Use Fees For Medical Assistance Program General Fund Offset

For the 2020-21 state fiscal year (FY 2020-21), the act:

• Authorizes the use of healthcare affordability and sustainability fee revenue for state medical assistance program expenditures;
• Requires $161 million to be appropriated from the healthcare affordability and sustainability fee cash fund to offset general fund expenditures for the state medical assistance program;
• Reduces the FY 2020-21 general fund appropriation to the department of health care policy and financing (HCPF) for medical services premiums by $161 million; and
• Appropriates $161 million from the healthcare affordability and sustainability fee cash fund to HCPF for medical services premiums.

The act also clarifies that if the amount of healthcare affordability and sustainability fee revenue collected exceeds a federal limit, hospitals that received such excess federal matching money are responsible for repaying the excess federal money and any associated federal penalties to the federal government.

(Note: This summary applies to this bill as enacted.)