HB177 Alabama 2019 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

Regular Session 2019

Title

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

Summary

HB 177 extends the extra fees on nursing facilities (supplemental privilege assessment and monthly surcharge) through August 31, 2022 and maintains related Medicaid rate adjustments.

What This Bill Does

It extends the supplemental privilege assessment and the monthly surcharge to August 31, 2022. It adds a secondary supplemental privilege assessment from October 1, 2015 through August 31, 2022 at $401.28 per bed per year, payable monthly and contingent on minimum appropriation. It keeps these charges as allowable costs included in Medicaid per diem rate calculations, with rate adjustments taking effect for the supplemental assessment and the surcharge as specified, and allows reductions in rates if total revenues fall below a 6% threshold. The Medicaid nursing facility program will continue to be administered by the Alabama Medicaid Agency through at least October 1, 2022.

Who It Affects

• Nursing facilities in Alabama will pay base privilege, supplemental privilege, and secondary supplemental assessments and monthly surcharges, and these costs will be included in Medicaid per diem rate calculations which can affect facility revenues.
• Alabama Medicaid Agency and Medicaid nursing facility residents (the people served by the program) as the program administrator and as recipients whose per diem payments may be adjusted based on these charges.

Key Provisions

• Base privilege assessment remains $1,899.96 per bed per year.
• Supplemental privilege assessment continues through August 31, 2022 with per-bed annual rates of $1,063.08 (2010-2011) and $1,603.08 (2011-2022).
• Monthly surcharge begins with May 20, 2012 payment; initial amount $131.25 per bed, reduced to $43.75 per bed starting September 20, 2012.
• Secondary supplemental privilege assessment of $401.28 per bed per year payable monthly, for October 1, 2015 through August 31, 2022, contingent on minimum appropriation.
• All privilege-related costs are treated as allowable costs and included in Medicaid per diem rate computations, with adjustments effective October 1, 2011 (supplemental) and May 1, 2012 (surcharge).
• If total revenues from these assessments are less than or equal to six percent of total nursing facility revenues in a state fiscal year, the department may reduce the rates and corresponding Medicaid per diem adjustments.
• Medicaid nursing facility program remains administered by the Alabama Medicaid Agency through at least October 1, 2022.
• The act becomes effective immediately after 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