Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB824 Compare Versions

Only one version of the bill is available at this time.
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5353 STATE OF OKLAHOMA
5454
5555 1st Session of the 58th Legislature (2021)
5656
5757 SENATE BILL 824 By: Pederson
5858
5959
6060
6161
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6363 AS INTRODUCED
6464
6565 An Act relating to ambulance service provid ers;
6666 creating the Ambulance Service Provider Access
6767 Payment Program Act; providing short title; defining
6868 terms; providing for certain assessment; exempting
6969 certain ambulance services; providing assessment
7070 methodology; providing for adjusted a ssessments under
7171 certain conditions; voiding program un der certain
7272 conditions; directing promulgation of rules;
7373 providing for administrative penalties; creating
7474 Ambulance Service Provider Access Payment Program
7575 Fund; providing sour ce of monies; providing for
7676 notice of assessment; requiring quarterly payments;
7777 providing exception for first installment; providing
7878 certain penalty; specifying certain appea ls
7979 procedures; providing assessment for new provider;
8080 providing for ambulance service provider access
8181 payments; specifying date and frequency of payments,
8282 calculation methodology, eligibility, prohibiting
8383 offset of certain payments; requiring refund under
8484 certain condition; directing budgeting and
8585 expenditure of monies; stating allow ed expense;
8686 prohibiting certain use of monies; providing certain
8787 exemption; stipulating certain lack of guar antee;
8888 providing for certain appeals; specifying that monies
8989 are supplemental; prohibiting certain adjust ment of
9090 Medicaid reimbursement; requiring Oklahoma Health
9191 Care Authority to cease collection of fees and refund
9292 providers under certain condition; di recting
9393 Authority to seek ce rtain federal approval; requiring
9494 certain actions if approval denied; providing for
9595 codification; and providing an effective date .
9696
9797
9898
9999 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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151151 SECTION 1. NEW LAW A new section of law to be codified
152152 in the Oklahoma Statutes as Section 3242.1 of Title 63, unless there
153153 is created a duplication in numbering, reads as follows:
154154 This act shall be known and may be cited as the “Ambulance
155155 Service Provider Access Payment Program Act ”.
156156 SECTION 2. NEW LAW A new section of law to be codified
157157 in the Oklahoma Statutes as Section 3242.2 of Title 63, unless there
158158 is created a duplication in numbering, reads as follows:
159159 As used in the Ambulance Service Provider Access Payment Program
160160 Act:
161161 1. “Air ambulance” means ambulance services provided by fix ed
162162 or rotor wing ambulance services ;
163163 2. “Alliance” means the Oklahoma Ambulance A lliance or its
164164 successor association ;
165165 3. “Ambulance” means a motor vehicle or watercraft that is
166166 primarily used or designated as available to provide transportation
167167 and basic life support or advanced life support ;
168168 4. “Ambulance service” or “ambulance service provider” means
169169 any private firm or governmen tal agency which is or should be
170170 licensed by the State Department of Health to provide levels of
171171 medical care based on certification rules or standards promulgated
172172 by the State Commissioner of Health;
173173 5. “Department” means the State Department of Health ;
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225225 6. “Emergency” or “emergent” means a serious situa tion or
226226 occurrence that happens unexpectedly and demands immediate action ,
227227 such as a medical condition manifesting itself by acute symptoms of
228228 sufficient severity including severe pain such that the absence of
229229 immediate medical attention could reasonably b e expected, by a
230230 reasonable and prudent layperson, to result in placing the patient’s
231231 health in serious jeopardy, serious impairme nt to bodily function or
232232 serious dysfunction of any bodily organ or part ;
233233 7. “Emergency transfer” means the movement of an ac utely ill or
234234 injured patient from the scene to a health care facility or the
235235 movement of an acutely ill or injured patient from one health care
236236 facility to another hea lthcare facility;
237237 8. “Licensure” means the licensing of emergency ambulance
238238 services pursuant to rules and standards promulgated by the State
239239 Commissioner of Health ;
240240 9. “Net operating revenue ” means the gross revenues earned for
241241 providing emergency and n on-emergency transfers in Oklahoma
242242 excluding amounts refunded to or recouped, offset or o therwise
243243 deducted by a patient or payer for ground medical transportat ion;
244244 10. “Non-emergency transfer” means the movement of any patient
245245 in an ambulance other than a n emergency transfer ;
246246 11. “Upper payment limit” means the lesser of the customary
247247 charges of the ambulance service provider or the prevailing charges
248248 in the locality of the ambulance service provider for comparable
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300300 services under comparable circumstances, calculated according to
301301 methodology in an approved state plan amendment for the state
302302 Medicaid program; and
303303 12. “Upper payment limit gap ” means the difference be tween the
304304 upper payment limit of the ambulance service provider and the
305305 Medicaid payments not financed using the ambulance service provider
306306 assessments made to all ambulance service providers, provided that
307307 the upper payment limit gap is calculated separately for ambulance
308308 services and air ambulance services .
