{"data":{"id":"us-ky/krs-142.316","jurisdiction":"us-ky","citation":"KRS 142.316","heading":"Tax on gross revenues of Medicaid managed care organization services.","body":"(1) A tax shall be imposed on Medicaid managed care organization services at a\nuniform rate of up to five and one -half percent (5.5%) on gross revenues received\nby each provider after July 1, 2005, for the provision of Medicaid managed care\norganization services.\n(2) The Department for Medicaid Services shall promulgate administrative regulations\nto ensure that a portion of the revenues generated from the assessment levied under\nthis section and federal matching funds shall be used for rate increases for Medicaid\nmanaged-care-organization services to recognize cost increases, including current\nwage and benefit levels in the industry.\n(3) No Medicaid managed care organization shall be guaranteed a repayment of its\nassessment in respect to 42 CFR 433.68, provided,  however, in each fiscal year in\nwhich an assessment is implemented, the Department for Medicaid Services shall\nuse the assessment proceeds to maintain actuarially sound rates as defined in the\ncontract for the Medicaid managed care organizations to the ex tent permissible\nunder federal and state law or regulation and without creating a guarantee to hold\nharmless, as those terms are used in 42 CFR 433.68 related to permissible health\ncare-related taxes after the transition period.\n(4) The remaining revenue generated from the assessment levied under this section and\nfederal matching funds shall be used to supplement the medical assistance related\ngeneral fund appropriations of the Department for Medicaid Services.\n(5) On or before July 1, 2005, the Cabinet for  Health and Family Services, Department\nfor Medicaid Services, shall submit an application to the Centers for Medicare and\nMedicaid Services to request any necessary waiver pursuant to 42 C.F.R. secs.\n433.56 and 433.68.\n(6) If an application to the Centers  for Medicare and Medicaid Services for a waiver is\ndenied, the Department for Medicaid Services may resubmit the application with\nappropriate changes to receive an approved waiver.\n(7) The assessment imposed pursuant to this section shall begin on July 1,  2005, but is\nnot due and payable until rates are increased pursuant to this provision.\n(8) The provisions of this section shall be null and void if the waiver or plan\namendment to increase rates is not approved by the Centers for Medicare and\nMedicaid Services.\n(9) If the assessment provided for in this section is disallowed by the Centers for\nMedicare and Medicaid Services, all collections under this section shall cease.","path":["KRS Chapter 142"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29210","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:36Z","sha256":"7b2605053df96d5de39f29cd8c7378b3915197a3f713c0116d889d0abf9ecc4b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-142.315","next":"us-ky/krs-142.317"},"notice":"GroundRules: Original legal text. Not legal advice."}