(1) There is hereby established within the Cabinet for Health and Family Services a restricted fund to be known as the Kentucky Medicaid pharmaceutical rebate fund. All moneys received by the Cabinet for Health and Family Services or the Department for Medicaid Services as compensation or rebate, including supplemental rebates, from a pharmaceutical drug manufacturer, the state pharmacy benefit manager contracted by the department pursuant to KRS 205.5512, or any other third-party entity contracted to administer or assist in administering any aspect of the Medicaid program, minus any remittance that may be owed to the federal government, shall be deposited into the fund.
(2) Moneys deposited into the fund shall be expended by the Department for Medicaid Services in accordance with federal law.
(3) Notwithstanding KRS 45.229, moneys in the Kentucky Medicaid pharmaceutical rebate fund at the close of state fiscal year 2024-2025 and state fiscal year 2025- 2026 shall not lapse but shall be carried forward into the next fiscal year.