2023 Indiana Code › Title 16. Health › Article 21. Hospitals › Chapter 10. Hospital Assessment Fee › 16-21-10-13.3. Incremental Fees; Uses; Requirements Before Collection Can Occur; Deposit of Incremental Fees; Limitations on Use of Incremental Fees to Fund the State Share of Expenses

Sec. 13.3. (a) This section is effective beginning February 1, 2015. As used in this section, "plan" refers to the healthy Indiana plan established in IC 12-15-44.5.
(b) Subject to subsections (c) through (e), the incremental fee under this section may be used to fund the state share of the expenses specified in this subsection if, after January 31, 2015, but before the collection of the fee under this section, the following occur:
(1) The committee establishes a fee formula to be used to fund the state share of the following expenses described in this subdivision:
(A) The state share of the capitated payments made to a managed care organization that contracts with the office to provide health coverage under the plan to plan enrollees other than plan enrollees who are eligible for the plan under Section 1931 of the federal Social Security Act.
(B) The state share of capitated payments described in clause (A) for plan enrollees who are eligible for the plan under Section 1931 of the federal Social Security Act that are limited to the difference between:
(i) the capitation rates effective September 1, 2014, developed using Medicaid reimbursement rates; and
(ii) the capitation rates applicable for the plan developed using the plan's Medicare reimbursement rates described in IC 12-15-44.5-5(a)(2).
(C) The state share of the state's contributions to plan enrollee accounts.
(D) The state share of amounts used to pay premiums for a premium assistance plan implemented under IC 12-15-44.2-20.
(E) The state share of the costs of increasing reimbursement rates for physician services provided to individuals enrolled in Medicaid programs other than the plan, but not to exceed the difference between the Medicaid fee schedule for a physician service that was in effect before the implementation of the plan and the amount equal to seventy-five percent (75%) of the previous year federal Medicare reimbursement rate for a physician service. The incremental fee may not be used for the amount that exceeds seventy-five percent (75%) of the federal Medicare reimbursement rate for a physician service.
(F) The state share of the state's administrative costs that, for purposes of this clause, may not exceed one hundred seventy dollars ($170) per person per plan enrollee per year, and adjusted annually by the Consumer Price Index.
(G) The money described in IC 12-15-44.5-6(a) for the phase out period of the plan.
(2) The committee approves a process to be used for reconciling:
(A) the state share of the costs of the plan;
(B) the amounts used to fund the state share of the costs of the plan; and
(C) the amount of fees assessed for funding the state share of the costs of the plan.
For purposes of this subdivision, "costs of the plan" includes the costs of the expenses listed in subdivision (1)(A) through (1)(G).
The fees collected under subdivision (1)(A) through (1)(F) shall be deposited into the incremental hospital fee fund established by section 13.5 of this chapter. Fees described in subdivision (1)(G) shall be deposited into the phase out trust fund described in IC 12-15-44.5-7. The fees used for purposes of funding the state share of expenses listed in subdivision (1)(A) through (1)(F) may not be used to fund expenses incurred on or after the commencement of a phase out period of the plan.
(c) For each state fiscal year for which the fee authorized by this section is used to fund the state share of the expenses described in subsection (b)(1), the amount of fees shall be reduced by:
(1) the amount of funds annually designated by the general assembly to be deposited in the healthy Indiana plan trust fund established by IC 12-15-44.2-17; less
(2) the annual cigarette tax funds annually appropriated by the general assembly for childhood immunization programs under IC 12-15-44.2-17(a)(3).
(d) The incremental fee described in this section may not:
(1) be assessed before July 1, 2016; and
(2) be assessed or collected on or after the beginning of a phase out period of the plan.
(e) This section is not intended to and may not be construed to change or affect any component of the programs established under section 8 of this chapter.
As added by P.L.213-2015, SEC.148. Amended by P.L.30-2016, SEC.40; P.L.201-2023, SEC.147.