Relating to a dental provider assessment including monetary penalties, contingencies, and effective date provisions

This bill creates a dental provider assessment program and imposes a provider assessment on dental providers transacting business in the state. The bill provides definitions for the purposes of the bill including “dental provider”, “gross revenue”, “nonoperating revenue”, “other operating revenue”, and “transacting business in the state”. The bill imposes a dental provider assessment on each dental provider transacting business in the state to be used to promote access to health care services for Iowans, including those served by the Medicaid program. The assessment rate shall be calculated as one and one-half percent of the dental provider’s gross revenue. The assessment shall be paid by each dental provider to the department of health and human services (HHS or the department) on a quarterly basis, and not later than days following the end of each calendar quarter. The department shall collect the assessment imposed and shall credit all revenues collected to the state Medicaid appropriation. The revenue shall be used only for services for which federal financial participation under the Medicaid program is available to match state funds. The bill includes provisions relating to underpayments and overpayments of the assessment. If a dental provider fails to pay the assessment within the time frame specified in the bill, in addition to the outstanding assessment, a penalty in the amount of one and five-tenths percent of the assessment amount is owed for each month or portion of each month the payment is overdue. The department may waive the penalty or a portion of the penalty for good cause shown. The department shall suspend payment due the dental provider under the Medicaid program if an assessment has not been received by HHS by the last day of the third month after the payment is due. The assessment constitutes a debt due and owing the state and may be collected by civil action, including but not limited to the filing of tax liens, and any other method provided for by law. If certain circumstances occur, including if federal financial participation to match the assessments becomes unavailable under federal law or if the assessment is determined to be invalid, HHS shall terminate the program and the imposition of the assessment beginning on the date the federal statutory, regulatory, or interpretive change takes effect. The department may adopt administrative rules to administer the bill. The bill includes directives to HHS and contingency provisions. The department is directed, upon enactment of the bill, to request any federal waivers or Medicaid state plan amendments necessary to implement the bill. The dental provider assessment shall not be imposed or collected until HHS receives necessary federal approval, and not prior to July 1, 2024. The department shall notify the Code editor upon receipt of the federal approval. The bill takes effect upon enactment but shall only be implemented if HHS receives the federal approval specified in the bill.