The bill establishes the "Medicaid Trust Fund" as a nonreverting fund within the state treasury, which will consist of various sources such as distributions, appropriations, gifts, grants, and donations. The fund's income will be generated from investments, and it will be managed by the state investment officer in consultation with the health care authority. A key provision includes a scheduled distribution to the "state-supported Medicaid fund" starting July 1, 2029, contingent upon the trust fund maintaining a minimum balance of $500 million. Additionally, the bill allows for appropriations from the trust fund under specific circumstances, such as significant decreases in federal matching funds or to prevent deficits in the general fund.

Furthermore, the bill creates the "state-supported Medicaid fund," which will also consist of various financial sources and will be administered by the health care authority. Any unspent balances at the end of a fiscal year will revert to the Medicaid Trust Fund. The bill also amends existing law regarding state agency reversions, stipulating that any unreserved fund balances exceeding $110 million will be transferred to the Medicaid Trust Fund until it reaches a cap of $2 billion. The provisions of this act are set to take effect on July 1, 2025.

Statutes affected:
introduced version: 6-5-10, 6-10-2.1
Final Version: 6-5-10