309309 SECTION 3. NEW LAW A new section of law to be codified
310310 in the Oklahoma Statutes as Section 3242.3 of Title 63, unless there
311311 is created a duplication in numbering, reads a s follows:
312312 A. For the purpose of assuring access to quality emergency and
313313 non-emergency transfers f or state Medicaid beneficiaries, the
314314 Oklahoma Health Care Authority shall, after considering input and
315315 recommendations from the Oklahoma Ambulance Alliance , assess
316316 ambulance service providers licensed in Oklah oma, unless exempt
317317 under subsection B of this s ection, an ambulance service provider
318318 access payment program fee.
319319 B. The following ambulance services shall be exempt from the
320320 ambulance service provider access payment fee:
321321 1. An ambulance service that is owned or operated by the state
322322 or a state agency, the federal government, a federally recognized
323323 Indian tribe, or the Indian Health Service;
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375375 2. An ambulance service that is eligible for supplement al
376376 Medicaid reimbursement under Section 3242 of Title 63 of the
377377 Oklahoma Statutes;
378378 3. An ambulance service that provides air ambulance services
379379 only; or
380380 3. An ambulance service that provides non -emergency transfers
381381 only or a de minimis amount of emergency medical transportation
382382 services, as determined by the Authority .
383383 C. 1. The ambulance service provider access payment program
384384 fee shall be an assessment imposed on e ach ambulance service
385385 provider, except those exempted under subsection B of this section,
386386 for each calendar year in an amount calculated as a percentage of
387387 each ambulance service provider ’s net operating revenue.
388388 2. The assessment rate shall be determined annually based upon
389389 the percentage of net operating revenue needed to generate an amount
390390 up to the sum of:
391391 a. the nonfederal portion of the upper payment limit gap
392392 for all ambulance service prov iders eligible to
393393 receive Medicaid ambulance service provide r access
394394 payments, plus
395395 b. the annual fee to be paid to the Authority under
396396 subparagraph b of paragraph 2 of subsection F o f
397397 Section 4 of this act , plus
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449449 c. the amount to be transferred by the Auth ority to the
450450 Medical Payments Cash Management Improvement Act
451451 Programs Disbursing Fund under subparagraph a of
452452 paragraph 2 of subsection F o f Section 4 of this act .
453453 In no event shall the assessment rate exceed the maximum rate
454454 allowed by federal law or reg ulation.
455455 3. The assessment rate described in this subsection shall be
456456 determined after consultation with the Alliance. The base year for
457457 assessment, the method for calculating net operating revenue and
458458 related matters not provided for in this section shall be determined
459459 by rules promulgated by the Oklahoma Health Care Authority Board.
460460 D. 1. If an ambulance service provider conducts, operates or
461461 maintains more than one licensed ambulance service, the ambul ance
462462 service provider shall pay the ambulance ser vice provider access
463463 payment program fee for each ambulance service separately. However,
464464 if the ambulance service provider operates more than one ambulance
465465 service under one Medicaid provider number, the ambulance service
466466 provider may pay the fee for the ambulance services in the
467467 aggregate.
468468 2. Notwithstanding any other provision of this section, if an
469469 ambulance service provider subject to the ambulance service provider
470470 access payment fee operates or conducts business only for a portion
471471 of a year, the assessment for the year shall be adjusted by
472472 multiplying the annual assessment by a fraction, the numerator of
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524524 which is the number of days in the year during which the ambulance
525525 service operates and the denominator of which is three hundred
526526 sixty-five (365). Immediately upon ceasing to operate, the
527527 ambulance service provider shall pay the assessment for the year as
528528 so adjusted, to the extent not previously paid .
