MEDICAID TRUST FUND & STATE SUPPORTED FUND

Created a new Medicaid Trust Fund as a nonreverting fund in the state treasury to hold distributions, appropriations, gifts, grants, donations, and investment income.

Created a new State-Supported Medicaid Fund to receive distributions from the Medicaid Trust Fund starting July 1, 2029.

Changed the distribution mechanism: the State-Supported Medicaid Fund will receive 5% of the average year-end market value of the Trust Fund over the preceding three years, with a minimum distribution of $500 million.

Modified reversion rules: excess reverting funds over $110 million will be transferred to the Medicaid Trust Fund until the Trust Fund reaches $2 billion, rather than reverting to the general fund.

Added requirement that the Trust Fund balance must be at least $500 million before any distribution can be made to the State-Supported Medicaid Fund.

Added requirement that the state investment officer report quarterly to the legislative finance committee and state investment council on Trust Fund investments.

Established that distributions from the Trust Fund to the State-Supported Medicaid Fund begin on July 1, 2029, and occur annually thereafter.

Added new definitions for 'Medicaid Trust Fund' and 'State-Supported Medicaid Fund' with specific rules for fund composition, investment, and expenditure.