REQUIRES TWO-THIRDS MAJORITY VOTE (§ 6) S.B. 424 - *SB424* SENATE BILL NO. 424–COMMITTEE ON HEALTH AND HUMAN SERVICES MARCH 24, 2025 ____________ Referred to Committee on Health and Human Services SUMMARY—Requires an assessment to be imposed on private emergency medical transport providers. (BDR 38-561) FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to health care; requiring the Division of Health Care Financing and Policy of the Department of Health and Human Services to impose an assessment on private emergency medical transport providers; creating the Account to Improve Emergency Medical Transportation Quality and Access; prescribing the authorized uses of the revenue generated by the assessment; requiring the Division to adopt regulations establishing administrative penalties; authorizing the Division to collect an unpaid assessment or administrative penalty; authorizing certain health authorities to impose administrative penalties or take other disciplinary actions in certain circumstances; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law authorizes the Division of Health Care Financing and Policy of the 1 Department of Health and Human Services to impose, in certain circumstances, an 2 assessment on agencies to provide personal care services in the home or medical 3 facilities that are required to obtain a certain type of license. (NRS 422.3794) 4 Existing law requires the Division to expend the revenue generated from the 5 assessment to: (1) provide supplemental payments and enhanced rates of 6 reimbursement to operators of agencies to provide personal care services in the 7 home and operators of medical facilities for services rendered to recipients of 8 Medicaid; (2) fund certain additional supports and services under Medicaid; and (3) 9 pay administrative costs. (NRS 422.37945) Sections 2-9 of this bill require the 10 imposition of a similar assessment on private emergency medical transport 11 providers. Section 6 requires: (1) the percentage of the assessment to be based on a 12 – 2 – - *SB424* percentage of net revenue earned by the private emergency medical transport 13 service from providing services in this State; and (2) the Division to set the amount 14 of the percentage of the assessment by regulation, subject to certain requirements. 15 Section 7 creates the Account to Improve Emergency Medical Transportation 16 Quality and Access. Section 7 requires the Division to administer the Account and 17 to deposit the proceeds collected from the assessment into the Account. Section 7 18 provides that money in the Account may only be expended to: (1) provide enhanced 19 rates of reimbursement under Medicaid to private emergency medical transport 20 providers for providing emergency ambulance services to recipients of Medicaid; 21 (2) fund certain data infrastructure improvements and educational and community 22 outreach initiatives undertaken by the Department; and (3) pay administrative costs 23 related to the assessment. If the Legislature authorizes the money in the Account to 24 be used for any other purpose, section 7: (1) requires that the Division cease 25 imposing the assessment; and (2) provides that the regulations adopted to impose 26 the assessment are void. 27 Section 8 requires the Division to adopt regulations establishing administrative 28 penalties against a private emergency medical transport provider that fails to pay an 29 assessment in a timely manner. Section 8 authorizes the Division, after notifying 30 the provider, to: (1) deduct the amount of an unpaid assessment or administrative 31 penalty from future payments owed to the private emergency transport provider 32 under Medicaid; and (2) negotiate a payment plan with a delinquent private 33 emergency medical transport provider before making such deductions. Section 8 34 also requires the Division to notify the health authority that issued a private 35 emergency medical transport provider a permit to own or operate an ambulance or 36 air ambulance in this State if the provider has failed to pay an assessment or 37 administrative penalty in a timely manner. Section 11 of this bill authorizes the 38 applicable health authority to, after receiving such a notification from the Division, 39 take certain disciplinary actions against the private emergency medical transport 40 provider. 41 Section 9 authorizes the Division to modify the amount of the assessment, the 42 enhanced rates of reimbursement or any other requirement established by sections 43 2-9 as necessary to receive federal financial participation to carry out the provisions 44 of sections 2-9. Section 9 also requires the suspension of the assessment and the 45 payment of enhanced rates of reimbursement upon the occurrence of certain events. 46 Section 9 requires the retroactive reimposition of such assessments and payments 47 when the event triggering the suspension is no longer applicable. 