MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Public Health and Welfare

By: Representative Bourdeaux

AN ACT TO AMEND SECTION 43-13-145, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT NURSING FACILITIES MEETING CERTAIN REQUIREMENTS SHALL BE EXEMPT FROM THE NURSING FACILITY ASSESSMENT; TO PROVIDE THAT THE EXEMPTION SHALL STAND REPEALED UNDER CERTAIN CIRCUMSTANCES; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 43-13-145, Mississippi Code of 1972, is amended as follows:

43-13-145. (1) (a) Upon each nursing facility licensed by the State of Mississippi, except those nursing facilities exempt by paragraph (b) of this subsection, and each intermediate care facility for the mentally retarded licensed by the State of Mississippi, there is levied an assessment in an amount set by the division not exceeding Two Dollars ($2.00) per day, or fraction thereof, for each patient in a licensed bed of the facility. The division may apply for a waiver from the U.S. Secretary of Health and Human Services to exempt nonprofit, public, charitable or religious facilities from the assessment levied under this subsection, and if a waiver is granted, such facilities shall be exempt from any assessment levied under this subsection after the date that the division receives notice that the waiver has been granted.

(b) Nursing facilities that meet all of the following requirements shall be exempt from the assessment levied under paragraph (a) of this subsection:

(i) Meet the requirements of Section 501(c)(3) of the United States Internal Revenue Code;

(ii) Do not participate in the Medicaid program;

(iii) Are operated by or affiliated with a church or religious organization; and

(iv) Are exempt from Mississippi sales taxes pursuant to Section 27-65-111(e) and Sales and Use Tax Rule 61.

The Legislature finds that exempting the small number of nursing facilities that meet all of the requirements of subparagraphs (i) through (iv) above from the assessment levied under paragraph (a) of this subsection would not prevent the net impact of that assessment and associated expenditures from being generally redistributive in nature and would not cause the amount of the assessment to be directly correlated to payments under the Medicaid program. Instead, this exemption would permit a limited number of nursing facilities to continue to offer nursing care to persons who otherwise would rely on the Medicaid program to pay for nursing care.

(c) The exemption authorized under paragraph (b) shall stand repealed if at any time after July 1, 1998, the Federal Government determines that the assessment levied under paragraph (a) of this subsection is not a broad based, uniformly imposed health care related tax because of the exemption authorized under paragraph (b) of this subsection, and notifies the Division of Medicaid that it intends to reduce the total state Medicaid expenditures eligible for federal financial participation under the Medicaid program by the amount of revenue generated from the assessment levied under paragraph (a) of this subsection for that reason. In that case, paragraph (b) shall stand repealed on the date that the federal government would otherwise begin the reduction of total state Medicaid expenditures eligible for federal financial participation, and the nursing facilities exempted under paragraph (b) shall begin paying the assessment after the date of the repeal.

(2) The assessment levied under this section shall be collected by the division each quarter beginning on July 1, 1992, and shall be based on data for the quarter ending three (3) months before the date the assessments are to be collected.

(3) All assessments collected under this section shall be deposited in the Medical Care Fund created by Section 43-13-143.

(4) The assessment levied under this section shall be in addition to any other assessments, taxes or fees levied by law.

(5) The assessment levied under this section shall constitute a debt due the State of Mississippi from the time the assessment is due until it is paid. If any facility liable for payment of such assessment does not pay the assessment when it is due, the division shall give written notice to the facility demanding payment of the assessment within ten (10) days from the date of delivery of the notice. Such notice shall be sent by certified or registered mail or delivered to the facility by an agent of the division. If any facility liable for the assessment fails or refuses to pay it after receiving the notice and demand, the division may withhold the Medicaid reimbursement payments that are otherwise scheduled to be made to the facility from the time the assessment is due until it is paid by the facility.

SECTION 2. Nothing in this act shall affect or defeat any claim, suit, right or cause of action for assessments due or accrued under Section 43-13-145 before the date on which this act becomes effective, whether such claims, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of Section 43-13-145 are expressly continued in full force, effect and operation for the purpose of the collection of any assessments due or accrued before the date on which this act becomes effective.

SECTION 3. This act shall take effect and be in force from and after July 1, 1998.