OKPOLICY.ORG
The Legislature created the Rate Preservation Fund in 2019. Money in the fund is directed for use by the Oklahoma Health Care Authority to maintain reimbursement rates to Medicaid providers when the state’s FMAP — Federal Medical Assistance Percentage — decreases. The Health Care Authority may also request that money in the Rate Preservation Fund be transferred to other agency funds. Deposits to the fund are entirely at the discretion of the Legislature.
The Rate Preservation Fund started FY 2022 with $33.4 million and received significant deposits over the next several years to bring its balance to $495.7 million at the end of FY 2024. The Fund was expected to reach a balance of $595.7 million at the end of FY 2025.
The Rate Preservation Fund is one of three state reserve funds, along with the Rainy Day Fund and the Revenue Stabilization Fund.