48 Sections 3, 4 and 5 define certain terms and section 2 establishes the 49 applicability of those definitions. Section 10 of this bill requires the Director of the 50 Department to administer the provisions of sections 2-9 in the same manner as 51 other provisions relating to Medicaid. 52 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 422 of NRS is hereby amended by adding 1 thereto the provisions set forth as sections 2 to 9, inclusive, of this 2 act. 3 Sec. 2. As used in sections 2 to 9, inclusive, of this act, unless 4 the context otherwise requires, the words and terms defined in 5 sections 3, 4 and 5 of this act have the meanings ascribed to them 6 in those sections. 7 – 3 – - *SB424* Sec. 3. “Account” means the Account to Improve Emergency 1 Medical Transportation Quality and Access created by section 7 of 2 this act. 3 Sec. 4. “Emergency ambulance service”: 4 1. Means the transportation by ambulance or air ambulance 5 of a person who is experiencing a medical emergency to a medical 6 facility; 7 2. Includes the rendering of medical care by a paramedic, as 8 defined in NRS 450B.095, emergency medical technician, as 9 defined in NRS 450B.065, or advanced emergency medical 10 technician, as defined in NRS 450B.025, in connection with the 11 transportation of the person; and 12 3. Does not include transportation provided under non-13 emergency circumstances. 14 Sec. 5. “Private emergency medical transport provider” 15 means a person or entity that: 16 1. Provides or renders emergency ambulance services in this 17 State; 18 2. Holds a permit issued pursuant to the provisions of chapter 19 450B of NRS; and 20 3. Is not owned or operated by a federal, state or local 21 governmental entity or a federally recognized tribe. 22 Sec. 6. 1. Except as otherwise provided in subsection 4 and 23 sections 7 and 9 of this act, the Division shall impose by regulation 24 against each private emergency medical transport provider an 25 assessment in an amount equal to a percentage of the net revenue 26 earned by a private emergency medical transport provider from 27 providing emergency ambulance services in this State during a 28 calendar or fiscal year. The Division shall adopt: 29 (a) Regulations prescribing the percentage that must be used 30 to calculate the amount of the assessment, the date on which the 31 assessment is due and the manner in which the assessment must 32 be paid; and 33 (b) Any other regulations necessary or convenient to carry out 34 the provisions of this section. 35 2. The amount of the assessment imposed pursuant to 36 subsection 1: 37 (a) Except as otherwise provided in paragraph (b), must be 38 equal to the maximum percentage authorized under federal law; 39 and 40 (b) Except where necessary pursuant to subsection 1 of section 41 9 of this act, must not exceed 5.5 percent of the net revenue earned 42 by a private emergency medical transport provider from providing 43 emergency ambulance services in this State during a calendar or 44 fiscal year. 45 – 4 – - *SB424* 3. The revenue from an assessment imposed pursuant to 1 subsection 1 must be deposited into the Account. 2 4. An assessment imposed pursuant to subsection 1 must 3 comply with the provisions of 42 C.F.R. § 433.68. An assessment 4 must not be imposed pursuant to subsection 1 if federal law or 5 regulations prohibit using the revenue generated by the 6 assessment for the purposes described in section 7 of this act. If 7 new federal law or regulations imposing such a prohibition are 8 enacted or adopted, as applicable: 9 (a) An assessment must not be collected after the effective date 10 of the law or regulations; and 11 (b) Any money collected during the calendar or fiscal year, as 12 applicable, in which the federal law or regulations become 13 effective must be returned to the private emergency medical 14 transport providers from whom it was collected. 15 5. A private emergency medical transport provider shall 16 submit to the Division any information requested by the Division 17 at such times as are determined by the Division for the purposes of 18 carrying out the provisions of this section. Such information may 19 include, without limitation: 20 (a) The number of emergency ambulance service trips 21 provided in this State by the private emergency medical transport 22 provider; and 23 (b) The total net revenue earned by the private emergency 24 medical transport provider for the emergency ambulance services 25 described in paragraph (a). 26 6. A private emergency medical transport provider shall keep 27 and maintain accurate records as necessary to support the 28 accuracy of information requested by Division pursuant to this 29 section. 