97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1680

 

Introduced 2/9/2011, by Sen. Jeffrey M. Schoenberg

 

SYNOPSIS AS INTRODUCED:
 
305 ILCS 5/5A-2  from Ch. 23, par. 5A-2
305 ILCS 5/5A-14

    Amends the Hospital Provider Funding Article of the Illinois Public Aid Code. Extends the imposition of annual assessments on hospital inpatient services through State fiscal year 2016 (rather than State fiscal year 2013). Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning public aid.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Public Aid Code is amended by
5changing Sections 5A-2 and 5A-14 as follows:
 
6    (305 ILCS 5/5A-2)  (from Ch. 23, par. 5A-2)
7    (Section scheduled to be repealed on July 1, 2013)
8    Sec. 5A-2. Assessment.
9    (a) Subject to Sections 5A-3 and 5A-10, an annual
10assessment on inpatient services is imposed on each hospital
11provider in an amount equal to the hospital's occupied bed days
12multiplied by $84.19 multiplied by the proration factor for
13State fiscal year 2004 and the hospital's occupied bed days
14multiplied by $84.19 for State fiscal year 2005.
15    For State fiscal years 2004 and 2005, the Department of
16Healthcare and Family Services shall use the number of occupied
17bed days as reported by each hospital on the Annual Survey of
18Hospitals conducted by the Department of Public Health to
19calculate the hospital's annual assessment. If the sum of a
20hospital's occupied bed days is not reported on the Annual
21Survey of Hospitals or if there are data errors in the reported
22sum of a hospital's occupied bed days as determined by the
23Department of Healthcare and Family Services (formerly

 

 

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1Department of Public Aid), then the Department of Healthcare
2and Family Services may obtain the sum of occupied bed days
3from any source available, including, but not limited to,
4records maintained by the hospital provider, which may be
5inspected at all times during business hours of the day by the
6Department of Healthcare and Family Services or its duly
7authorized agents and employees.
8    Subject to Sections 5A-3 and 5A-10, for the privilege of
9engaging in the occupation of hospital provider, beginning
10August 1, 2005, an annual assessment is imposed on each
11hospital provider for State fiscal years 2006, 2007, and 2008,
12in an amount equal to 2.5835% of the hospital provider's
13adjusted gross hospital revenue for inpatient services and
142.5835% of the hospital provider's adjusted gross hospital
15revenue for outpatient services. If the hospital provider's
16adjusted gross hospital revenue is not available, then the
17Illinois Department may obtain the hospital provider's
18adjusted gross hospital revenue from any source available,
19including, but not limited to, records maintained by the
20hospital provider, which may be inspected at all times during
21business hours of the day by the Illinois Department or its
22duly authorized agents and employees.
23    Subject to Sections 5A-3 and 5A-10, for State fiscal years
242009 through 2016 2013, an annual assessment on inpatient
25services is imposed on each hospital provider in an amount
26equal to $218.38 multiplied by the difference of the hospital's

 

 

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1occupied bed days less the hospital's Medicare bed days.
2    For State fiscal years 2009 through 2016 2013, a hospital's
3occupied bed days and Medicare bed days shall be determined
4using the most recent data available from each hospital's 2005
5Medicare cost report as contained in the Healthcare Cost Report
6Information System file, for the quarter ending on December 31,
72006, without regard to any subsequent adjustments or changes
8to such data. If a hospital's 2005 Medicare cost report is not
9contained in the Healthcare Cost Report Information System,
10then the Illinois Department may obtain the hospital provider's
11occupied bed days and Medicare bed days from any source
12available, including, but not limited to, records maintained by
13the hospital provider, which may be inspected at all times
14during business hours of the day by the Illinois Department or
15its duly authorized agents and employees.
16    (b) (Blank).
17    (c) (Blank).
18    (d) Notwithstanding any of the other provisions of this
19Section, the Department is authorized, during this 94th General
20Assembly, to adopt rules to reduce the rate of any annual
21assessment imposed under this Section, as authorized by Section
225-46.2 of the Illinois Administrative Procedure Act.
23    (e) Notwithstanding any other provision of this Section,
24any plan providing for an assessment on a hospital provider as
25a permissible tax under Title XIX of the federal Social
26Security Act and Medicaid-eligible payments to hospital

 

 

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1providers from the revenues derived from that assessment shall
2be reviewed by the Illinois Department of Healthcare and Family
3Services, as the Single State Medicaid Agency required by
4federal law, to determine whether those assessments and
5hospital provider payments meet federal Medicaid standards. If
6the Department determines that the elements of the plan may
7meet federal Medicaid standards and a related State Medicaid
8Plan Amendment is prepared in a manner and form suitable for
9submission, that State Plan Amendment shall be submitted in a
10timely manner for review by the Centers for Medicare and
11Medicaid Services of the United States Department of Health and
12Human Services and subject to approval by the Centers for
13Medicare and Medicaid Services of the United States Department
14of Health and Human Services. No such plan shall become
15effective without approval by the Illinois General Assembly by
16the enactment into law of related legislation. Notwithstanding
17any other provision of this Section, the Department is
18authorized to adopt rules to reduce the rate of any annual
19assessment imposed under this Section. Any such rules may be
20adopted by the Department under Section 5-50 of the Illinois
21Administrative Procedure Act.
22(Source: P.A. 94-242, eff. 7-18-05; 94-838, eff. 6-6-06;
2395-859, eff. 8-19-08.)
 
24    (305 ILCS 5/5A-14)
25    Sec. 5A-14. Repeal of assessments and disbursements.

 

 

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1    (a) Section 5A-2 is repealed on July 1, 2016 2013.
2    (b) Section 5A-12 is repealed on July 1, 2005.
3    (c) Section 5A-12.1 is repealed on July 1, 2008.
4    (d) Section 5A-12.2 is repealed on July 1, 2013.
5    (e) Section 5A-12.3 is repealed on July 1, 2011.
6(Source: P.A. 95-859, eff. 8-19-08; 96-821, eff. 11-20-09.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.