Bill > H6095

This bill imposes a hospital licensing fee for fiscal year 2026 on non-government owned hospitals, creating a three-tiered fee structure based on inpatient and outpatient net patient-services revenue. The executive office of health and human services, working with the tax administrator, will identify and notify hospitals of their assigned tier by July 15, 2025, and August 1, 2025, respectively. The tiers are defined as follows: Tier 1 includes hospitals not meeting Tier 2 or Tier 3 criteria and will be charged 13.12% for inpatient and 13.30% for outpatient revenue; Tier 2 consists of high Medicaid/uninsured cost and independent hospitals, with fees of 2.63% for inpatient and 2.66% for outpatient revenue; and Tier 3 comprises Medicare-designated low-volume and rehabilitative hospitals, with fees of 1.31% for inpatient and 1.33% for outpatient revenue. The bill specifies that any funds collected over $90 million will be used to increase Medicaid reimbursements for hospitals, including upper payment limit payments, disproportionate share hospital payments, rate increases, and state-directed managed care payments. The licensing fee will be administered by the tax administrator, with hospitals required to pay electronically by June 30 of each fiscal year and submit returns by August 1, 2025. The bill also adds a provision authorizing the executive office of health and human services to maintain state-directed managed care payments to hospitals.

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