30 7. As used in this section: 31 (a) “Cash basis” means the system of accounting under which 32 revenues are recorded only when received and expenditures or 33 expenses are recorded only when paid. 34 (b) “Net revenue” means net patient revenue collected by a 35 private emergency medical transport provider that is attributable 36 to the rendering of emergency ambulance services, determined on 37 a cash basis of accounting. 38 Sec. 7. 1. The Account to Improve Emergency Medical 39 Transportation Quality and Access is hereby created in the State 40 General Fund. The Division shall administer the Account. The 41 revenue from assessments and penalties imposed on private 42 emergency medical transport providers pursuant to sections 6 and 43 8, respectively, of this act must be accounted for separately in the 44 Account. 45 – 5 – - *SB424* 2. The interest and income earned on the money in the 1 Account, after deducting any applicable charges, must be credited 2 to the Account. 3 3. The money in the Account must only be expended to: 4 (a) Provide enhanced rates of reimbursement to private 5 emergency medical transport providers that provide emergency 6 ambulance services to recipients of Medicaid; 7 (b) Provide funding to allow the Department to: 8 (1) Modernize processes and infrastructure relating to the 9 collection and maintenance of data that is useful for purposes 10 relating to public health; 11 (2) Provide education to the public relating to emergency 12 medical services; and 13 (3) Conduct community outreach to improve public health; 14 and 15 (c) Carry out the provisions of sections 2 to 9, inclusive, of this 16 act. 17 4. Any enhanced rates of reimbursement established 18 pursuant to paragraph (a) of subsection 3 may be provided 19 through any or all of the following means: 20 (a) Increases to rates of reimbursement paid to private 21 emergency medical transport providers who receive such 22 reimbursement on a fee-for-service basis. 23 (b) The establishment of minimum fees to be paid to private 24 emergency medical transport providers who provide services to 25 recipients of Medicaid under the Medicaid managed care program 26 established pursuant to NRS 422.273. 27 (c) Direct payments to private emergency medical transport 28 providers who provide services to recipients of Medicaid under the 29 Medicaid managed care program established pursuant to 30 NRS 422.273. 31 5. Not more than 10 percent of the total amount of money 32 generated each year by the assessment imposed pursuant to 33 section 6 of this act may be expended for the purposes described in 34 paragraphs (b) and (c) of subsection 3. Money allocated for such 35 expenditures must be used first for the purpose described in 36 paragraph (c) of subsection 3. If money allocated for such 37 expenditures remains after all necessary expenditures are made 38 for that purpose, the Division shall expend the remaining money 39 for the purposes described in paragraph (b) of subsection 3. 40 6. Any money remaining in the Account at the end of a fiscal 41 year does not revert to the State General Fund, and the balance in 42 the Account must be carried forward to the next fiscal year. 43 – 6 – - *SB424* 7. Money in the Account must not be expended to replace 1 money that would otherwise be used to provide reimbursement 2 under Medicaid to private emergency medical transport providers. 3 8. The Director shall seek any necessary federal authority to 4 capture all available financial federal participation to carry out 5 the purposes described in paragraph (b) of subsection 3. 6 9. If the Legislature authorizes money in the Account to be 7 used for any purpose other than those authorized by subsection 3: 8 (a) The Division shall cease imposing the assessment provided 9 by section 6 of this act; and 10 (b) The regulations adopted to impose the assessment pursuant 11 to section 6 of this act are void. 12 Sec. 8. 1. The Division shall adopt regulations that 13 establish administrative penalties for the failure to timely pay any 14 assessment imposed pursuant to section 6 of this act. Any money 15 collected from administrative penalties imposed pursuant to this 16 subsection must be deposited into the Account. 17 2. If a private emergency medical transport provider fails to 18 remit to the Division any penalty imposed pursuant to subsection 1 19 or any assessment imposed pursuant to section 6 of this act within 20 30 days after the date on which the penalty or assessment is due, 21 as applicable, the Division: 22 (a) May deduct the amount of the penalty or assessment, as 23 applicable, from any future payment owed to the private 24 emergency medical transport provider under Medicaid; and 25 (b) Shall notify each health authority of this State that has 26 issued the private emergency medical transport provider a permit 27 to operate an ambulance or air ambulance, as applicable, that the 28 private emergency medical transport provider has failed to pay a 29 penalty or assessment, as applicable. 