We’ve received several questions from our clients regarding notices recently issued by the Agency for Health Care Administration (AHCA) concerning the reinstatement of Lease Bond Trust Fund (Fund) payments. The purpose of the Fund is to reimburse the State of Florida in the event providers did not provide paybacks owed to the State. For several years, the Fund balance has exceeded the statutory maximum, allowing the State to suspend further payments into the Fund.
However, recent events over the past year have depleted the Fund below the $25 million limit as of March 31, 2018, which prompted AHCA to reimpose this fee based on requirements in Florida Statutes, Section 400.179(2)(d). The notice states that the lease bond requirements have been reinstated for applications for initial licensure and any subsequent changes of ownership received after June 30, 2018. The payments will continue to be collected annually until the Fund is replenished. The next review will be completed by March 31, 2019, and if the balance of the Fund exceeds $25 million, the lease bond requirement will be suspended for applications received after June 30, 2019.
The amount of payment due is equal to 1% of the total bond amount required which is three (3) months’ worth of Medicaid payments to the facility based on the preceding 12 -month average. The notices issued by AHCA do not state a payment due date; however, we anticipate AHCA will reissue the notices with a due date included. Furthermore, AHCA may publish a list of all providers and their respective fees and due dates. Failure to acquire, maintain, renew annually, or provide proof to the agency shall be grounds for the agency to deny, revoke, and suspend the facility license to operate such facility and to take any further action as deemed appropriate.
The current shortfall in the Fund balance is estimated at a little more than $5 million. Assuming there are no further incidents of unpaid liabilities to the State, full payback of the shortfall is expected to take approximately 1-2 years.
For more information, contact your Moore Stephens Lovelace representative who will be happy to assist your organization. Call (800) 683-5401 or use the email addresses below.