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Committee hears proposal to create Medicaid trust fund under Senate Bill 88
Summary
Members of the House Health and Human Services Committee heard a presentation on Senate Bill 88, which would create a state Medicaid trust fund seeded by overnight treasury deposits and designed to make 5% annual draws that the presenter said would be matched by federal funds. No vote was recorded in the transcript extract.
House Health and Human Services Committee members heard a presentation on Senate Bill 88, a proposal to create a Medicaid trust fund that would be seeded by interest from overnight treasury deposits and designed to generate annual draws for Medicaid.
The senator presenting the bill, identified in the transcript as Senator (Madam Vice Chair), told the committee, "Senate Bill 88 creates a Medicaid trust fund. The idea here is, like some of the other trust funds, we'll put money in it, and, eventually, we'll start drawing off, 5% of what's in there." The presenter said funds would come from overnight deposits to the treasury and cited a fiscal impact report figure.
According to the transcript of the presenter’s remarks, the fiscal impact report (FIR) shows "279,000,000 from overnight deposits back for 1 year." The presenter summarized a funding pathway: about $300,000,000 a year would be placed into the trust until it reached $2,000,000,000, at which point contributions would stop and the committee would start drawing 5% annually; the presenter added that "that 5 percent is then matched with the federal money," characterizing the federal match as part of the trust’s funding mechanism. The presenter said the trust fund would not replace Medicaid funding from the general fund: "Does it replace Medicaid, money coming from the general fund? Absolutely not. But it certainly, changes the dynamic of where the money comes from."
The transcript shows the presentation concluded with the presenter saying, "So with that, I'll stand for questions." The extract does not record any subsequent questions, motions, or votes on the bill.
The discussion in the transcript is limited to the overview of how the bill would be funded and the mechanics described by the presenter; no formal committee action or vote is recorded in the provided excerpt. Additional details such as the bill’s statutory text, eligibility rules for trust draw usage, or fiscal assumptions underlying the FIR were not specified in the available transcript excerpt.
The committee convened and took roll before the presentation; Representatives Anaya, Kates, E. Chavez, N. Chavez, Ferrari, Jones, Martinez, Sena Cortez and the vice chair were recorded as present in the roll call recorded by the committee clerk in the transcript.
Next steps were not specified in the excerpt.
