(a)    The Commission shall assess the underlying causes of hospital uncompensated care and make recommendations to the General Assembly on the most appropriate alternatives to:

(1)    Reduce uncompensated care; and

(2)    Assure the integrity of the payment system.

(b)    The Commission may adopt regulations establishing alternative methods for financing the reasonable total costs of hospital uncompensated care and the disproportionate share hospital payment provided that the alternative methods:

(1)    Are in the public interest;

(2)    Will equitably distribute the reasonable costs of uncompensated care and the disproportionate share hospital payment;

(3)    Will fairly determine the cost of reasonable uncompensated care and the disproportionate share hospital payment included in hospital rates;

(4)    Will continue incentives for hospitals to adopt fair, efficient, and effective credit and collection policies; and

(5)    Will not result in significantly increasing costs to Medicare or termination of Maryland’s all–payer model contract approved by the federal Center for Medicare and Medicaid Innovation.

(c)    Any funds generated through hospital rates under an alternative method adopted by the Commission in accordance with subsection (b) of this section may only be used to finance the delivery of hospital uncompensated care and the disproportionate share hospital payment.

(d)    (1)    Each year, the Commission shall assess a uniform, broad–based, and reasonable amount in hospital rates to reflect the aggregate reduction in hospital uncompensated care realized from the expansion of health care coverage under Chapter 7 of the Acts of the 2007 Special Session of the General Assembly.

(2)    (i)    1.    The Commission shall ensure that the assessment amount equals 1.25% of projected regulated net patient revenue.

2.    Each hospital shall remit its assessment amount to the Health Care Coverage Fund established under § 15–701 of this article.

(ii)    Any savings realized in averted uncompensated care as a result of the expansion of health care coverage under Chapter 7 of the Acts of the 2007 Special Session of the General Assembly that are not subject to the assessment under paragraph (1) of this subsection shall be shared among purchasers of hospital services in a manner that the Commission determines is most equitable.

(3)    (i)    Funds generated from the assessment under this subsection may be used only to supplement coverage under the Medical Assistance Program beyond the eligibility requirements in existence on January 1, 2008.

(ii)    Any funds remaining after the expenditure of funds under subparagraph (i) of this paragraph has been made may be used for the general operations of the Medicaid program.