Home Table of Contents

§ 19-214. Recommendations regarding uncompensated care

West's Annotated Code of MarylandHealth--GeneralEffective: July 1, 2020 to September 30, 2020

West's Annotated Code of Maryland
Health--General
Title 19. Health Care Facilities (Refs & Annos)
Subtitle 2. Health Services Cost Review Commission (Refs & Annos)
Part II. Health Care Facility Rate Setting
Effective: July 1, 2020 to September 30, 2020
MD Code, Health - General, § 19-214
§ 19-214. Recommendations regarding uncompensated care
<Section effective until occurrence of contingency specified in Acts 2008, c. 244, § 4, and Acts 2008, c. 245, § 4. See, also, section effective upon occurrence of contingency specified in Acts 2008, c. 244, § 4, and Acts 2008, c. 245, § 4.>
In general
(a) The Commission shall assess the underlying causes of hospital uncompensated care and make recommendations to the General Assembly on the most appropriate alternatives to:
(1) Reduce uncompensated care; and
(2) Assure the integrity of the payment system.
Regulations
(b) The Commission may adopt regulations establishing alternative methods for financing the reasonable total costs of hospital uncompensated care and the disproportionate share hospital payment provided that the alternative methods:
(1) Are in the public interest;
(2) Will equitably distribute the reasonable costs of uncompensated care and the disproportionate share hospital payment;
(3) Will fairly determine the cost of reasonable uncompensated care and the disproportionate share hospital payment included in hospital rates;
(4) Will continue incentives for hospitals to adopt fair, efficient, and effective credit and collection policies; and
(5) Will not result in significantly increasing costs to Medicare or termination of the all-payer model contract.
Use of funds
(c) Any funds generated through hospital rates under an alternative method adopted by the Commission in accordance with subsection (b) of this section may only be used to finance the delivery of hospital uncompensated care and the disproportionate share hospital payment.
Assessment of rates
(d)(1) Each year, the Commission shall assess a uniform, broad-based, and reasonable amount in hospital rates to reflect the aggregate reduction in hospital uncompensated care realized from the expansion of health care coverage under Chapter 7 of the Acts of the 2007 Special Session of the General Assembly.
(2)(i) 1. The Commission shall ensure that the assessment amount equals 1.25% of projected regulated net patient revenue.
2. Each hospital shall remit its assessment amount to the Health Care Coverage Fund established under § 15-701 of this article.
(ii) Any savings realized in averted uncompensated care as a result of the expansion of health care coverage under Chapter 7 of the Acts of the 2007 Special Session of the General Assembly that are not subject to the assessment under paragraph (1) of this subsection shall be shared among purchasers of hospital services in a manner that the Commission determines is most equitable.
(3)(i) Funds generated from the assessment under this subsection may be used only to supplement coverage under the Medical Assistance Program beyond the eligibility requirements in existence on January 1, 2008.
(ii) Any funds remaining after the expenditure of funds under subparagraph (i) of this paragraph has been made may be used for the general operations of the Medicaid program.

Credits

Added as Health-General § 19-207.3 by Acts 1992, c. 375, § 1, eff. June 1, 1992. Renumbered as Health-General § 19-214 and amended by Acts 1999, c. 702, § 2, eff. Oct. 1, 1999. Amended by Acts 2007, 1st Sp. Sess., c. 7, § 1, eff. Nov. 19, 2007; Acts 2008, c. 36, § 6, eff. April 8, 2008; Acts 2008, c. 244, § 1, eff. July 1, 2008; Acts 2008, c. 245, § 1, eff. July 1, 2008; Acts 2009, c. 487, § 1, eff. June 1, 2009; Acts 2009, c. 310, § 1, eff. June 1, 2009; Acts 2009, c. 311, § 1, eff. June 1, 2009; Acts 2010, c. 72, § 1, eff. April 13, 2010; Acts 2011, c. 397, § 1, eff. June 1, 2011; Acts 2012, 1st Sp. Sess., c. 1, § 1, eff. June 1, 2012; Acts 2013, c. 159, § 2, eff. June 1, 2013; Acts 2014, c. 263, § 1, eff. July 1, 2014; Acts 2014, c. 464, § 3, eff. Oct. 1, 2014; Acts 2016, c. 321, § 3, eff. July 1, 2016; Acts 2019, c. 6, § 1, eff. June 1, 2019; Acts 2020, c. 505, § 1, eff. July 1, 2020.

Editors' Notes

ABROGATION
<Acts 2008, c. 244, and Acts 2008, c. 245, are abrogated if the State's Medicare waiver under § 1814(b) of the federal Social Security Act terminates, or the provisions of 42 C.F.R. 433.68 are changed to prohibit the assessment authorized under these Acts [Acts 2008, c. 244, and Acts 2008, c. 245] under the terms of § 4 of those Acts.>
HISTORICAL AND STATUTORY NOTES
2007 Legislation
Acts 2007, 1st Sp. Sess., c. 7, §§ 12 and 13, provide:
“SECTION 12. AND BE IT FURTHER ENACTED, That if the State's Medicare waiver under § 1814(b) of the federal Social Security Act terminates, the hospital rate assessment specified under § 19-214(d) of the Health--General Article, as enacted under Section 1 of this Act, shall terminate at the end of the fiscal year in which the waiver terminates.
“SECTION 13. AND BE IT FURTHER ENACTED, That the State shall ensure that the transfer of funds from the Maryland Health Insurance Plan Fund under Section 11 of this Act and the hospital rate assessment specified under § 19-214(d) of the Health--General Article, as enacted under Section 1 of this Act, shall be consistent with the State's Medicare waiver under § 1814(b) of the federal Social Security Act and federal regulations.’’
2008 Legislation
Acts 2008, c. 36, § 6, made stylistic changes.
Acts 2008, c. 244, §§ 2, 3, and 4, and Acts 2008, c. 245, §§ 2, 3, and 4, provide:
“SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General Assembly that the Department of Health and Mental Hygiene policy of imposing Medicaid day limits on hospital services shall cease effective July 1, 2008.
“SECTION 3. AND BE IT FURTHER ENACTED, That notwithstanding § 19-214(d)(1), (2), and (5) of the Health--General Article, as enacted by Section 1 of this Act, § 15-701 of the Health--General Article, or a delay in the expansion of health care coverage beyond July 1, 2008, under Chapter 7 of the Acts of the 2007 Special Session of the General Assembly:
“(1) funds generated from the assessment under § 19-214(d)(1)(i) of the Health--General Article, as enacted by Section 1 of this Act, may be used to pay for the elimination of Medicaid day limits on hospital services for the period of July 1, 2008, through December 31, 2008; and
“(2) the Health Services Cost Review Commission shall ensure that the assessment under § 19-214(d)(1)(i) of the Health--General Article, as enacted by Section 1 of this Act, does not exceed the savings realized in averted hospital uncompensated care from:
“(i) the health care coverage expansion; and
“(ii) the elimination of Medicaid day limits on hospital services for the period of July 1, 2008, through December 31, 2008.
“SECTION 4. AND BE IT FURTHER ENACTED, That if the State's Medicare waiver under § 1814(b) of the federal Social Security Act terminates or the provisions of 42 C.F.R. 433.68 are changed to prohibit the assessment authorized under this Act, this Act shall be abrogated and of no further force and effect.”
MD Code, Health - General, § 19-214, MD HEALTH GEN § 19-214
Current through legislation effective July 1, 2020, from the 2020 Regular Session of the General Assembly.
End of Document© 2020 Thomson Reuters. No claim to original U.S. Government Works.