting Sep 20, 2012).
• Adds and extends a secondary supplemental privilege assessment from Oct 1, 2015 through Aug 31, 2018 at $401.28 per bed per year, payable monthly, contingent on minimum appropriation.
• Requires all privilege-related costs to be treated as allowable costs and included in Medicaid per diem rate calculations, with adjustments to rates effective Oct 1, 2011 (privilege assessment) and May 1, 2012 (surcharge).
• Allows the Alabama Medicaid Agency to reduce the privilege and supplemental assessment rates if total revenues from these assessments are 6% or less of total nursing facility revenues in a fiscal year, with corresponding reductions to Medicaid per diem adjustments.
• Keeps the Medicaid nursing facility program under administration of the Alabama Medicaid Agency through at least Oct 1, 2018.
• Effective immediately upon passage and governor's 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