Permissible uses of hospital assessment fees

Sec. 14. (a) This section does not apply to the use of the incremental fee described in section 13.3 of this chapter. (b) The fees collected under section 8 of this chapter may be used only as described in this chapter or to pay the state's share of the cost for Medicaid services provided under the federal Medicaid program (42 U.S.C. 1396 et seq.) as follows: (1) Twenty-eight and five-tenths percent (28.5%) may be used by the office for Medicaid expenses. (2) Seventy-one and five-tenths percent (71.5%) to hospitals. (c) Subject to budget committee review, for any state fiscal year for which the managed care assessment fee under IC 27-1-50.3 is assessed in an amount that is at least equal to the net amount set forth in subsection (b)(1), the fee may be used to fund a state directed payment, as described in section 8.5 of this chapter.