ALABAMA DEPARTMENT OF REVENUE

TAX POLICY & RESEARCH DIVISION

810-15-1-.01     Hospital Assessment for Medicaid.

            (1)  Act 2009-549 provides for an assessment on each privately operated hospital in the state of Alabama as funding for the Alabama Medicaid program.  Assessment amounts were to be paid in 8 equal quarterly installments on the first day of each quarter of the State’s 2010 and 2011 fiscal years.  Accordingly, the first quarterly installment was to be due on October 1, 2009.

            (2)  The Act provides that the initial installment payment would not be due until the Department of Revenue has notified the affected hospitals that the State’s Hospital Funding Program has been approved by the Centers for Medicare and Medicaid Services (CMS), the 30-day verification period allowed to the hospitals had expired, and all the disproportionate share hospital payments for the fiscal year have been made.  Because the approval of CMS has not been obtained and the Department has been barred from issuing the required notice, the installment payments that would otherwise have been due from the hospitals have been in suspension status.  However, each hospital subject to the assessment will be expected to pay all quarterly installment payments, after the required notice is given.  Accordingly, all suspended installment payments will become due on the 31^st day after the notice is given.  The remaining installment payments will continue to be due as statutorily provided.

            (3)        As an alternative to the due date for the suspended installment payments on the 31^st day after notice is given, a hospital may choose to make the first four installment payments on the following dates:  August 4, 2010, August 18, 2010, September 1, 2010 and September 22, 2010.  If a hospital elects to make the first four payments on the above dates, all such payments will be considered to be timely made.  For each hospital electing to make the first four installment payments on the above dates, the fifth installment payment will be due on October 20, 2010.  The remaining three installment payments will be due as statutorily provided, on the first day of each calendar quarter.  If a hospital does not elect to make the required payments on the above alternate due dates, all the required suspended payments will be due on the 31^st day after the notice is given, and the installment payments which will be due after the notice is given, will be due as statutorily provided.  (Authority: Sections 40-2A-7(a)(5) and 40-26B-72, Code of Alabama 1975)  (History: New rule:  Filed July 23, 2010, effective August 27, 2010)          

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