KRS 205.5357: Medicaid managed care organization compliance fund.

(1) (a) There is hereby established in the State Treasury a restricted fund to be known

as the Medicaid managed care organization compliance fund.

(b) The fund shall consist of all penalties or fines imposed by the cabinet on a

managed care organization for violations of KRS 205.5356, any other contract

violation, or any violation of state or federal law related to the Medicaid

program, regardless of the manner in which the penalty or fine is paid by a

managed care organization, including but not limited to reducti ons in future

capitation payments or any monies withheld by the Department for Medicaid

Services for payment of penalties or fines.

(c) The fund shall be administered by the cabinet.

(d) Notwithstanding KRS 45.229, fund amounts not appropriated at the clos e of a

fiscal year shall not lapse but shall be carried forward into the next fiscal year.

(e) Any interest earnings of the fund shall become a part of the fund and shall not

lapse.

(f) Notwithstanding KRS 48.630, expenditures shall not be made from this f und

unless expressly appropriated by the General Assembly.

(g) It is the intent of the General Assembly that monies in the fund shall provide

financial support for future Medicaid reimbursement rate increases upon

appropriation by the General Assembly.

(2) The cabinet shall submit specific recommendations for the use of monies in the

Medicaid managed care organization compliance fund to increase certain Medicaid

reimbursement rates to the Legislative Research Commission for referral to the

Interim Joint Committees on Appropriations and Revenue and Health Services and

the Medicaid Oversight and Advisory Board established in KRS 7A.273 by

November 1, 2027, and November 1 of each following odd-numbered year.