Bill > HB4981

This bill amends West Virginia code §11-27-38 to redefine what constitutes a "state-designated facility" for the purpose of a specific tax on hospitals. Previously, this definition excluded state-owned or state-designated facilities, critical access hospitals, free-standing psychiatric or medical rehabilitation hospitals, long-term acute care hospitals, and certain other designated facilities. However, this bill adds a provision that a licensed psychiatric hospital will now qualify as a "state-designated facility" if it primarily treats court-ordered forensic and civil involuntary commitments from state custody or state-owned hospitals, meaning over 95% of its average annual inpatient patient mix consists of these specific types of patients. This change is significant because it impacts which hospitals are considered "eligible acute care hospitals" subject to an additional tax of 0.75% on their gross receipts, a tax intended to provide non-federal funding for the state's Medicaid program through a directed payment program, which is a mechanism used to increase federal matching funds for Medicaid services. The bill also clarifies that these changes are effective upon approval by the Centers for Medicare and Medicaid Services (CMS), the federal agency overseeing the Medicaid program.

Budget and Finance

http://www.wvlegislature.gov/Bill_Status/Bills_history.cfm?input=4981&year=2026&sessiontype=RS&btype=bill