Bill > S405

This bill makes several significant adjustments to healthcare and budget funding in North Carolina, primarily focusing on the Department of Health and Human Services (DHHS). The bill increases Medicaid funding by $690 million for the 2025-2026 fiscal year and allocates an additional $49.2 million in recurring funds, with $34.4 million from the ARPA Temporary Savings Fund, to support the state's Medicaid managed care program. It requires local management entities/managed care organizations (LME/MCOs) to make intergovernmental transfers totaling $18 million annually and reduces single-stream funding for mental health services by $30 million. The bill mandates DHHS to eliminate vacant positions to achieve $34 million in General Fund savings, with specific reductions across various divisions, and directs the department to develop a plan for improving Medicaid program efficiency and cost-savings. Additionally, the bill requires the Office of the State Auditor to examine Medicaid eligibility redetermination efforts and conduct a performance audit of county social services departments. The legislation also reduces funding for Future Building Reserves by $42.2 million and is retroactively effective to July 1, 2025, with most provisions aimed at optimizing healthcare services and reducing state expenditures.

Government Affairs, Health and Social Services

https://www.ncleg.gov/BillLookUp/2025/S405