529529 3. The Authority shall determine the assessment for new
530530 ambulance services and ambulance service s that undergo a change of
531531 ownership in accordance with this sec tion, using the best availa ble
532532 information, as determined by the Authority.
533533 E. 1. In the event that federal financial participation
534534 pursuant to Title XIX of the Social Security Act is not available to
535535 the state Medicaid Program for purposes of matching e xpenditures
536536 from the Ambulance Service Provider Access Payment Program Fund at
537537 the approved federal medical assistance percentage for the
538538 applicable year, the ambulance service provider access payment
539539 program fee shall be null and void as of the date of the
540540 nonavailability of su ch federal funding through and during any
541541 period of nonavailability.
542542 2. In the event of an invalidation of the Ambulance Service
543543 Provider Access Payment Program by any co urt of last resort, the
544544 program shall be null and void as of the effective date of t hat
545545 invalidation.
546546 3. In the event that the Ambulance Service Provider Access
547547 Payment Program is determined to be null and void for any of the
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599599 reasons described in this subsection, any ambulance service provide r
600600 access payment program fee assessed and collected for any period to
601601 which such invalidation applies shall be returned in full within
602602 twenty (20) days by the Authority to the ambulance service from
603603 which it was collected.
604604 F. The Oklahoma Health Care Authority Board, after considering
605605 the input and recomm endations of the Alliance, shall promulgate
606606 rules for the implementation and enforcement of the ambulance
607607 service provider access payment program fee. Unless otherwise
608608 provided, the rules promulgated under this subsection shall not
609609 grant any exceptions to or exemptions from the ambulance service
610610 provider access payment program fee imposed under th is section.
611611 G. The Authority shall provide for administrative penalties in
612612 the event an ambulance service prov ider fails to:
613613 1. Submit the ambulance service pro vider access payment program
614614 fee;
615615 2. Submit the fee in a timely manner;
616616 3. Submit reports as required by the Autho rity;
617617 4. Submit reports timely.
618618 J. The Oklahoma Health Care Authority Board shall have the
619619 power to promulgate emergency rules to implement the provisions of
620620 Ambulance Service Provider Access Payment Program Act .
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671671
672672 SECTION 4. NEW LAW A new s ection of law to be codified
673673 in the Oklahoma Statutes as Section 3242.4 of Title 63, unless there
674674 is created a duplication in numbe ring, reads as follows:
675675 A. There is hereby created in the State Treasury a revolving
676676 fund to be designated the “Ambulance Service Provider Access Payment
677677 Program Fund”.
678678 B. The fund shall be a continuing fund, not subject to fiscal
679679 year limitations, be in terest bearing and consist of:
680680 1. All monies received by the Oklahoma Health Care Authority
681681 from ambulance services pursuant to the Ambulance Service Provider
682682 Access Payment Program Act and otherwise spec ified or authorized by
683683 law;
684684 2. Any interest or penalties levied and collected in
685685 conjunction with the a dministration of this section; and
686686 3. All interest attributable to investment of money in the
687687 fund.
688688 C. 1. The Authority shall send a notice of assessment to each
689689 ambulance service provider informing t he ambulance service provide r
690690 of the assessment rate, the ambulance service provider ’s net
691691 operating revenue calculation, and the assessment amount owed by the
692692 ambulance service provider for the applicable year.
693693 2. Annual notices of assessment shall be se nt at least thirty
694694 (30) days before the due date for the first quarterly assessment
695695 payment of each year.
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747747 3. The first notice of assessment shall be sent within forty -
748748 five (45) days after receipt by the Authority of notification from
749749 the Centers for Medic are and Medicaid Services that assessments and
750750 payments required under the Ambulance Service Provider Access
751751 Payment Program Act and, if necessary, the wavier granted under 42
752752 C.F.R., Section 433.68 have been approved.
753753 4. The ambulance service provider sh all have thirty (30) days
754754 from the date of its receipt of a notice of assessment to review and
755755 verify the assessment rate, the ambulance service provider ’s net
756756 operating revenue calculation and the assessment amount.
