SECTION 1. Chapter 29 of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by inserting after section 2GGGG the following section: --

Section 2HHHH.  There shall be established and set up on the books of the commonwealth as a separate fund to be known as the Medicaid and Health Care Reform FMAP Trust Fund. The fund shall consist of any funds that may be appropriated or transferred for deposit into the trust fund, interest earned on such revenues, and other sources. The comptroller shall deposit an amount to the fund determined by secretary of administration and finance that is equivalent to the additional Medicaid and Children’s Health Insurance Program funding provided by the federal government pursuant to the increased federal Medicaid assistance percentage pursuant to the Sections 2001 and 2101 of the Patient Protection and Affordable Care Act of 2010 and as further addressed in Section 1201 of the Health Care and Education Reconciliation Act of 2010. The fund shall be used for the following purposes: (1) to support the financing of health insurance coverage for low-income Massachusetts residents, including MassHealth, other state health insurance programs and insurance offered through the commonwealth’s health insurance exchange and (2) to improve Medicaid reimbursement to health care providers. The secretary of administration and finance shall administer the fund and approve requests for the transfer of funds to other state accounts in a manner consistent with the recommendations of the House and Senate Ways and Means Committee and the Joint Committee on Healthcare Financing. No later than January 31 of each year, the secretary, in consultation with the executive office of health and human services, the commonwealth health insurance connector authority, healthcare providers participating in the Medicaid program, and consumer representatives, shall submit a report to the house and senate ways and means committees and the joint committee on health care financing that includes the current funding available in the fund, the funding estimated to be deposited through the end of the current and subsequent fiscal year, estimated expenditures from the fund, and recommendations for transferring such funds to other state accounts and funds in a manner consistent with the purpose of the fund.