Senate Bill No. 513

(By Senators Humphreys, Grubb, Bailey and Macnaughtan)

____________

[Introduced March 22, 1993; referred to the Committee
on Health and Human Resources; and then to the

Committee on Finance.]

____________




A BILL to amend chapter eighteen-c of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article five, relating to levying a one percent surcharge on all hospital bills; the rural health initiative; and health professionals student loan programs.

Be it enacted by the Legislature of West Virginia:
That chapter eighteen-c of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article five, to read as follows:
ARTICLE 5. FAIR HEALTHCARE ACT.

§18C-5-1. Fair healthcare act fund.

There is hereby established a special revolving fund account under the board of trustees in the state treasury to be known as the "Fair Healthcare Act Loan Fund" which shall be used to carryout the purposes of the health professionals student loan program in article three of this chapter and the Rural Health Initiative Act of 1991 in article sixteen, chapter eighteen-b of this chapter. The fund shall consist of all funds collected from the surcharge on hospital bills levied by section two of this article and other amounts which may be available from external sources. Balances remaining in the fund at the end of the fiscal year shall not expire or revert. All costs associated with the administration of this section shall be paid from the fair healthcare act fund.
An individual is eligible for a health education student loan from the fair healthcare act fund if the individual is a resident of this state, and (1) is enrolled or accepted for enrollment at the West Virginia university school of medicine, Marshall university school of medicine, the West Virginia school of osteopathic medicine in a program leading to the degree of medical doctor (M.D.) or doctor of osteopathy (D.O.): Provided, That the individual has not yet received one of these degrees and is not in default of any previous student loan, (2) meets the established academic standards, (3) signs a contract to practice his or her health profession in an underserved area of the state, and (4) agrees to stay in West Virginia and practice for five years after finishing college or residency.
Funds from the fair healthcare act fund may also be used for grants to those persons defined as rendering primary care or operating rural health care facilities as defined in sectionthree, article sixteen, chapter eighteen-b of this code. The rural health initiative advisory panel may determine how these grants are made and to whom.
§18C-5-2. Surcharge on hospital bills.

There is hereby levied, on all hospital bills rendered in this state, a surcharge of one percent of the total bill, beginning the first day of July, one thousand nine hundred ninety-three. Every hospital in the state shall assess and collect the surcharge and remit the surcharge to the senior administrator employed by the chancellors of the board of trustees who has the duty to deposit all funds received into the fair healthcare act fund and to administer this fund in accordance with established guidelines, in consultation with and under the direction of the governing board and the vice chancellor with the advice of the rural health initiative advisory panel.



NOTE: The purpose of this bill is to levy a one percent surcharge on all hospital bills to approve funds for scholarships to West Virginia residents who attend state medical schools and who agree to stay in the state for five years after school or residency. It also permits grants to physicians practicing in rural areas of the state.

This article is new; therefore, strike-throughs and underscoring have been omitted.