summary
Introduced
03/05/2025
03/05/2025
In Committee
03/06/2025
03/06/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Session
Bill Summary
AN ACT TO PROVIDE A WAGE INCREASE TO DIRECT SUPPORT PROFESSIONALS THAT SERVE MEDICAID BENEFICIARIES RECEIVING SERVICES UNDER THE NORTH CAROLINA INNOVATIONS WAIVER. Whereas, local management entities/managed care organizations (LME/MCOs) must maintain adequate provider networks pursuant to their managed care contracts and 42 C.F.R. § 438.68 and must "assure clients' care is coordinated, received when needed, likely to produce good outcomes, and is neither too little nor too much service to achieve the desired results" pursuant to G.S. 122C-115.4(b)(5); and Whereas, there is a serious shortage of direct support professionals (DSPs) available to provide services under the North Carolina Innovations waiver and other funding sources supporting the needs of people with intellectual and developmental disabilities (I/DD); and Whereas, the DSP workforce shortage has caused significant disruption in services for many Medicaid beneficiaries with I/DD; and Whereas, a leading factor in the DSP workforce shortage is the inadequacy of compensation rates; and Whereas, legislatively provided, short-term DSPs pay enactments are not a substitute for LME/MCO responsibility to maintain adequate rates and network adequacy in their respective catchment areas on an ongoing basis; and Whereas, appropriate and competitive compensation rates vary geographically, and the monitoring of such local market conditions is within the purview and responsibility of each LME/MCO; Now, therefore,
AI Summary
This bill aims to address the shortage of direct support professionals (DSPs) who serve Medicaid beneficiaries with intellectual and developmental disabilities by implementing a significant wage increase. Specifically, the bill will provide a $5 per hour wage increase for DSPs in each of the fiscal years 2025-2026 and 2026-2027, effectively raising their hourly wages by a total of $10. The Department of Health and Human Services, Division of Health Benefits (DHB) will provide rate increases to providers, with a requirement that at least 90% of this additional funding must be directly used to increase DSP wages. Local management entities/managed care organizations (LME/MCOs) will be required to adjust their capitation rates to support this wage increase, and providers must verify their compliance by maintaining documentation of wage increases. The bill includes substantial funding appropriations, with $115.37 million in state recurring funds and $210.73 million in federal funds for the 2025-2026 fiscal year, increasing to $230.78 million in state funds and $421.52 million in federal funds for the 2026-2027 fiscal year. Additionally, LME/MCOs will be required to report quarterly on their provider development efforts related to the DSP workforce. The goal is to create more competitive compensation for DSPs to help address the significant workforce shortage in services for Medicaid beneficiaries with intellectual and developmental disabilities.
Committee Categories
Budget and Finance
Sponsors (6)
Lisa Grafstein (D)*,
Tim Moffitt (R)*,
Gale Adcock (D),
Sophia Chitlik (D),
Mujtaba Mohammed (D),
Caleb Theodros (D),
Last Action
Re-ref Com On Appropriations/Base Budget (on 03/06/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ncleg.gov/BillLookUp/2025/S239 |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/Senate/PDF/S239v1.pdf |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/Senate/PDF/S239v0.pdf |
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