SB1132 Summary

• Establishes a Medicaid Sustainability Program that assesses a provider fee on health insurers to generate state funds for drawing down federal Medicaid matching dollars.

• Creates a Medicaid Sustainability Program Special Fund to receive fee revenue and federal matching funds, to be used exclusively for Medicaid-covered healthcare services and program administration.

• Imposes a medicaid sustainability fee on health insurers based on member months, with four tiered rate structures ranging up to $12-$15 per Medicaid member month and up to $1.00 per non-Medicaid member month, effective July 1, 2021 or upon federal approval, whichever is later.

• Requires health insurers to pay the fee in twelve equal monthly installments, due no later than the 30th day after each calendar month, with penalties of prime plus 2% for late payment.

• Appropriates $100,000,000 from the special fund for fiscal years 2021-2022 and 2022-2023, with the entire program sunsetting December 31, 2023 and related statutory provisions repealing June 30, 2024.