757757 D. 1. The annual assessment imposed u nder Section 3 of this
758758 act shall be due and payable on a quarterly basis. However, the
759759 first installment payment of an assessment imposed by the Ambulance
760760 Service Provider Access Payment Act shall not be due and payable
761761 until:
762762 a. the Authority issues written notice stating that the
763763 assessment and payment methodologies required under
764764 the Ambulance Service Provider Access Payment Act ,
765765 have been approved by Centers for Medicare and
766766 Medicaid Services and the waiver under 42 C.F.R.,
767767 Section 433.68, if necessary , has been granted by the
768768 Centers for Medicare and Medicaid Services ,
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820820 b. the thirty-day verification period required by
821821 paragraph 4 of subsection C of this section has
822822 expired, and
823823 c. the Authority issues a notice giving a due date for
824824 the first payment.
825825 2. After the initial installment of an annual assessment has
826826 been paid under this section, each subsequent quarterly installment
827827 payment shall be due and payable by the fifteenth day of the first
828828 month of the applicable quarter.
829829 3. If an ambulance service provider fails to timely pay the
830830 full amount of a quarterly assessment, the Authority shall add to
831831 the assessment:
832832 a. a penalty assessment equal to five percent (5%) o f the
833833 quarterly amount not paid on or before the due date,
834834 and
835835 b. on the last day of e ach quarter after the due date
836836 until the assessed amount and the penalty imposed
837837 under subparagraph a of this paragraph are paid in
838838 full, an additional five -percent penalty assessment on
839839 any unpaid quarterly and unpaid penalty assessment
840840 amounts.
841841 4. The quarterly assessment including applicable penalties and
842842 interest must be paid regardless of any appeals action requested by
843843 the ambulance provider. If a provider fails to pay the Authority
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895895 the assessment within the time frames noted on the invoice to the
896896 provider, the assessment, applicable penalty and interest shall be
897897 deducted from the provider ’s payment. Any change in payment amount
898898 resulting from an appeals decision w ill be adjusted in future
899899 payments.
900900 5. An ambulance service provider subject to the ass essment
901901 under the Ambulance Service Provider Access Payment Program Act that
902902 has not been previously licensed as an ambulance service in Oklahoma
903903 and that commences ope rations during a year, shall pay the required
904904 assessment computed under Section 3 of this act and shall be
905905 eligible for ambulance service provider access payments under this
906906 section on the date specified in the rules promulgated by the
907907 Authority after consi deration of input and recommendations of the
908908 Oklahoma Ambulance Alliance .
909909 E. 1. To preserve the quality and improve access to ambulance
910910 services rendered on or after the effective date of this act, the
911911 Authority shall make ambulance service provider acce ss payments as
912912 set forth in this sec tion.
913913 2. The Authority shall pay all quarterly ambulance service
914914 provider access payments within ten (10) calendar days of the due
915915 date for quarterly assessment payments established in subsection D
916916 of this section.
917917 3. The Authority shall calculate the am bulance service provider
918918 access payment amount as the balance of the Ambulance Service
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970970 Provider Access Payment Program Fund plus any federal matching funds
971971 earned on the balance, up to but not to exceed the upper payment
972972 limit gap for all ambulance service providers.
973973 4. All ambulance servic e providers shall be eligible for
974974 ambulance service provider access payments each year as set forth in
975975 this subsection except ambulance services excluded or exempted in
976976 subsection B of Section 3 of this act.
977977 5. Access payments shall be made on a quarter ly basis.
978978 6. Ambulance service provider access payments shall not be used
979979 to offset any other payment by Medicaid for services to Medicaid
980980 beneficiaries.
981981 7. If the Centers for Medicare and Medicaid Services finds that
982982 the Authority has made payments to ambulance service providers that
983983 exceed the upper payment limits, ambulance service providers shall
984984 refund to the Authority a share of the recouped federal funds that
985985 is proportionate to the ambulance services’ contribution to the
986986 upper payment limit.
987987 F. 1. All monies accruing to the credit of the Amb ulance
988988 Service Provider Access Payment Program Fund are hereby appropriated
989989 and shall be budgeted and expended by the Authority after
990990 consideration of the input and recommenda tion of the Alliance.
