SB 391/HB 383 – Medicaid Modernized Hospital Assessments

Primary Senate Sponsors: Sen. Joyce Krawiec (R-Davie, Forsyth); Sen. Jim Burgin (R-Harnett, Johnston, Lee); Sen. Jim Perry (R-Lenoir, Wayne)

Primary House Sponsors: Rep. Donny Lambeth (R-Forsyth); Rep. Donna White (R-Johnston); Rep. Wayne Sasser (R-Cabarrus, Rowan, Stanly)

Summary

This bill creates a revised Article 7B, Hospital Assessment Act. This Act:

  • Defines numerous terms used in the Act.
  • Requires assessments to be calculated, imposed, and due quarterly and requires payment within 7 days of the due date.
  • Establishes the actions that may be taken against hospitals owing a past-due assessment amount.
  • Permits a hospital to appeal a determination of the assessment amount through a reconsideration review.
  • Allows paid assessments to be included as allowable costs of a hospital for purposes of any applicable Medicaid reimbursement formula.

This bill also:

  • Establishes provisions for calculating the assessment imposed against public hospitals and private hospitals.
  • Requires assessment proceeds and all corresponding matching federal funds be used to make the State’s annual Medicaid payment to the State, to fund payments to hospitals made directly by the Department, to fund a portion of capitation payments to prepaid health plans attributable to hospital care, and to fund graduate medical education payments.
  • Requires DHHS to report to the General Assembly whenever DHHS is notified of a possible change in hospital status.
  • Specifies the percentages to be used in calculating the public hospital and the private hospital assessment for the quarter beginning July 1, 2021.
  • Establishes the procedures that DHHS must utilize when determining the percentages used in calculating the public hospital assessment and the private hospital assessment for the quarter beginning October 1, 2021.

Movement

SB 391

Filed – 3/30/2021

HB 383

Filed – 3/24/2021

This bill was referred to the following House Committees:

-Health

-Finance

-Rules, Calendar, and Operations