WEST virginia legislature
2017 regular session
Committee Substitute
for
Committee Substitute
for
Senate Bill 486
By Senators Takubo and Stollings
[Originating in the Committee on Finance; reported on March 21, 2017]
A BILL to amend and reenact §11-27-38 of the Code of West Virginia, 1931, as amended, relating to health care provider taxes; making conforming amendments consistent with federal law; changing the rate of tax on eligible acute care hospitals for fiscal year 2018; specifying purposes for which funds may be collected; providing for distribution of remaining funds at the end of fiscal year; providing for an effective date; and extending the expiration date for the tax.
Be it enacted by the Legislature of West Virginia:
That §11-27-38 of the Code of West Virginia, 1931, as amended, be amended and reenacted 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 is imposed on certain
eligible acute care hospitals an additional tax of seventy-four seventy-five
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 directed
payment program, or its successor, in accordance with 42 C. F. R. 438.6.
(b) 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) (2) A critical access hospital, designated as
a critical access hospital after meeting all federal eligibility criteria;
(4) (3) A licensed free-standing psychiatric or medical
rehabilitation hospital; or
(5) (4) A licensed long-term acute care hospital.
(c) 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 for 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.
(d) 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 secretary
(e) (c) There is continued 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 may 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 only be used to support West Virginia Medicaid and the hospital
Medicaid upper payment limit program directed payment program, or its
successor, in accordance with 42 C. F. R. 438.6 and as otherwise set forth
in this section.
(f) (d) The imposition and collection of taxes
imposed by this section is 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 toward 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 toward 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 appropriated for state
fiscal year ending June 30, 2011 If the tax payments remitted by the
eligible acute care hospitals are not used to effectuate the provisions of this
article.
(g) (e) Fifty percent of any Any
funds remaining in the Eligible Acute Care Provider Enhancement Account as of
June 30, 2016 2017, shall be transferred to the West Virginia
Medical Services Fund. This transfer shall occur no later than September 30, 2016
2017. These funds shall be used during state fiscal year 2017 2018
at the discretion of the Bureau for Medical Services. The remaining fifty
percent of any funds in the Eligible Acute Care Provider Enhancement Account as
of June 30, 2016, shall remain in the Eligible Acute Care Provider Enhancement
Account and shall be used in state fiscal year 2017. If the program expires on
June 30, 2017, as set forth in subsection (i) of this section, fifty percent of
any funds remaining as of June 30, 2018, shall be transferred on that date to
the West Virginia Medical Services Fund. This transfer shall occur only after
state fiscal year 2017 fourth quarter tax collections and program payments. The
remaining fifty percent of the funds shall be distributed to the eligible acute
care providers no later than June 30, 2018. The distribution of funds to the
eligible acute care providers shall be made in the same proportion as the taxes
paid by the eligible acute care providers into the Eligible Acute Care Provider
Enhancement Fund during state fiscal year 2017
(h) (f) The changes to the tax rate in this
section enacted in the 2016 2017 regular session are effective
July 1, 2016 upon the approval of the state plan amendment. 2017.
(i) (g) The tax imposed by this section expires on
and after June 30, 2017 2018, unless otherwise extended by the
Legislature.
NOTE: The purpose of this bill is to change the rate of tax on eligible acute care hospitals for fiscal year 2018; specify purposes for which funds may be collected, provide for distribution of remaining funds at the end of fiscal year and extend the expiration date for the tax.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.