HP0752, LD 1016, item 1, An Act To Restore the Health Care Provider Tax for Nursing Homes to 6 Percent

An Act To Restore the Health Care Provider Tax for Nursing Homes to 6 Percent

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 36 MRSA §2872, sub-§2, ¶C, as amended by PL 2007, c. 539, Pt. X, §2, is further amended to read:

C. For whole or partial facility fiscal years beginning on or after July 1, 2003 and before January 1, 2008, the tax imposed against each nursing home is equal to 6% of its annual net operating revenue for the corresponding whole or partial facility fiscal year; and

Sec. 2. 36 MRSA §2872, sub-§2, ¶D, as enacted by PL 2007, c. 539, Pt. X, §2, is amended to read:

D. Beginning For whole or partial facility fiscal years beginning on or after January 1, 2008 for any partial facility fiscal year and for whole facility fiscal years beginning on or after January 1, 2008 and before October 1, 2011, the tax imposed against each nursing home is equal to 5.5% of its annual net operating revenue for the corresponding whole or partial facility fiscal year . ; and

Sec. 3. 36 MRSA §2872, sub-§2, ¶E is enacted to read:

E. Beginning October 1, 2011 for any partial facility fiscal year and for whole facility fiscal years beginning on or after October 1, 2011, the tax imposed against each nursing home is equal to 6% of its annual net operating revenue for the corresponding whole or partial facility fiscal year.

Sec. 4. 36 MRSA §2873, sub-§4, as enacted by PL 2001, c. 714, Pt. CC, §3 and affected by §8 and amended by PL 2003, c. 689, Pt. B, §§6 and 7, is further amended to read:

4. Application of revenues. Revenues derived by the tax imposed by this chapter must be credited to a General Fund suspense account. On the last day of each month, the State Controller shall make the following transfers:

A. All Beginning October 1, 2011, all revenues received by the assessor during the month pursuant to this chapter from nursing homes net of refunds must be credited to the Nursing Facilities Other Special Revenue funds account in the Department of Health and Human Services . The Commissioner of Health and Human Services is authorized to make revenue transfers from the Nursing Facilities Other Special Revenue funds account to the Medical Care - Payments to Providers Other Special Revenue funds account and the Long Term Care - Human Services Other Special Revenue funds account in amounts not to exceed legislative allocations in any fiscal year and all revenues credited to such account must be applied to provide cost-of-living increases to MaineCare reimbursement to nursing homes and to medical and remedial private nonmedical institutions that are reimbursed room and board costs and certain other allowable costs under rules adopted by the Department of Health and Human Services; and

B. All revenues received by the assessor during the month pursuant to this chapter from residential treatment facilities net of refunds must be credited to the Residential Treatment Facilities Assessment Other Special Revenue funds account in the Department of Health and Human Services.

Notwithstanding the provisions of Public Law 2007, chapter 240, Part X, section 2, Public Law 2009, chapter 213, Part SSSS, section 1 or any other provision of law, any available balances in the accounts under this subsection may not be transferred between accounts by financial order or otherwise.

summary

Federal law permits states to use provider-specific taxes to fund their state shares of Medicaid expenses subject to certain limitations. This bill amends existing provisions effective October 1, 2011, increasing the provider tax rate applicable to nursing home from 5.5% to 6%, consistent with applicable federal requirements, and repealing authorization for the Commissioner of Health and Human Services to transfer funds received from nursing facilities that are credited to the Nursing Facility Other Special Revenue funds account in the Department of Health and Human Services.

It requires that funds received from this increased provider tax be applied to provide cost-of-living increases to MaineCare reimbursement to nursing homes and medical and remedial private nonmedical institutions that are reimbursed room and board costs and certain other allowable costs under rules adopted by the Department of Health and Human Services and may not be transferred for other purposes.

HP0752 LD 1016	First Regular Session - 125th Maine Legislature		LR 920 Item 1
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