Bill > S403

This bill addresses several key financial and administrative changes across North Carolina's state government, focusing primarily on Medicaid funding, state agency staffing, and budget reductions. The bill requires the Governor and Office of State Budget and Management to eliminate vacant positions across state agencies to achieve $19.7 million in recurring fund savings by October 2025, with the Department of Health and Human Services (DHHS) specifically tasked with eliminating vacant positions to save $32.6 million. Additionally, the bill increases Medicaid funding from $600 million to $690 million and appropriates additional funds for Medicaid managed care program contracts. The legislation also discontinues Medicaid coverage for obesity management medications effective October 2025, while maintaining coverage for diabetes-related medications. The bill mandates new reporting and auditing requirements for Medicaid eligibility determinations, including standards for processing time and accuracy, and empowers the Department of Health and Human Services to take corrective actions if counties fail to meet these standards. Furthermore, the bill reduces recurring funding for Future Building Reserves by $42.2 million and reduces the transfer to the State Capital and Infrastructure Fund by $34 million for the 2025-2026 fiscal year. The State Auditor is also directed to conduct performance audits of county social services' administration of the Supplemental Nutrition Assistance Program and Medicaid program, with $3 million appropriated to support these audits.

Government Affairs, Health and Social Services

https://www.ncleg.gov/BillLookUp/2025/S403