House Bill 230 Alabama 2026 Session

Summary

Primary Sponsor

Jeff SorrellsRepresentative

Republican

Session

2026 Regular Session

Title

Nursing facilities, privilege assessments and surcharge on each nursing home bed, sunset removed

Summary

HB230 would remove the sunset on nursing facility privilege assessments and surcharges, making them permanent while updating Medicaid reimbursement rules.

What This Bill Does

It removes the August 31, 2028 sunset for the privilege assessment, supplemental privilege assessment, and the bed surcharge at nursing facilities, making them permanent. It updates how Medicaid payments to nursing facilities are calculated by adopting the Chapter 560-X-22 reimbursement rules effective May 1, 2026, including new cost ceilings and asset rebasing. It adds a quality incentive program funded at least $5 million per scoring year, based on CMS quality measures and customer satisfaction metrics. The act becomes effective June 1, 2026.

Who It Affects

• Nursing facilities (providers) would continue to pay the per-bed privilege assessment, supplemental privilege assessment, and bed surcharge, with these costs incorporated into Medicaid rate calculations.
• Medicaid nursing home residents and the Alabama Medicaid program would see changes in how per diem rates are computed and reimbursed under updated reimbursement rules and incentives.

Key Provisions

• Remove the August 31, 2028 sunset on the privilege assessment, supplemental privilege assessment, and surcharge, making them permanent.
• Adopt the Medicaid reimbursement methodology in Chapter 560-X-22 as of May 1, 2026, including revised cost ceilings, asset rebasing, potential special reimbursements, and a quality incentive program funded at least $5,000,000 per scoring year.

AI-generated summary using openai/gpt-5-nano on Feb 11, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue