Medicaid Transformation Funding Signed into Law

from i2i Center for Integrative Health – Weekly Legislative Update for State Collaborative

Medicaid Transformation Funding Signed Into Law: The Medicaid Funding Act was signed into law by Governor Cooper. This accomplishes something that the Governor and the General Assembly were not able to do last year: 1) provide funding for the transition with the claims lag and other implementation costs; 2) establish provisions that are needed to support Medicaid Transformation. 

Related to Medicaid Transformation– 

  • Sets start date for Standard Plans to no later than July 1, 2021 with the option for a staggered start up to that date; 
  • $69.42 million appropriated for infrastructure needs such as NC FAST upgrades, data management tools, program integrity; 
  • Allows DHHS to make a request for a transfer of funds that will cover qualifying needs such as the State share and will not be more than $270 million; 
  • Allows for the Tribal Medicaid managed care option; 
  • Revises the Supplemental Payment Program; 
  • Establishes the Medicaid Contingency Reserve; 
  • Establishes the Hospital Assessment Act; 
  • Amends the Gross Premium Tax to include PHP capitated contracts; 
  • Establishes the Hospital Uncompensated Care Fund to make payments to Institutions for Mental Diseases (IMDs) and hospitals to reimburse inpatient services uncompensated care costs or outpatient services uncompensated care costs or both. 

Other Provisions with Appropriations: 

  • $50 million from the Coronavirus Relief Fund appropriated to the LME/MCOs to address the COVID-19 behavioral health and crisis service response. 
  • Appropriates funds for the Medicaid program rebase that include $213 m, $136 m and $84 m transferred from different State funds to fund the Medicaid program rebase (essentially adjusting the budget to the current financial picture) and $30 m of current Medicaid funds will not revert to the General Fund of the State. 
  • Appropriates $125 million to expand testing initiatives for COVID-19. 
  • Appropriates $15 million to select land located in Wake County suitable for the Dorothea Dix campus relocation project. 
  • Appropriates $26.4 million for NC FAST infrastructure updates. 
  • Appropriates $6.15 million for updates and changes to the child welfare case management component of the North Carolina Families Accessing Services through Technology (NC FAST) system, including child welfare program changes in accordance with the federal Family First Prevention Services Act, updates for the Comprehensive Child Welfare Information System (CCWIS), funding for the Independent Verification and Validation (IV&V) contract, and risk assessment tool changes under Rylan’s Law, S.L. 2017-41.