In this subtitle the following words have the meanings indicated. “AHEAD Model” means the States Advancing All–Payer Health Equity Approaches and Development Model administered by the Center for Medicare and Medicaid Innovation. “Fund” means the Population Health Improvement Fund. “Statewide health equity plan” means the equity plan required under the AHEAD Model State Agreement with the Centers for Medicare and Medicaid Services.

There is a Population Health Improvement Fund. The purpose of the Fund is to invest in population health improvements to support the statewide population health targets under the AHEAD Model and any successor models. The Department and the Health Services Cost Review Commission jointly shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: The revenues from the uniform, broad–based assessment made under subsection (l) of this section; Money appropriated in the State budget to the Fund; Interest earnings; and Any other money from any other source accepted for the benefit of the Fund. Subject to paragraphs (2), (3), and (4) of this subsection and except as provided under paragraph (3) of this subsection, the Fund may be used only for expenses associated with statewide population health improvement initiatives in alignment with the statewide health equity plan as directed by the Secretary. Except as provided under paragraph (3) of this subsection, activities paid for by the Fund must support the goal of meeting the statewide population health targets outlined in the AHEAD Model State Agreement with the Centers for Medicare and Medicaid Services and have at least one of the following functions: Reducing rates of common preventable health conditions; Addressing health–related social needs; or Reducing or eliminating health disparities. In calendar year 2026 only, up to $14,000,000 in the Fund may be used to fund expenses of the Medical Care Programs Administration within the Department if the Health Services Cost Review Commission increases hospital rates to provide financial assistance to Medicare Advantage Plans. The Department and the Health Services Cost Review Commission may, in a manner consistent with the AHEAD Model State Agreement, transfer money from the Fund to the Public Health Workforce Development Fund established under § 24–2802 of this article. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. Expenditures from the Fund may be made only in accordance with the State budget. Money expended from the Fund is supplemental to and is not intended to take the place of funding that would otherwise be appropriated for the Maryland Medical Assistance Program. The Fund is subject to audit by the Office of Legislative Audits as provided in § 2–1220 of the State Government Article. On or before July 1 each year, beginning in 2026, the Department shall submit a report to the General Assembly, in accordance with § 2–1257 of the State Government Article. The report required under paragraph (1) of this subsection shall: Reflect the required elements of the annual progress report as outlined in the State agreement and shall include: Measures of effectiveness for funded programs and targeted populations; Any impact on health outcomes and health disparities; and Relevant components from hospital required reporting to the Health Services Cost Review Commission on population health improvement efforts; and Include: An accounting of all sources of funding accepted for the benefit of the Fund and the amount of funding from each source; and A summary of the extent to which public comments informed the work of the Department and the Commission. The Department shall make a draft of its report available for public comment for 30 days. Subject to paragraph (2) of this subsection, each year of the Total Cost of Care Model, the AHEAD Model, or any successor model, the Health Services Cost Review Commission may assess a uniform, broad–based, and reasonable amount in hospital rates to be credited to the Fund. The Health Services Cost Review Commission shall include the full amount of the assessment authorized under paragraph (1) of this subsection in the hospital rates. Any funds generated from the assessment authorized under paragraph (1) of this subsection may be used only for the expenses described in subsection (f) of this section.