Connecticut Seal

General Assembly

 

Substitute Bill No. 5588

    February Session, 2016

 

*_____HB05588HS____031816____*

AN ACT CONCERNING THE TIMING OF PAYMENTS FROM SUPPLEMENTAL INPATIENT PAYMENT POOLS FOR SHORT-TERM GENERAL HOSPITALS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (b) of section 17b-239e of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016):

(b) The commissioner may establish a blended inpatient hospital case rate that includes services provided to all Medicaid recipients and may exclude certain diagnoses, as determined by the commissioner, if the establishment of such rates is needed to ensure that the conversion to an administrative services organization is cost neutral to hospitals in the aggregate and ensures patient access. Utilization may be a factor in determining cost neutrality. The Department of Social Services [may] shall establish, within available appropriations, (1) a supplemental inpatient payment pool for [certain] all hospitals, and (2) a supplemental inpatient payment pool for certain small independent hospitals. No payment shall be made from such supplemental inpatient payment pools to (A) any hospital which, on or after July 1, 2016, is within the class of hospitals licensed by the Department of Public Health as a children's general hospital, or (B) a short-term acute care hospital operated exclusively by the state other than a short-term acute care hospital operated by the state as a receiver pursuant to chapter 920. Payments made to hospitals from such supplemental inpatient payment pools shall be in addition to, and not a replacement for, payments made to hospitals based on the inpatient Medicaid rates established pursuant to section 17b-239.

(c) The commissioner shall make quarterly payments to all eligible hospitals from the supplemental inpatient payment pools not later than the last day of the second month of each quarter. Each quarterly payment to an eligible hospital from a supplemental inpatient payment pool shall equal one-quarter of that hospital's total allocated portion of the applicable supplemental inpatient payment pool for that year. Following issuance of payments to hospitals from a supplemental inpatient payment pool for any quarter, the commissioner shall seek federal matching funds under the medical assistance program for such quarterly payments. Interest earned on funds in the supplemental inpatient payment pools shall be credited to the pools. The funds in the supplemental inpatient payment pools shall not be diverted to any other state use.

Sec. 2. Section 12-263b of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016):

(a) For each calendar quarter commencing on or after July 1, 2011, there is hereby imposed a tax on the net patient revenue of each hospital in this state to be paid each calendar quarter. The rate of such tax shall be up to the maximum rate allowed under federal law. The Commissioner of Social Services shall determine the base year on which such tax shall be assessed. The Commissioner of Social Services may, in consultation with the Secretary of the Office of Policy and Management and in accordance with federal law, exempt a hospital from the tax on payment earned for the provision of outpatient services based on financial hardship. Effective July 1, 2012, and for the succeeding fifteen months, the rates of such tax, the base year on which such tax shall be assessed, and the hospitals exempt from the outpatient portion of the tax based on financial hardship shall be the same tax rates, base year and outpatient exemption for hardship in effect on January 1, 2012.

(b) Each hospital shall, on or before the last day of January, April, July and October of each year, render to the Commissioner of Revenue Services a return, on forms prescribed or furnished by the Commissioner of Revenue Services and signed by one of its principal officers, stating specifically the name and location of such hospital, and the amount of its net patient revenue as determined by the Commissioner of Social Services. [Payment shall be made] Subject to the provisions of subsection (c) of this section, each hospital shall make a tax payment with such return. Each hospital shall file such return electronically with the department and make such payment by electronic funds transfer in the manner provided by chapter 228g, irrespective of whether the hospital would otherwise have been required to file such return electronically or to make such payment by electronic funds transfer under the provisions of chapter 228g.

(c) A hospital may deduct from each quarterly tax payment due pursuant to this section an amount equal to the total payments authorized but remaining unpaid, inclusive of the state and federal shares of such authorized payments, from a supplemental inpatient hospital payment pool or small hospital payment pool established pursuant to section 17b-239e, as amended by this act, or any other hospital payment pool established by the General Assembly to be funded in whole or in part by hospital tax payments. A hospital may deduct such amount for that quarter or any preceding quarter.

[(c)] (d) Notwithstanding any other provision of law, for each calendar quarter commencing on or after July 1, 2015, and prior to January 1, 2016, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed fifty and one one-hundredths per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits. For each calendar quarter commencing on or after January 1, 2016, and prior to January 1, 2017, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed fifty-five per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits. For each calendar quarter commencing on or after January 1, 2017, and prior to January 1, 2018, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed sixty per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits. For each calendar quarter commencing on or after January 1, 2018, and prior to January 1, 2019, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed sixty-five per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits. For each calendar quarter commencing on or after January 1, 2019, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed seventy per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.

Sec. 3. Section 12-263c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016):

(a) If any hospital fails to pay the amount of tax reported to be due on its return, less any deduction made pursuant to subsection (c) of section 12-263b, as amended by this act, within the time specified under the provisions of section 12-263b, as amended by this act, there shall be imposed a penalty equal to ten per cent of such amount due and unpaid, or fifty dollars, whichever is greater. The tax shall bear interest at the rate of one per cent per month or fraction thereof, from the due date of such tax until the date of payment.

(b) If any hospital has not made its return within one month after the time specified in section 12-263b, as amended by this act, the Commissioner of Revenue Services may make such return at any time thereafter, according to the best information obtainable and according to the form prescribed. To the tax imposed upon the basis of such return, there shall be added an amount equal to ten per cent of such tax, or fifty dollars, whichever is greater. The tax shall bear interest at the rate of one per cent per month or fraction thereof, from the due date of such tax until the date of payment.

(c) Subject to the provisions of section 12-3a, the commissioner may waive all or part of the penalties provided under this section when it is proven to his satisfaction that the failure to pay any tax on time was due to reasonable cause and was not intentional or due to neglect.

(d) The commissioner shall notify the Commissioner of Social Services of any amount delinquent under sections 12-263a to 12-263e, inclusive, [and, upon] less any deduction made pursuant to subsection (c) of section 12-263b, as amended by this act. Upon receipt of such notice, the Commissioner of Social Services shall deduct and withhold such amount from amounts otherwise payable by the Department of Social Services to the delinquent hospital. In no event shall the Commissioner of Social Services deduct and withhold any amounts based on a deduction made pursuant to subsection (c) of section 12-263b, as amended by this act.

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2016

17b-239e(b)

Sec. 2

July 1, 2016

12-263b

Sec. 3

July 1, 2016

12-263c

HS

Joint Favorable Subst.