Kansas 2025-2026 Regular Session

Kansas House Bill HB2250 Compare Versions

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1	1	Session of 2025
2	2	HOUSE BILL No. 2250
3	3	By Committee on Health and Human Services
4	4	Requested by Representative W. Carpenter on behalf of the Kansas Hospital
5	5	Association
6	6	2-4
7	7	AN ACT relating to health and healthcare; concerning hospital providers;
8	8	increasing the annual assessment on services rate on inpatient and
9	9	outpatient revenue; expanding exemptions for such assessment;
10	10	amending K.S.A. 65-6210 and K.S.A. 2024 Supp. 65-6208 and 65-
11	11	6209 and repealing the existing sections.
12	12	Be it enacted by the Legislature of the State of Kansas:
13	13	Section 1. K.S.A. 2024 Supp. 65-6208 is hereby amended to read as
14	14	follows: 65-6208. (a) Subject to the provisions of K.S.A. 65-6209, and
15	15	amendments thereto, an annual assessment on services is imposed on each
16	16	hospital provider in an amount not less than 1.83% of each hospital's net
17	17	inpatient operating revenue and not greater than 3% 6% of each hospital's
18	18	net inpatient and outpatient operating revenue, as determined by the
19	19	healthcare access improvement panel in consultation with the department
20	20	of health and environment, for the hospital's fiscal year three years prior to
21	21	the assessment year. In the event that a hospital does not have a complete
22	22	12-month fiscal year in such third prior fiscal year, the assessment under
23	23	this section shall be $200,000 until such date that such hospital has
24	24	completed the hospital's first 12-month fiscal year. Upon completing such
25	25	first 12-month fiscal year, such hospital's assessment under this section
26	26	shall be the amount not less than 1.83% of each hospital's net inpatient
27	27	operating revenue and not greater than 3% 6% of such hospital's net
28	28	inpatient and outpatient operating revenue, as determined by the healthcare
29	29	access improvement panel in consultation with the department of health
30	30	and environment, for such first completed 12-month fiscal year.
31	31	(b) Nothing in this act shall be construed to authorize any home rule
32	32	unit or other unit of local government to license for revenue or impose a
33	33	tax or assessment upon hospital providers or a tax or assessment measured
34	34	by the income or earnings of a hospital provider.
35	35	(c) (1) The department of health and environment shall submit to the
36	36	United States centers for medicare and medicaid services any approval
37	37	request necessary to implement the amendments made to subsection (a) by
38	38	section 1 of chapter 7 of the 2020 Session Laws of Kansas and this act. If
39	39	the department has submitted such a request pursuant to section 80(l) of
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74	74	chapter 68 of the 2019 Session Laws of Kansas or section 1 of chapter 7 of
75	75	the 2020 Session Laws of Kansas, then the department may continue such
76	76	request, or modify such request to conform to the amendments made to
77	77	subsection (a) by section 1 of chapter 7 of the 2020 Session Laws of
78	78	Kansas and this act, to fulfill the requirements of this paragraph.
79	79	(2) The secretary of health and environment shall certify to the
80	80	secretary of state the receipt of such approval and cause notice of such
81	81	approval to be published in the Kansas register.
82	82	(3) The amendments made to subsection (a) by section 1 of chapter 7
83	83	of the 2020 Session Laws of Kansas and this act shall take effect on and
84	84	after January 1 or July 1 immediately following such publication of such
85	85	approval.
86	86	Sec. 2. K.S.A. 2024 Supp. 65-6209 is hereby amended to read as
87	87	follows: 65-6209. (a) A hospital provider that is a state agency, the
88	88	authority, as defined in K.S.A. 76-3304, and amendments thereto, a state
89	89	educational institution, as defined in K.S.A. 76-711, and amendments
90	90	thereto, a critical access hospital, as defined in K.S.A. 65-468, and
91	91	amendments thereto, with revenues below the threshold determined by the
92	92	healthcare access improvement panel, or a rural emergency hospital
93	93	licensed under the rural emergency hospital act, K.S.A. 2024 Supp. 65-481
94	94	et seq., and amendments thereto, with revenues below the threshold
95	95	determined by the healthcare access improvement panel, is exempt from
96	96	the assessment imposed by K.S.A. 65-6208, and amendments thereto.
97	97	(b) A hospital operated by the department in the course of performing
98	98	its mental health or developmental disabilities functions is exempt from
99	99	the assessment imposed by K.S.A. 65-6208, and amendments thereto.
100	100	Sec. 3. K.S.A. 65-6210 is hereby amended to read as follows: 65-
101	101	6210. (a) The assessment imposed by K.S.A. 65-6208, and amendments
102	102	thereto, for any state fiscal year to which this statute applies shall be due
103	103	and payable in equal installments on or before June May 30 and December
104	104	31 November 30, commencing with whichever date first occurs after the
105	105	hospital has received payments for 150 days after the effective date of the
106	106	payment methodology approved by the centers for medicare and medicaid
107	107	services. No installment payment of an assessment under this act shall be
108	108	due and payable, however, until after:
109	109	(1) The hospital provider receives written notice from the department
110	110	that the payment methodologies to hospitals required under this act have
111	111	been approved by the centers for medicare and medicaid services of the
112	112	United States department of health and human services under 42 C.F.R. §
113	113	433.68 for the assessment imposed by K.S.A. 65-6208, and amendments
114	114	thereto, has been granted by the centers for medicare and medicaid
115	115	services of the United States department of health and human services; and
116	116	(2) in the case of a hospital provider, the hospital has received
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160	160	payments for 150 days after the effective date of the payment methodology
161	161	approved by the centers for medicare and medicaid services.
162	162	(b) The department is authorized to establish delayed payment
163	163	schedules for hospital providers that are unable to make installment
164	164	payments when due under this section due to financial difficulties, as
165	165	determined by the department.
166	166	(c) If a hospital provider fails to pay the full amount of an installment
167	167	when due, including any extensions granted under this section, there shall
168	168	be added to the assessment imposed by K.S.A. 65-6208, and amendments
169	169	thereto, unless waived by the department for reasonable cause, a penalty
170	170	assessment equal to the lesser of:
171	171	(1) An amount equal to 5% of the installment amount not paid on or
172	172	before the due date plus 5% of the portion thereof remaining unpaid on the
173	173	last day of each month thereafter; or
174	174	(2) an amount equal to 100% of the installment amount not paid on or
175	175	before the due date.
176	176	For purposes of this subsection (c), payments will shall be credited first
177	177	to unpaid installment amounts, rather than to penalty or interest amounts,
178	178	beginning with the most delinquent installment.
179	179	(d) The department is authorized to take legal action against any
180	180	hospital that fails to pay the amount due, including penalties, upon
181	181	recommendation of the healthcare access improvement program panel,
182	182	unless such hospital has established and is compliant with a payment
183	183	schedule approved by the department.
184	184	(e) The effective date for the payment methodology applicable to
185	185	hospital providers approved by the centers for medicare and medicaid
186	186	services shall be the date of July 1 or January 1, whichever date is
187	187	designated in the state plan submitted by the department of health and
188	188	environment for approval by the centers for medicare and medicaid
189	189	services.
190	190	Sec. 4. K.S.A. 65-6210 and K.S.A. 2024 Supp. 65-6208 and 65-6209
191	191	are hereby repealed.
192	192	Sec. 5. This act shall take effect and be in force from and after its
193	193	publication in the statute book.
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