SB 1132 Summary

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

• Creates a special fund to receive revenue from the Medicaid sustainability fee and associated federal matching funds, administered by the Department of Human Services and used exclusively for Medicaid services and program administration.

• Imposes tiered fees on health insurers based on member months, with rates up to $12 per Medicaid member month (tier one) and up to $15 per Medicaid member month (tier two), plus up to $1.00 per non-Medicaid member month; fees paid monthly by the 30th day after each calendar month.

• Appropriates $100,000,000 from the special fund for each of fiscal years 2021-2022 and 2022-2023 for Medicaid sustainability purposes.

• Sunsets December 31, 2023, with related statutory provisions repealing June 30, 2024; program requires federal approval from Centers for Medicare and Medicaid Services before implementation.