30 3. Before taking any action described in subsection 2, the 31 Division: 32 (a) Shall notify the private emergency medical transport 33 provider of the action that the Division intends to take, the specific 34 reason for the action and, where applicable, the amount of the 35 penalty or assessment that will be deducted; and 36 (b) May negotiate a payment plan with the private emergency 37 medical transport provider. 38 4. As used in this section, “health authority” has the meaning 39 ascribed to it in NRS 450B.077. 40 Sec. 9. 1. The Division may modify the percentage of the 41 assessment imposed on private emergency medical transport 42 providers pursuant to section 6 of this act, the amount of any 43 enhanced rate of reimbursement described in paragraph (a) of 44 subsection 3 of section 7 of this act or any other requirement or 45 – 7 – - *SB424* formula established pursuant to sections 2 to 9, inclusive, of this 1 act to the extent necessary to obtain federal financial participation 2 for the enhanced rates of reimbursement described in paragraph 3 (a) of subsection 3 of section 7 of this act. Such modifications 4 must not result in the collection of assessments in an amount 5 greater than is required for the purposes prescribed by subsection 6 3 of section 7 of this act. 7 2. The Division shall take the actions described in subsection 8 3 after determining that: 9 (a) The amount of funding available for the reimbursement of 10 private emergency medical transport providers has decreased 11 below the level of funding that was available for that purpose 12 during the fiscal year ending on June 30, 2025; 13 (b) The rate of reimbursement under Medicaid for emergency 14 ambulance services has decreased below the rate of 15 reimbursement established under Medicaid for emergency 16 ambulance services as of June 30, 2022; 17 (c) Federal financial participation is not available for the 18 payment of enhanced rates of reimbursement described in 19 paragraph (a) of subsection 3 of section 7 of this act; or 20 (d) The revenue collected from assessments imposed pursuant 21 to section 6 of this act will be insufficient for the purposes 22 described in paragraphs (a) and (c) of subsection 3 of section 7 of 23 this act. 24 3. If the Division makes a determination described in 25 subsection 2, the Division shall: 26 (a) Immediately cease collecting the assessment otherwise 27 required to be imposed pursuant to section 6 of this act; 28 (b) Immediately cease using the money generated through that 29 assessment for the purposes described in subsection 3 of section 7 30 of this act; and 31 (c) Return any money collected through the assessment 32 imposed pursuant to section 6 of this act that the Division is 33 prohibited by paragraph (b) from using for the purposes described 34 in subsection 3 of section 7 of this act to the private emergency 35 medical transport provider from whom it was collected. 36 4. If the Division, after suspending the collection of 37 assessments and the payment of enhanced rates of reimbursement 38 pursuant to subsection 3, determines that the provisions of 39 subsection 2 no longer apply, the Division shall: 40 (a) Resume collecting assessments pursuant to section 6 of this 41 act; 42 (b) Resume payment of the enhanced rates of reimbursement 43 described in paragraph (a) of subsection 3 of section 7 of this act; 44 and 45 – 8 – - *SB424* (c) Establish, for the period of time during which such 1 assessments and payments were suspended pursuant to subsection 2 3, a schedule for the retroactive: 3 (1) Collection of assessments pursuant to section 6 of this 4 act; and 5 (2) Payment of enhanced rates of reimbursement pursuant 6 to paragraph (a) of subsection 3 of section 7 of this act. 7 Sec. 10. NRS 232.320 is hereby amended to read as follows: 8 232.320 1. The Director: 9 (a) Shall appoint, with the consent of the Governor, 10 administrators of the divisions of the Department, who are 11 respectively designated as follows: 12 (1) The Administrator of the Aging and Disability Services 13 Division; 14 (2) The Administrator of the Division of Welfare and 15 Supportive Services; 16 (3) The Administrator of the Division of Child and Family 17 Services; 18 (4) The Administrator of the Division of Health Care 19 Financing and Policy; and 20 (5) The Administrator of the Division of Public and 21 Behavioral Health. 22 (b) Shall administer, through the divisions of the Department, 23 the provisions of chapters 63, 424, 425, 427A, 432A to 442, 24 inclusive, 446 to 450, inclusive, 458A and 656A of NRS, NRS 25 127.220 to 127.310, inclusive, 422.001 to 422.410, inclusive, and 26 sections 2 to 9, inclusive, of this act, 422.580, 432.010 to 432.133, 27 inclusive, 432B.6201 to 432B.626, inclusive, 444.002 to 444.430, 28 inclusive, and 445A.010 to 445A.055, inclusive, and all other 29 provisions of law relating to the functions of the divisions of the 30 Department, but is not responsible for the clinical activities of the 31 Division of Public and Behavioral Health or the professional line 32 activities of the other divisions. 