Researcher: RP Page 1 4/25/22
OLR Bill Analysis
sSB 441
AN ACT CONCERNING A CREDIT FOR AMBULATORY SURGICAL
CENTERS.
SUMMARY
This bill authorizes a refundable state tax credit against the
ambulatory surgical center (ASC) gross receipts tax based on a portion
of the (1) Medicaid payments the ASC received and (2) payments it
received from ASC services provided to individuals covered under the
state employee health plan or municipal employees health insurance
program (MEHIP).
The bill also makes a technical correction to the effective date of a
provision in the FY 22-23 budget implementer act authorizing ASCs to
file written refund claims (PA 21-2, June Special Session, § 465).
EFFECTIVE DATE: July 1, 2023, and applicable to calendar quarters
beginning on or after July 1, 2023, except the technical correction is
effective upon passage.
ASC TAX CREDIT
Under the bill, the tax credit is equal to the sum of the ASC’s
“Medicaid investment” and “state health plan investment”:
1. The “Medicaid investment” is an amount, selected by each ASC,
equal to 50% of the (a) aggregate Medicaid payments the ASC
received during the applicable reporting period for ASC services
or (b) difference between these payments and the aggregate
Medicaid payments that would have been received by a hospital
during the reporting period if substantially similar services had
been performed there.
2. The “state health plan investment” is 25% of the aggregate
payments received from or on behalf of each individual covered 2022SB-00441-R000617-BA.DOCX
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under the state employee health plan or MEHIP for providing
ASC services.
If the credit amount allowed exceeds the ASC’s gross receipts tax
liability for the reporting period, the ASC must file a refund claim with
the Department of Revenue Services (DRS), according to the statutory
process for making these claims. After verifying the claim, the DRS
commissioner must treat the excess as an overpayment and refund it to
the ASC without interest.
BACKGROUND
ASC Services
By law, “ASC services” are the procedures and services included in a
facility fee payment to an ASC that are (1) associated with a surgical
procedure and (2) not reimbursable ancillary or professional procedures
or services. They include facility services only and exclude surgical
procedures and physicians’, anesthetists’, radiology, diagnostic, and
ambulance services separately reimbursed to an ASC from the facility
fee payment.
Related Bill
sHB 5475 (§ 44), favorably reported by the Finance, Revenue and
Bonding Committee, includes the same correction to the ASC filing
effective date provision.
COMMITTEE ACTION
Finance, Revenue and Bonding Committee
Joint Favorable Substitute
Yea 51 Nay 0 (04/06/2022)