MANAGED CARE ORGANIZATION PROVIDER TAX REFORM.

SEC. 6051. MANAGED CARE ORGANIZATION PROVIDER TAX REFORM.(a) In General.—Section 1903(w)(7)(A)(viii) of the Social Security Act (42 U.S.C. 1396b(w)(7)(A)(viii)) is amended to read as follows:“(viii) Services of managed care organizations (including health maintenance organizations, preferred provider organizations, and such other similar organizations as the Secretary may specify by regulation).”.(b) Effective Date.—(1) In general.—Subject to paragraph (2), the amendment made by subsection (a) shall be effective as of the date of the enactment of this Act.(2) Delay in effective date.—(A) In general.—Subject to subparagraph (B), in the case of a State specified in subparagraph (B), the amendment made by subsection (a) shall be effective as of October 1, 2009.(B) Specified states.—For purposes of subparagraph (A), the States specified in this subparagraph are States that have enacted a law providing for a tax on the services 120 STAT. 93 of a Medicaid managed care organization with a contract under section 1903(m) of the Social Security Act as of December 8, 2005. (c) Clarification Regarding Non-Regulation of Transfers.—(1) In general.—Nothing in section 1903(w) of the Social Security Act (42 U.S.C. 1396b(w)) shall be construed by the Secretary of Health and Human Services as prohibiting a State’s use of funds as the non-Federal share of expenditures under title XIX of such Act where such funds are transferred from or certified by a publicly-owned regional medical center located in another State and described in paragraph (2), so long as the Secretary determines that such use of funds is proper and in the interest of the program under title XIX.(2) Center described.—A center described in this paragraph is a publicly-owned regional medical center that—(A) provides level 1 trauma and burn care services;(B) provides level 3 neonatal care services;(C) is obligated to serve all patients, regardless of State of origin;(D) is located within a Standard Metropolitan Statistical Area (SMSA) that includes at least 3 States, including the States described in paragraph (1);(E) serves as a tertiary care provider for patients residing within a 125-mile radius; and(F) meets the criteria for a disproportionate share hospital under section 1923 of such Act in at least one State other than the one in which the center is located.(3) Effective period.—This subsection shall apply through December 31, 2006.