33 (c) Shall administer any state program for persons with 34 developmental disabilities established pursuant to the 35 Developmental Disabilities Assistance and Bill of Rights Act of 36 2000, 42 U.S.C. §§ 15001 et seq. 37 (d) Shall, after considering advice from agencies of local 38 governments and nonprofit organizations which provide social 39 services, adopt a master plan for the provision of human services in 40 this State. The Director shall revise the plan biennially and deliver a 41 copy of the plan to the Governor and the Legislature at the 42 beginning of each regular session. The plan must: 43 – 9 – - *SB424* (1) Identify and assess the plans and programs of the 1 Department for the provision of human services, and any 2 duplication of those services by federal, state and local agencies; 3 (2) Set forth priorities for the provision of those services; 4 (3) Provide for communication and the coordination of those 5 services among nonprofit organizations, agencies of local 6 government, the State and the Federal Government; 7 (4) Identify the sources of funding for services provided by 8 the Department and the allocation of that funding; 9 (5) Set forth sufficient information to assist the Department 10 in providing those services and in the planning and budgeting for the 11 future provision of those services; and 12 (6) Contain any other information necessary for the 13 Department to communicate effectively with the Federal 14 Government concerning demographic trends, formulas for the 15 distribution of federal money and any need for the modification of 16 programs administered by the Department. 17 (e) May, by regulation, require nonprofit organizations and state 18 and local governmental agencies to provide information regarding 19 the programs of those organizations and agencies, excluding 20 detailed information relating to their budgets and payrolls, which the 21 Director deems necessary for the performance of the duties imposed 22 upon him or her pursuant to this section. 23 (f) Has such other powers and duties as are provided by law. 24 2. Notwithstanding any other provision of law, the Director, or 25 the Director’s designee, is responsible for appointing and removing 26 subordinate officers and employees of the Department. 27 Sec. 11. NRS 450B.215 is hereby amended to read as follows: 28 450B.215 1. If the health authority receives notification from 29 the Department of Health and Human Services pursuant to NRS 30 439.5895 that the holder of a permit to operate an ambulance, air 31 ambulance or vehicle of a fire-fighting agency is not in compliance 32 with the requirements of subsection 4 of NRS 439.589, the health 33 authority may, after notice and the opportunity for a hearing in 34 accordance with the provisions of this chapter, require corrective 35 action or impose an administrative penalty in an amount established 36 by regulation of the board. 37 2. The health authority shall not suspend or revoke a permit for 38 failure to comply with the requirements of subsection 4 of 39 NRS 439.589. 40 3. If the health authority receives a notification from the 41 Division of Health Care Financing and Policy of the Department 42 of Health and Human Services pursuant to section 8 of this act 43 that the holder of a permit to operate an ambulance or air 44 ambulance, as applicable, has failed to pay an assessment imposed 45 – 10 – - *SB424* pursuant to section 6 of this act or an administrative penalty 1 imposed pursuant to section 8 of this act, the health authority may, 2 after notice and the opportunity for a hearing in accordance with 3 the provisions of this chapter: 4 (a) Require corrective action; 5 (b) Impose an administrative penalty in an amount established 6 by regulation of the board; or 7 (c) Revoke or suspend the permit of the holder. 8 Sec. 12. The provisions of subsections 3 and 4 of section 9 of 9 this act apply to any period described in subsection 2 of section 9 of 10 this act that occurs on or after July 1, 2025, including, without 11 limitation, a period where federal financial participation is not 12 available for the payment of enhanced rates of reimbursement 13 described in paragraph (a) of subsection 3 of section 7 of this act 14 because the Department of Health and Human Services has not yet 15 obtained approval from the United States Secretary of Health and 16 Human Services to pay such enhanced rates of reimbursement. 17 Sec. 13. 1. This section becomes effective upon passage and 18 approval. 19 2. Sections 1 to 12, inclusive, of this act become effective: 20 (a) Upon passage and approval for the purpose of adopting any 21 regulations and performing any other preparatory administrative 22 tasks that are necessary to carry out the provisions of this act; and 23 (b) On July 1, 2025, for all other purposes. 24 H