Senate File 2091 - Introduced SENATE FILE 2091 BY HOGG A BILL FOR An Act relating to disclosure of ownership and control 1 information for nonprofit corporations under the Medicaid 2 program. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5608XS (3) 86 pf/nh

S.F. 2091 Section 1. DISCLOSURE OF OWNERSHIP AND CONTROL INFORMATION 1 UNDER MEDICAID PROGRAM —— NONPROFIT CORPORATIONS. The 2 department of human services shall contract with a third-party 3 certified public accounting organization to collect and verify 4 information submitted by a disclosing entity to comply with the 5 requirements for disclosure of information on ownership and 6 control pursuant to 42 C.F.R. §455.104, if any person with an 7 ownership or control interest in the disclosing entity is an 8 officer or director of a nonprofit corporation. The certified 9 public accounting organization shall notify the department 10 upon verification of the information. A Medicaid managed care 11 organization contracting with the state shall not require 12 disclosure of such ownership and control information from 13 nonprofit corporations if the entity is approved and enrolled 14 by the department as a provider under the Medicaid program. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill requires the department of human services to 19 contract with a third-party certified public accounting 20 organization to collect and verify information submitted to 21 comply with the requirements for disclosure of information on 22 ownership and control pursuant to 42 C.F.R. §455.104, if any 23 person with an ownership or control interest in the disclosing 24 entity is an officer or director of a nonprofit corporation. 25 The certified public accounting organization shall notify the 26 department upon verification of the information. The bill also 27 provides that a Medicaid managed care organization contracting 28 with the state shall not require disclosure of the ownership 29 and control information from nonprofit corporations if the 30 entity is approved and enrolled by the department as a provider 31 under the Medicaid program. 32 Under the federal Patient Protection and Affordable Care 33 Act, state Medicaid agencies are required to collect ownership 34 and control information and conduct enhanced screenings of all 35 -1- LSB 5608XS (3) 86 pf/nh 1/ 2

S.F. 2091 Medicaid providers. Under 42 U.S.C. §1320a-3, a disclosing 1 entity is required to report certain information regarding each 2 person with an ownership or control interest in the entity. 3 A person with an ownership or control interest includes an 4 officer or director of the entity, if the entity is organized 5 as a corporation, whether the corporation is a for-profit or 6 not-for-profit corporation. 7 -2- LSB 5608XS (3) 86 pf/nh 2/ 2