HB348 Alabama 2017 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

Regular Session 2017

Title

Hospitals, private hospital assessment for Medicaid extended, including intergovernmental transfers, Secs. 40-26B-70, 40-26B-71, 40-26B-73, 40-26B-75, 40-26B-76, 40-26B-77.1, 40-26B-79, 40-26B-80, 40-26B-81, 40-26B-82, 40-26B-84, 40-26B-88 am'd.

Summary

HB348 extends Alabama's private hospital assessment and Medicaid funding program through fiscal year 2018 and clarifies how certified public expenditures are used by publicly and state-owned hospitals.

What This Bill Does

It renews the private hospital assessment for FY2018 to continue funding Medicaid. It clarifies the role of certified public expenditures for publicly and state-owned hospitals and details how intergovernmental transfers (IGTs) from those hospitals will support Medicaid funding. It creates and funds the Hospital Assessment Account to hold assessments and IGTs and to pay hospital base, access, and disproportionate share payments. It also sets payment timing, penalties for late payment, dispute resolution, and conditions under which funds and programs continue or may be adjusted, with an effective start date of October 1, 2017.

Who It Affects

• Privately operated hospitals will continue to pay an annual assessment (5.50% of net patient revenue using 2014 data for FY2017-2018), with the assessment treated as an allowable Medicaid cost and subject to timing, dispute resolution, and penalty rules.
• Publicly owned and state-owned hospitals will participate through intergovernmental transfers and certified public expenditures to help fund Medicaid payments, with funds deposited into the Hospital Assessment Account and used to support base, access, and DSH payments and to obtain federal matching funds.

Key Provisions

• Extends the private hospital assessment and Medicaid funding program through fiscal year 2018 and clarifies the use of certified public expenditures by publicly and state-owned hospitals.
• Creates the Hospital Assessment Account to hold privately operated hospital assessments, IGTs, and related funds; restricts fund use to hospital base payments, access payments, DSH payments, and reimbursements of funds, while remaining separate from the General Fund.
• Requires privately operated hospitals to pay quarterly assessments (up to a total that does not exceed the federal funds needed to pay hospital costs) and imposes penalties for late payments; allows dispute resolution and provider-specific handling of multiple hospitals.
• Requires publicly and state-owned hospitals to make intergovernmental transfers and certifies the use of certified public expenditures to maximize federal Medicaid matching funds, with transfers and expenditures governed by federal rules and CMS approvals.
• Defines payment mechanics for inpatient and outpatient services, including APR-DRG and OPPS arrangements, and outlines conditions under which the program could terminate or be adjusted if federal participation or timing changes, with an effective date of October 1, 2017.

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