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 the state investment officer is tasked with managing these investments 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.

The "state-supported Medicaid fund" is also created to support the state Medicaid program, with its administration assigned to the health care authority. This fund will similarly consist of various financial sources and will be subject to legislative appropriation. Unexpended balances at the end of the fiscal year will revert to the Medicaid Trust Fund. Furthermore, the bill amends existing law to facilitate the transfer of excess reversion balances from the general fund 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