HB285 Alabama 2022 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

Regular Session 2022

Title

Nursing facilities, privilege assessments and surcharge on each nursing home bed, assessment extended, to August 31, 2025, Sec. 40-26B-21 am'd.

Summary

HB285 extends nursing facility privilege assessments and related charges through August 31, 2025 and makes the Alabama Medicaid Agency the administrator of the Medicaid nursing facility program during that period.

What This Bill Does

It keeps the per-bed privilege assessment, the supplemental privilege assessment, the secondary supplemental privilege assessment, and the surcharge in place through 2025. It directs that the Medicaid nursing facility program be administered by the Alabama Medicaid Agency during the period the assessments are collected. It also specifies how the assessments are calculated, how they are treated as allowable costs in Medicaid per diem rates, and how rate adjustments may occur if total revenues fall short of certain thresholds.

Who It Affects

• Nursing facilities: must pay the per-bed privilege assessment, supplemental privilege assessment, secondary supplemental privilege assessment, and surcharge through 2025, with these costs—once calculated—being included in Medicaid per diem reimbursements.
• Alabama Medicaid Agency: will administer the Medicaid nursing facility program during the period and will calculate and adjust Medicaid per diem rates to include the assessments, using resident days and cost reports in its methodology.

Key Provisions

• Extends the supplemental privilege assessment, the secondary supplemental privilege assessment, and the surcharge through August 31, 2025.
• Maintains the base privilege assessment at $1,899.96 per bed per year, with an additional $327.48 per bed per year beginning September 1, 2020, paid in equal monthly installments and included in Medicaid per diem rates.
• Keeps the supplemental privilege assessment schedule in place for September 1, 2010 through August 31, 2025, with monthly surcharges (initial $131.25 per bed, later reduced to $43.75) beginning May 20, 2012 and September 2012 respectively.
• Implements the secondary supplemental privilege assessment at $401.28 per bed per year from October 1, 2015 through August 31, 2025, payable monthly.
• Requires total assessments to be treated as allowable costs and included in Medicaid per diem rate calculations, with adjustments based on resident days reported and applicable cost ceilings.
• Allows reductions to the assessment rates and corresponding Medicaid per diem adjustments if total state revenues from these assessments fall to 6% or less of total nursing facility revenues, ensuring only the actual collected amount is used in calculations.
• Effective date is immediate upon governor’s approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Nursing Homes