AL SB77

Creates the Medicaid Emergency Reserve Fund in the State Treasury to prevent the Alabama Medicaid Agency from reducing provider payments or eliminating optional medical benefits during budget shortfalls.

Fund may only be used to cover cost increases, unforeseen expenses, or prevent overdraft if the Medicaid Agency is expected to exhaust its State General Fund appropriation before fiscal year end, with Governor authorization required.

Medicaid Agency Commissioner must notify the Governor and legislative committees within 180 days if the agency will exhaust its appropriation, including details on funding needs and program impacts.

Establishes $88,000,000 initial appropriation to the fund for fiscal year 2024, with unencumbered balances from Medicaid accounts transferred annually by November 15, capped at a $100,000,000 maximum balance.

State Treasurer shall invest fund reserves in eligible Alabama Trust Fund investments with interest earnings credited to the State General Fund, effective upon Governor approval.