Bill > HB880

This bill establishes a Medicaid Stabilization Reserve Account designed to help manage potential budget shortfalls in Montana's Medicaid program. The bill requires that 50% of unexpended Medicaid general fund appropriations be transferred to this new account, with the other 50% going to the existing Budget Stabilization Reserve Fund, unless the latter is already at its statutory limit, in which case 100% would go to the Medicaid account. The account has a cap of 1.5% of general revenue appropriations, and any excess will be transferred to a capital developments account. The bill allows the governor to submit a budget amendment using these funds to reduce or eliminate proposed Medicaid program cuts during revenue shortfalls, but funds can only be appropriated if the budget director certifies a projected general fund deficit. Additionally, the bill includes a $50,000 appropriation from the general fund for Medicaid matching funds and mandates a $6 million transfer from the capital developments account to the new Medicaid Stabilization Reserve Account by June 30, 2025. The provisions will apply to Medicaid appropriations for fiscal year 2025 and subsequent years, providing a fiscal safety net for the state's Medicaid program.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC3799