The bill amends Sections 40-26B-21 and 40-26B-26 of the Code of Alabama 1975 to make the supplemental privilege assessment, the secondary supplemental privilege assessment, and the surcharge for nursing homes permanent by removing the sunset date of August 31, 2028. This change ensures that these assessments will continue indefinitely, as it deletes references to the sunset date in the relevant legal language. The bill also establishes that Medicaid reimbursement for nursing homes will follow the methodology outlined in Chapter 560-X-22 of the Alabama Administrative Code as of May 1, 2026. Additionally, it modifies the structure of the privilege assessments, setting the supplemental privilege assessment at an annual rate of $1,063.08 for each bed in the initial year, increasing to $1,603.08 thereafter, and establishing a surcharge of $43.75 per bed per month starting from September 20, 2012.

Furthermore, the bill introduces new provisions for nursing facilities participating in the Alabama Medicaid program, effective June 1, 2026. It mandates that revenues from the privilege assessment related to Medicaid enhancements cannot be reduced or eliminated while the assessment is in effect. The reimbursement methodology will adhere to the Alabama Administrative Code as of May 1, 2026, with adjustments to cost ceilings and provisions for calculating the Medicaid Inflation Index and specialized medical equipment costs. A quality incentive program with a minimum fund of five million dollars is also established for facilities meeting designated quality measures. The bill allows the Alabama Medicaid Agency to create a special reimbursement model for enhanced care in dedicated ventilator units and provides flexibility for adjusting ceilings in response to public health emergencies or regulatory changes, ensuring that Medicaid payments cover the costs incurred by nursing facilities.

Statutes affected:
Introduced: 40-26B-21
Enrolled: 40-26B-21