65-6214. Same; payment date for health maintenance organizations; delayed payment schedules; penalties.
65-6214
65-6214. Same; payment date for health maintenanceorganizations; delayed payment schedules; penalties.(a) The assessment imposed byK.S.A. 2009 Supp.65-6213, andamendments thereto,for any state fiscalyear to which this statute applies shall be due and payable in equalinstallments onor beforeJune 30 and December 31, commencing with whichever date first occurs after thehealth maintenance organization has received payments for 150 days after theeffective date of the payment methodology approved by the centers for medicareand medicaid services.Noinstallment payment of an assessment under this act shall be due and payable,however, untilafter:
(1) The health maintenance organization receives writtennotice from the department thatthe paymentmethodologies to health maintenance organizations required under this act havebeen approved by thecenters formedicare and medicaid services of the United States department of health andhuman services and thestate plan amendment for the assessment imposed byK.S.A. 2009 Supp.65-6213,andamendments thereto, has been granted by the centers for medicare and medicaidservices of theUnited States department of health and human services; and
(2) the health maintenanceorganization has receivedpayments for 150 days after the effective date ofthe paymentmethodologyapproved by the centers for medicare and medicaid services.
(b) Thedepartment is authorized to establish delayed payment schedules forhealth maintenance organizations that areunable to make installment payments when due under this section due tofinancial difficulties, asdetermined by the department.
(c) If a health maintenance organization fails to paythe full amount of an installmentwhen due,including any extensions of time for delayed payment granted under thissection, there shall be added tothe assessmentimposed byK.S.A. 2009 Supp.65-6213, and amendments thereto, unless waived bythedepartmentfor reasonablecause, a penalty assessment equal to the lesser of:
(1) An amount equal to 5% of the installment amount not paid on or before thedue date plus 5% of the portion thereof remaining unpaid on the last day ofeach month thereafter; or
(2) an amount equal to 100% of the installment amount not paid on or beforethe duedate.
For purposes of this subsection (c), payments shall be credited first to unpaidinstallmentamounts, rather than to penalty or interest amounts, beginning with the mostdelinquentinstallment.
(d) The effective date for the payment methodology applicable to healthmaintenanceorganizations approved by the centers for medicare and medicaid services shallbe the date ofJuly 1 or January 1, whichever date is designated in the state plan submittedby the department of social and rehabilitation services forapproval by the centers formedicare and medicaid services.
History: L. 2004, ch. 89, § 8; L. 2004, ch. 141, § 2;July 1.