991991 2. Monies in the Ambulance Service Provider Access Payment
992992 Program Fund shall be used only for:
993993
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10441044 a. transfers to the Medical Payments Cash Management
10451045 Improvement Act Programs Disbursing Fund for the state
10461046 share of ambulance service pr ovider access payments
10471047 for ambulance service providers that participate in
10481048 the assessment,
10491049 b. transfers to the Administrative Re volving Fund for the
10501050 state share of payment of administrative expenses
10511051 incurred by the Auth ority or its agents and employees
10521052 in performing the activities authorized by the
10531053 Ambulance Service Provider Access Payment Program Act
10541054 but not more than Two Hundred Thousand Dollars
10551055 ($200,000.00) each year, and
10561056 c. the reimbursement of monies collected by t he Authority
10571057 from ambulance services through error or mistake in
10581058 performing the activiti es authorized under the
10591059 Ambulance Service Provider Access Payment Pro gram Act.
10601060 3. The Authority shall pay from the Ambulance Service Provider
10611061 Access Payment Program Fu nd quarterly installment payments to
10621062 ambulance service providers of amounts available fo r ambulance
10631063 service provider access payments.
10641064 4. Monies in the Ambulance Service Provider Access Payment
10651065 Program Fund shall not be used to replace other general revenu es
10661066 appropriated and funded by the Legislature or other revenues used to
10671067 support Medicaid.
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11191119 5. The Ambulance Service Provider Access Payment Program Fun d
11201120 and the program specified in the Ambulance Service Provider Access
11211121 Payment Program Act are exempt from budgetary reductions or
11221122 eliminations caused by the lack of general revenue funds or othe r
11231123 funds designated for or appropriated to the Authority.
11241124 6. No ambulance service provider shall be guaranteed, expressly
11251125 or otherwise, that any additional costs reimbu rsed to the provider
11261126 will equal or exceed the amount of the ambulance service provider
11271127 access payment program fee paid by the ambulance service.
11281128 H. After considering input and recommendations from the
11291129 Alliance, the Oklahoma Health Care Authority Board shall promulgate
11301130 rules that:
11311131 1. Allow for an appeal of the annual assessment of the
11321132 Ambulance Service Provider Access Payment Program payable under this
11331133 act; and
11341134 2. Allow for an appeal of an assessment of any fees or
11351135 penalties determined.
11361136 SECTION 5. NEW LAW A new section of law to be codified
11371137 in the Oklahoma Statutes as Section 3242.5 of Title 63, unless there
11381138 is created a duplication in numbering, reads as follows:
11391139 A. The ambulance service provider access payment program fee is
11401140 to supplement, not supplant, appropriatio ns to support ambulance
11411141 service provider reimbursem ent. If Medicaid reimbursement rates to
11421142 providers are adjusted, ambulance service provider rates shall not
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11941194 be adjusted less favorably than the average percentage -rate
11951195 reduction or increase applicable to t he majority of other provider
11961196 groups.
11971197 B. Notwithstanding any other provision of the Ambulance Service
11981198 Provider Access Payment Program Act, if, after receipt of
11991199 authorization to receive federal matching funds for monies generated
12001200 by the Ambulance Service P rovider Access Payment Program Act, the
12011201 authorization is withdrawn or changed so that federal matching funds
12021202 are no longer available, the Oklahoma Health Care Authority shall
12031203 cease collecting the provider fee and shall r epay to the ambulance
12041204 services any money received by the Ambulance Service Provider Acc ess
12051205 Payment Program that is not subject to federal matching funds.
12061206 SECTION 6. NEW LAW A new s ection of law to be codified
12071207 in the Oklahoma Statute s as Section 3242.6 of Title 63, unless there
12081208 is created a duplication in numbering, re ads as follows:
12091209 A. The Oklahoma Health Care Authority shall submit to the
12101210 Oklahoma Ambulance Alliance a proposed state plan amendment to
12111211 implement the requirements of t he Ambulance Service Provider Access
12121212 Payment Program Act including the payment of ambul ance service
12131213 provider access payments under Section 4 of this act, no later than
12141214 forty-five (45) days after the effective date of this act, and shall
12151215 submit the state plan amendment to the Centers for Medi care and
12161216 Medicaid Services after consideration of t he input and
12171217 recommendations of the Alliance.
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12691269 B. If the state plan amendment is not approved by the Centers
12701270 for Medicare and Medicaid Services , the Authority shall:
12711271 1. Not implement the assessment imposed under the Ambulance
12721272 Service Provider Access Payme nt Program Act; and
12731273 2. Return any fees to ambulance services that paid the fees if
12741274 any such fees have been collected.
12751275 SECTION 7. This act shall become effective November 1, 2021.
12761276
12771277 58-1-1385 DC 1/21/2021 3:38:25 PM