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Proposed Ordinance Regarding Hernando County Local Provider Participation Fund Ordinance; Amending Chapter 15, Article II
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BRIEF OVERVIEW
The proposed ordinance, if enacted, will amend Hernando County Code Chapter 15, Article II, "Hernando County Local Provider Participation Fund," to conform it to recent changes in federal law.
Scope
On August 24, 2021, the Board enacted Ordinance 2021-16, codified at Hernando County Code Ch. 15, Art. II (the "LPPF Ordinance"), which authorizes, but does not require, the Board to impose, levy, collect, and enforce a special assessment against private for-profit or not-for-profit hospitals that provide inpatient hospital services within the County. While the special assessment that the ordinance authorizes is technically "countywide," the assessments are only levied against hospitals and their respective properties.
Like the LPPF Ordinance, this amendment has been requested by the owners and operators of Hernando County's hospitals.
Background
Medicaid is a joint federal-state health insurance program that provides medical coverage to a low-income population consisting of children, pregnant women, people over 65, and individuals with disabilities. See 42 U.S.C. ? 1396, et seq. Although the program is administered by the states, Medicaid is jointly funded by states and the federal government through federal matching of state funds. See 42 U.S.C. ? 1396b. State general revenue comprises a large share of the funds receiving a federal match.
Other forms of revenue collection, however, also qualify for matching. For example, local governments can collect funds and use intergovernmental transfers (IGTs) to send those funds to the state for federal matching. See Social Security Act ? 1902(a)(2); 42 CFR ? 433.51. IGTs have the advantage of increasing the magnitude of federal spending without a commensurate increase in state general revenue spending. So long as the collection of funds and these IGTs comply wi...
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