H. B. 4625
(By Delegate Warner)
[Introduced February 22, 2002; referred to the
Committee on Health and Human Resources then Finance.]
A BILL to amend and reenact section eleven, article twenty-seven,
chapter eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to increasing the
health care provider tax imposed on gross receipts of
providers of nursing facility services.
Be it enacted by the Legislature of West Virginia:
That section eleven, article twenty-seven, chapter eleven of
the code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 27. HEALTH CARE PROVIDER TAXES.
§11-27-11. Imposition of tax on providers of nursing facility
services, other than services of intermediate care
facilities for the mentally retarded.
(a) Imposition of tax. -- For the privilege of engaging or
continuing within this state in the business of providing nursing
facility services, other than those services of intermediate care
facilities for the mentally retarded, there is hereby levied and
shall be collected from every person rendering such service an
annual broad-based health care related tax: Provided, That
hospitals which provide nursing facility services may adjust
nursing facility rates to the extent necessary to compensate for
the tax without first obtaining approval from the health care cost
review authority: Provided, however, That the rate adjustment is
limited to a single adjustment during the initial year of the
imposition of the tax which adjustment shall be exempt from
prospective review by the health care cost review authority and
further which is limited to an amount not to exceed the amount of
the tax which is levied against the hospital for the provision of
nursing facility services pursuant to this section. The health
care cost review authority shall retroactively review the rate
increases implemented by the hospitals under this section during
the regular rate review process. A hospital which fails to meet
the criteria established by this section for a rate increase exempt
from prospective review shall be subject to the penalties imposed under article twenty-nine-b, chapter sixteen of the code.
(b) Rate and measure of tax. -- The tax imposed in subsection
(a) of this section shall be five and one-half percent of the gross
receipts derived by the taxpayer from furnishing nursing facility
services in this state, other than services of intermediate care
facilities for the mentally retarded. This rate shall be increased
to five and ninety-five one hundredths percent of such gross
receipts received or receivable by providers after the thirtieth
day of June, two thousand two.
(c) Definitions. --
(1) "Gross receipts" means the amount received or receivable,
whether in cash or in kind, from patients, third-party payors and
others for nursing facility services furnished by the provider,
including retroactive adjustments under reimbursement agreements
with third-party payors, without any deduction for any expenses of
any kind: Provided, That accrual basis providers shall be allowed
to reduce gross receipts by their bad debts, to the extent the
amount of such bad debts was previously included in gross receipts
upon which the tax imposed by this section was paid.
(2) "Nursing facility services" means those services that are
nursing facility services for purposes of Section 1903(w) of the Social Security Act.
(d) Effective date. -- The tax imposed by this section shall
apply to gross receipts received or receivable by providers after
the thirty-first day of May, one thousand nine hundred
ninety-three.
NOTE: The purpose of this bill is to increase the health care
provider tax on gross receipts of providers of nursing facility
services from 5.5% to 5.95%.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.