KRS 205.553: Kentucky Medicaid pharmaceutical rebate fund.

(1) There is hereby established within the Cabinet for Health and Family Services a

restricted fund to be known as the Kentucky Medicaid pharmaceutical rebate fund.

All moneys received by the Cabinet for Health and Family Services or the

Department for Medicai d Services as compensation or rebate, including

supplemental rebates, from a pharmaceutical drug manufacturer, the state pharmacy

benefit manager contracted by the department pursuant to KRS 205.5512, or any

other third -party entity contracted to administe r or assist in administering any

aspect of the Medicaid program, minus any remittance that may be owed to the

federal government, shall be deposited into the fund.

(2) Moneys deposited into the fund shall be expended by the Department for Medicaid

Services in accordance with federal law.

(3) Notwithstanding KRS 45.229, moneys in the Kentucky Medicaid pharmaceutical

rebate fund at the close of state fiscal year 2024 -2025 and state fiscal year 2025 -

2026 shall not lapse but shall be carried forward into the next fiscal year.