2024 -- S 2602

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LC005257

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO TAXATION -- NURSING FACILITIES PROVIDER ASSESSMENT ACT

     

     Introduced By: Senator Samuel W. Bell

     Date Introduced: March 01, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-51-3 of the General Laws in Chapter 44-51 entitled "Nursing

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Facility Provider Assessment Act" is hereby amended to read as follows:

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     44-51-3. Imposition of assessment — Nursing facilities.

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     (a) For purposes of this section, the following words and phrases are construed as follows:

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     (1) anursing Nursing facility” means a person or governmental unit licensed in

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accordance with chapter 17 of title 23 to establish, maintain, and operate a nursing facility.

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     (2) "Intermediate care facility for individuals with intellectual disabilities" or "intermediate

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care facility" means a residential facility for persons with intellectual disabilities that is certified to

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meet the requirements of 42 CFR 442, Subpart C.

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     (b)(1) An assessment is imposed upon the gross patient revenue received by every nursing

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facility in each month beginning January 1, 2008, at a rate of five and one-half percent (5.5%) for

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services provided on or after January 1, 2008. Every provider shall pay the monthly assessment no

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later than the twenty-fifth (25th) day of each month following the month of receipt of gross patient

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revenue.

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     (2) An assessment is imposed upon the gross patient revenue received by every

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intermediate care facility in each month beginning July 1, 2024, at a rate of five and one-half

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percent (5.5%) for services provided on or after July 1, 2024. Every provider shall pay the monthly

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assessment no later than the twenty-fifth day of each month following the month of receipt of gross

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patient revenue.

 

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     (c) The assessment imposed by this section shall be repealed on the effective date of the

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repeal or a restricted amendment of those provisions of the Medicaid Voluntary Contribution and

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Provider-Specific Tax Amendments of 1991 (P.L. 102-234) that permit federal financial

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participation to match state funds generated by taxes.

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     (d) If, after applying the applicable federal law and/or rules, regulations, or standards

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relating to health care providers, the tax administrator determines that the assessment rate

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established in subsection (b) of this section exceeds the maximum rate of assessment that federal

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law will allow without reduction in federal financial participation, then the tax administrator is

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directed to reduce the assessment to a rate equal to the maximum rate which the federal law will

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allow without reduction in federal participation. Provided, however, that the authority of the tax

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administrator to lower the assessment rate established in subsection (b) of this section shall be

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limited solely to such determination.

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     (e) In order that the tax administrator may properly carry out his/her responsibilities under

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this section, the director of the department of human services shall notify the tax administrator of

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any damages in federal law and/or any rules, regulations, or standards which affect any rates for

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health care provider assessments.

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     SECTION 2. Rhode Island Medicaid Reform Act of 2008 Resolution.

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     WHEREAS, The General Assembly enacted Chapter 12.4 of Title 42 entitled “The Rhode

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Island Medicaid Reform Act of 2008”; and

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     WHEREAS, A legislative enactment is required pursuant to Rhode Island general laws

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section 42-12.4-1, et seq.; and

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      WHEREAS, Rhode Island general laws section 42-7.2-5(3)(i) provides that the secretary

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of the executive office of health and human services is responsible for the review and coordination

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of any Medicaid section 1115 demonstration waiver requests and renewals as well as any initiatives

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and proposals requiring amendments to the Medicaid state plan or category II or III changes as

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described in the demonstration, “with potential to affect the scope, amount, or duration of publicly-

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funded health care services, provider payments or reimbursements, or access to or the availability

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of benefits and services provided by Rhode Island general and public laws”; and

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     WHEREAS, In pursuit of a more cost-effective consumer choice system of care that is

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fiscally sound and sustainable, the secretary requests legislative approval of the following proposal

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to amend the demonstration; and

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     WHEREAS, Implementation of adjustments may require amendments to the Rhode

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Island’s Medicaid state plan and/or section 1115 waiver under the terms and conditions of the

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demonstration. Further, adoption of new or amended rules, regulations and procedures may also

 

LC005257 - Page 2 of 4

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be required; Now therefore be it:

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     RESOLVED, That the executive office of health and humans services proposes to add

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intermediate care facilities to the nursing facility tax;

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     RESOLVED, That the secretary of the executive office of health and human services is

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authorized to pursue and implement any waiver amendments, state plan amendments, and/or

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changes to the applicable department's rules, regulations and procedures approved herein and as

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authorized by Rhode Island General Laws section 42-12-4; and be it further;

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     RESOLVED, That the Secretary of State be and hereby is authorized and directed to

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transmit duly certified copies of this resolution to the governor of the State of Rhode Island and to

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the Rhode Island executive office of health and human services.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- NURSING FACILITIES PROVIDER ASSESSMENT ACT

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     This act would provide a definition for intermediate care facility for individuals with

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intellectual disabilities and would include the facilities under the nursing facility assessment and

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would include a Joint Resolution to amend the Medicaid Section 1115 Demonstration waiver

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request to authorize the addition of the intermediate care facilities to the tax.

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     This act would take effect upon passage.

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