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FISCAL NOTE
House Bill 126
Committee: Ways and Means General FundSponsor: Representative Kyle South
Analyst: Tiffany Weaver Date: 04/19/2023
House Bill 126 as reported by the Committee on Ways and Means General Fund 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 would appropriate: (1) $88 million from the Medicaid State General Fund
Carryforward Account 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.