Medicaid Supplemental Rate Fund. Creates the Medicaid Supplemental Rate Fund (the Fund) as a sub-fund of the Virginia Health Care Fund. Moneys in the Fund will be used to raise base Medicaid reimbursement rates for hospitals and health care providers in the Commonwealth. The bill will require nonprofit hospitals with over $300 million in annual revenues to pay state and local sales and use taxes, and such sales tax revenues will be deposited into the Fund. Nonprofit hospitals are currently exempt from paying state and local sales and use tax.