§ 46:2693 — Medicaid Trust Fund for Addiction Recovery

§2693. Medicaid Trust Fund for Addiction Recovery
A.(1) There is hereby established a permanent trust fund in the state treasury
designated the "Medicaid Trust Fund for Addiction Recovery", hereinafter referred to in this
Chapter as the "fund". After allocation of money to the Bond Security and Redemption Fund
as provided in Article VII, Section 9(B) of the Constitution of Louisiana, the treasurer shall
deposit in and credit to the fund all money that is received from any source, including but not
limited to intergovernmental transfers and all income on investment of monies in the fund.
(2) Monies in the fund shall be invested by the treasurer in the same manner as
monies in the state general fund, and interest earned on the investment of these monies shall
be credited to the fund. All unencumbered and unexpended monies in the fund at the end of
the fiscal year shall remain in the fund.
(3) Monies in the fund may be used as the source of state matching funds for
Medicaid funds to make enhanced payments to addiction providers.
(4) For the purposes of this Chapter, "addiction provider" means a Louisiana licensed
healthcare provider that provides any of the following services:
(a) Inpatient and residential substance use treatment.
(b) Substance use intensive outpatient treatment.
(c) Withdraw management.
B.(1) After July 1, 2025, self- assessed fees, federal grant allocations, or any other
source shall not be subject to appropriation unless authorized by a joint resolution approved
by two-thirds of the elected members of each house of the legislature and except to provide
for:
(a) The re-basing of reimbursement rates for addiction providers in accordance with
the approved state Medicaid plan.
(b) The development and funding of a reimbursement system for the Medicaid
addiction provider program.
(c) The reimbursement of any monies deposited into the fund as a result of over
payments of federal funds.
(2) Upon completion of the initial intergovernmental transfer, addiction providers
will be re-based in accordance with the approved state Medicaid plan. In ensuing years, re-basing in accordance with the approved state Medicaid plan may come from the principal in
the trust, but shall be limited to earnings on investment from the fund.
(3) Only earnings on investment from the fund may be appropriated each fiscal year
for services of the state Medicaid program in the following order of priority:
(a) For providing for a wage enhancement for direct care personnel working in
Medicaid certified addiction provider settings in accordance with a plan established by the
Louisiana Department of Health and representatives of the addiction provider industry. The
plan shall provide for a direct pass-through of the costs of such wage enhancement in a
manner to ensure that the addiction provider rate is adjusted to reflect the full costs of such
wage enhancement.
(b) For appropriations solely and exclusively for services of the state Medicaid
program that are subject to federal financial participation in matching funds.
(4) Monies in the fund shall not be used to displace, replace, or supplant
appropriations from the state general fund for the Medicaid program below the amount of
state general fund appropriations for the Medicaid program for the 2025-2026 Fiscal Year
unless the official forecast of recurring monies available for appropriation which is utilized
by the legislature in its adoption of the state budget for the ensuing fiscal year as provided
in R.S. 39:26 indicates that revenues for such year will be insufficient to fund the state
budget at the same level as the previous year.
C.(1) The Louisiana Department of Health is hereby authorized to adopt and impose
fees for healthcare services provided by the Medicaid program on addiction providers if and
when such fees are eligible to be utilized for federal funding matching requirements. The
amount of any fee shall not exceed the total cost to the state of providing the healthcare
service subject to such fee.
(2) Any fee authorized by and imposed pursuant to this Section shall be considered
an allowable cost for purposes of insurance or other third party reimbursements and shall be
included in the establishment of reimbursement rates.
(3) Subject to the exceptions contained in Article VII, Section 9(A) of the
Constitution of Louisiana, all fees collected pursuant to the authority granted in this Section
shall be paid into the state treasury and shall be credited to the Bond Security and
Redemption Fund. Out of the funds remaining in the Bond Security and Redemption Fund
after a sufficient amount is allocated from that fund to pay all obligations secured by the full
faith and credit of the state which become due and payable within any fiscal year, the
treasurer shall deposit the fees into the Medicaid Trust Fund for Addiction Recovery an
amount equal to the total amount of such fees collected.
D. The department shall promulgate rules and regulations in accordance with the
Administrative Procedure Act necessary to administer the fees imposed herein, including but
not limited to rules and regulations regarding the collection and payment of the fees and the
records necessary to be maintained and made available by the providers on whom the fees
are imposed.
E. The governor, by executive order, may designate any agency, department, or
division of state government to collect the fees authorized herein.

Legislative History

Acts 2025, No. 392, §1, eff. June 20, 2025.