This bill amends and reenacts section 11-27-10a of the Code of West Virginia, 1931, to adjust the tax rates imposed on health maintenance organizations (HMOs) operating within the state. The bill specifies that the tax rates will be increased for the period from July 1, 2022, through June 30, 2025, with new rates established for each tier of Medicaid member months and non-Medicaid member months. For instance, Tier I will see a rate of $36.26 for each Medicaid member month under 250,000, while Tier II will be $20.72 for each Medicaid member month between 250,000 and 500,000. Additionally, the bill introduces new rates for the period from July 1, 2025, through June 30, 2026, with Tier I set at $78.75 and Tier II at $45.00, among others.

Furthermore, the bill outlines a process for maintaining these tax rates beyond June 30, 2026, by applying a uniform multiple to ensure compliance with federal regulations. It mandates that the Commissioner of the West Virginia Bureau for Medical Services will certify the adjusted tax rates necessary to maintain compliance with federal law, and the Tax Commissioner will publish these rates annually. The bill also includes provisions regarding the effective date of the tax, which will be contingent upon federal approval, and stipulates that no taxes may be collected until the federal Centers for Medicare and Medicaid Services has approved the proposed Medicaid rates as actuarially sound.

Statutes affected:
Introduced Version: 11-27-10a
Committee Substitute for the Committee Substitute: 11-27-10a
Committee Substitute: 11-27-10a
Engrossed Committee Substitute: 11-27-10a