Bill Text: WV HB4209 | 2016 | Regular Session | Comm Sub
Bill Title: Relating generally to health care provider taxes
Spectrum: Slight Partisan Bill (Republican 5-2)
Status: (Passed) 2016-05-13 - Chapter 238, Acts, Regular Session, 2016 [HB4209 Detail]
Download: West_Virginia-2016-HB4209-Comm_Sub.html
WEST virginia legislature
2016 regular session
Committee Substitute
for
House Bill 4209
By Ellington, Summers, Householder, Rohrbach, Stansbury, Campbell and Fleischauer
[Originating in the Committee on Finance, February 12, 2016]
A BILL to amend and reenact §11-27-38 of the Code of West Virginia, 1931, as amended, relating generally to health care provider taxes; changing rate of tax imposed on certain eligible acute care hospitals for the fiscal year 2017; specifying purposes for which funds collected may be expended; providing for distribution of remaining funds at the end of fiscal year; and extending expiration date for 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‑two one hundredths of one percent seventy‑four
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.
(b) For purposes of this section, the term Aeligible 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.
(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) 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 as to support West Virginia Medicaid and the
hospital Medicaid upper payment limit program and as otherwise set forth in
this section.
(f) 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 appropriate appropriated for state fiscal year
ending June 30, 2011.
(g) Fifty percent of any funds remaining in the
Eligible Acute Care Provider Enhancement Account as of June 30, 2015, 2016,
shall be transferred to the West Virginia Medical Services Fund. This transfer
shall occur no later than September 30, 2015 2016. These funds
shall be used during state fiscal year 2016 2017 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, 2015, 2016, shall remain in the Eligible Acute Care Provider
Enhancement Account and shall be used in state fiscal year 2016 2017.
If the program expires on June 30, 2016, 2017, as set forth in
subsection (h) (i) of this section, fifty percent of any funds
remaining as of June 30, 2017, 2018, shall be transferred on that
date to the West Virginia Medical Services Fund. This transfer shall occur only
after state fiscal year 2016 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, 2017
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 2016 2017.
(g)(h)The changes to the tax rate in this
section enacted in the 2015 2016 Regular Session are effective
July 1, 2015, 2016, upon the approval of the state plan
amendment.
(h)(i)The tax imposed by this section
expires on and after June 30, 2016, 2017, unless otherwise
extended by the Legislature.
