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FISCAL NOTE
House Bill 126
Committee: Ways and Means General FundSponsor: Representative Kyle South
Analyst: Tiffany Weaver Date: 04/17/2023
House Bill 126 as introduced would: (1) create the Medicaid Emergency Reserve Fund; (2)
annually transfer to the Fund any unencumbered ending balance of the Medicaid State General
Fund Account and the Medicaid State General Fund Carryforward Account that was not
appropriated in a future budget, beginning with the 2024 fiscal year ending balance; (3) require
the Legislature to appropriate the expected carryforward in the Fund back to the Fund for use in
the next fiscal year, as well as the expected transfers from the Medicaid State General Fund
Account and the Medicaid State General Fund Carryforward Account; (4) prohibit the balance
in the Fund from exceeding $100 million.
This bill would also authorize withdrawals from the Fund only when authorized by the
Governor and when the Alabama Medicaid Agency's commissioner notifies the governor of the
following: (1) over expenditure variances due to cost increases or unforeseen costs; and (2) to
prevent overdraft or deficit if the Alabama Medicaid Agency is expected to expend its total
State General Fund appropriation before the end of the fiscal year.
Further, this bill appropriates: (1) $88 million to the Fund for fiscal year 2024; and (2) $88
million from the Fund in fiscal year 2024 to the Alabama Medicaid Agency to be used in
conformity of this bill.