KRS 205.6487: Establishment of trust fund -- Maintenance.

(1) A "Kentucky Children's Health Insurance Program Trust Fund" shall be

established for the purpose of receiving all appropriated funds, premiums, or

other revenue received by the Kentucky Children's Health Insurance Program

to be used for the payment of costs and services associated with the

administration of the program. Appropriations made to the Kentucky Children's

Health Insurance Program trust fund shall not lapse at the end of a fiscal year

but shall be carried forward in the trust fund account and shall be available for

allotment for its particular purpose in the next fiscal year.

(2) The Kentucky Children's Health Insurance trust fund may receive state

appropriations, gifts, and grants, including federal funds. Any unallotted or

unencumbered balances in the Kentucky Children's Health Insurance Program

trust fund shall be invested as provided for in KRS 42.500(9). Income earned

from the investments shall be credited to the Kentucky Children's Health

Insurance Program trust fund account.

(3) The secretary of the Cabinet for Health and Family Services shall, by

administrative regulation promulgated in accordance with KRS Chapter 13A,

provide for the administration of the trust fund.

(4) In administering the Kentucky Children's Health Insurance Program, the

administrative costs under the program shall be limited to no more than ten

percent (10%) of applicable program costs.

(5) The trust fund shall administer any savings from the implementation of the

cabinet's Kentucky Children's Health Insurance Program through managed

care and shall use those savings to provide state matching funds for any

enhanced federal funds available under Title XXI of the Federal Social Security

Act.