SB 231
Modifies tax refund and lottery setoff procedure for unpaid healthcare expenses
Sponsor:
LR Number:
1236S.01I
Committee:
Last Action:
5/17/2013 - S Informal Calendar S Bills for Perfection--SB 231-Munzlinger, with SA 1 (pending)
Journal Page:
Title:
Calendar Position:
Effective Date:
August 28, 2013

Current Bill Summary

SB 231 - Under current law, the Department of Health and Senior Services processes claims submitted by health care providers requesting setoffs of income tax refunds to satisfy outstanding debts owed by taxpayers. This act repeals the authority of the Department of Health and Senior Services to administer such a program. A system for ambulance service providers to utilize a private claim clearinghouse is created. The clearinghouses will process and verify requests for setoffs of taxpayer income tax refunds and lottery winnings. The setoffs will be used to satisfy outstanding debts for ambulance services received.

Prior to utilizing the clearinghouse, an ambulance service provider must provide certain notices to patients and allow for various levels of review and appeals of such claims. To offset expenses incurred in collecting debts owed to ambulance service providers, a collection fee is assessed to each offset which is allocated among the clearinghouse and the Department of Revenue.

The act establishes a priority for setoffs. Delinquent state taxes have top priority, followed by support obligations, collection fees under this act, claims under this act, and delinquent federal taxes.

This act is identical to HB 234 (2013), HCS/SB 24 (2013), HCS/SS/SCS/SB 83 (2013), HCS/HB 1210 (2012), and similar to HB 312 (2011) and SCS/SB 878 (2010).

MIKE HAMMANN

Amendments