ENROLLED
COMMITTEE SUBSTITUTE
FOR
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 492
(Senators Kessler (Acting President), Stollings, McCabe, Foster, Hall,
Jenkins, Prezioso, Unger, Plymale, Wells, Klempa, Yost and Minard, original
sponsors)
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[Originating in the Committee on Finance;
reported February 28, 2011.]
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AN ACT to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-27-38, relating
to health care provider taxes; maximizing federal funding for
the state Medicaid program; increasing the health care
provider tax imposed on gross receipts of providers of certain
eligible acute care hospitals contingent upon federal approval
of a Medicaid state plan amendment; defining terms; providing
for the collection and administration of the increased health
care provider tax on certain eligible acute care hospitals;
and providing effective date and expiration date.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §11-27-38, to read as
follows:
ARTICLE 27. HEALTH CARE PROVIDER TAXES.
§11-27-38. Contingent increase of tax rate on certain eligible
acute care hospitals.
(a) In addition to the rate of the tax imposed by sections
nine and fifteen of this article on providers of inpatient and
outpatient hospital services, there shall be imposed on certain
eligible acute care hospitals an additional tax of eighty-eight one
hundredths of one percent on the gross receipts received or
receivable by eligible acute care hospitals that provide inpatient
or outpatient hospital services in this state through a Medicaid
upper payment limit program. For purposes of this section, the
term "eligible acute care hospital" means any inpatient or
outpatient hospital conducting business in this state that is not:
(1) A state owned or designated facility; (2) a nonstate, but
government owned facility such as a county or city hospital; (3) a
critical access hospital, designated as a critical access hospital
after meeting all federal eligibility criteria; (4) a licensed
free-standing psychiatric or medical rehabilitation hospital; or
(5) a licensed long-term acute care hospital.
(b) The provisions of this section are intended to maximize
federal funding for the purpose of implementing a hospital Medicaid upper payment limit program as described in this section. The
taxes imposed by this section may not be imposed or collected until
all of the following have occurred: (1) A state plan amendment is
developed by the bureau of medical services, as authorized by the
Secretary of the Department of Health and Human Resources; (2) the
state plan amendment is reviewed by the Medical Fund Services
Advisory Council; (3) a comment period of not less than thirty days
for public comment on the state plan amendment shall have passed;
and (4) the state plan amendment is approved by the Centers for
Medicare and Medicaid Services. The state plan amendment shall
include all of the following: (1) The provisions of the proposed
upper payment limit program or programs; (2) a state maintenance of
effort to maintain adequate Medicaid funding; and (3) a provision
that any other state Medicaid program will not negatively impact
the hospital upper payment limit payments. The taxes imposed and
collected may be imposed and collected beginning on the earliest
date permissible under applicable federal law under the upper
payment limit program, as determined by the West Virginia Secretary
of Health and Human Resources.
(c)There is hereby created a special revenue account in the
State Treasury, designated the "Medicaid State Share Fund". The
amount of taxes collected under this section, including any
interest, additions to tax and penalties collected under article
ten of this chapter, less the amount of allowable refunds, the
amount of any interest payable with respect to such refunds, and costs of administration and collection, shall be deposited into the
special revenue fund and shall not revert to general revenue. The
Tax Commissioner shall establish and maintain a separate account
and accounting for the funds collected under this section, in an
account to be designated as the "Eligible Acute Care Provider
Enhancement Account." The amounts collected shall be deposited,
within fifteen days after receipt by the tax commissioner, into the
Eligible Acute Care Provider Enhancement Account. Disbursements
from the Eligible Acute Care Provider Enhancement Account within
the Medicaid State Share Fund may be used only to support the
hospital Medicaid upper payment limit program described in this
section.
(d)The imposition and collection of taxes imposed by this
section shall be suspended immediately upon the occurrence of any
of the following: (1) The effective date of any action by Congress
that would disqualify the taxes imposed by this section from
counting towards state Medicaid funds available to be used to
determine the federal financial participation; (2) the effective
date of any decision, enactment or other determination by the
Legislature or by any court, officer, department, agency of office
of state or federal government that has the effect of disqualifying
the tax from counting towards state Medicaid funds available to be
used to determine federal financial participation for Medicaid
matching funds, or creating for any reason a failure of the state
to use the assessment of the Medicaid program as described in this section; and (3) the effective date of an appropriation for any
state fiscal year for hospital payments under the state Medicaid
program that is less than the amount appropriate for state fiscal
year ending June 30, 2011. Any funds remaining in the eligible
acute care provider enhancement fund upon the occurrence of any of
the events described in this subsection that cannot be used to
match eligible federal Medicaid funds, shall be refunded to
eligible acute care providers in proportion to the amount paid by
each eligible acute care provider into the fund.
(e) The provisions of this section are retroactive and shall
become effective on the first day of the quarter in which the state
plan amendment is submitted.
(f) The tax imposed by this section shall expire on and after
June 30, 2013, unless otherwise extended by the Legislature.
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