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Bill > H562


NC H562

NC H562
Healthcare Investment Act


summary

Introduced
03/27/2025
In Committee
09/22/2025
Crossed Over
05/07/2025
Passed
Dead

Introduced Session

2025-2026 Session

Bill Summary

AN ACT TO ADJUST MEDICAID FUNDING TO ACCOUNT FOR PROJECTED CHANGES AND MAKE OTHER REVISIONS TO LAWS GOVERNING THE DEPARTMENT OF HEALTH AND HUMAN SERVICES; TO APPROPRIATE FUNDING FOR THE UNC CHILDREN'S HOSPITAL AND NC CARE INITIATIVE HEALTH CLINICS; AND TO REDUCE FUNDING APPROPRIATED TO THE FUTURE BUILDING RESERVES AND THE STATE CAPITAL AND INFRASTRUCTURE FUND.

AI Summary

This bill adjusts Medicaid funding, appropriates funds for specific health initiatives, and reduces funding for certain reserves and capital projects for the 2025-2027 fiscal biennium. * **Medicaid Funding Adjustment:** An additional $690,000,000 in recurring funds from the General Fund is appropriated to the Department of Health and Human Services (DHHS), Division of Health Benefits, for each fiscal year of the 2025-2027 biennium. This is to adjust Medicaid funding for projected changes in enrollment, costs, and federal match rates, and for the implementation of the Children and Families Specialty Plan. An additional $49,200,000 in recurring funds and $34,400,000 in nonrecurring funds from the ARPA Temporary Savings Fund are also appropriated for Medicaid managed care contracts. * **LME/MCO Intergovernmental Transfers:** Local Management Entities/Managed Care Organizations (LME/MCOs) will transfer a total of $18,028,217 annually for the 2025-2026 and 2026-2027 fiscal years to DHHS, Division of Health Benefits. * **Single-Stream Funding Reduction:** Funding for single-stream services within DHHS, Division of Mental Health, Developmental Disabilities, and Substance Use Services (DMH/DD/SUS) is reduced by $30,000,000 in recurring funds annually for the 2025-2027 biennium. * **Opioid Settlement Funds:** $1,850,000 in nonrecurring funds from the Opioid Abatement Fund will be transferred to the Opioid Abatement Reserve. Additionally, $14,000,000 in recurring funds annually from the Opioid Abatement Reserve will be transferred to DMH/DD/SUS to offset the reduction in single-stream funding. * **Vacant Position Eliminations:** DHHS is required to eliminate vacant positions to achieve $33,986,530 in recurring General Fund savings annually for the 2025-2027 biennium. * **Whole Child Health Section Reduction:** Funding for the Whole Child Health Section within DHHS, Division of Child and Family Well-Being, is reduced by $100,000 in recurring funds annually for the 2025-2027 biennium. * **Medical Eye Care Program Reduction:** Funding for the Medical Eye Care Program within DHHS, Division of Services for the Blind, is reduced by $110,000 in recurring funds annually for the 2025-2027 biennium. * **Medicaid Managed Care Cost-Savings Plan:** DHHS is directed to develop a plan by April 1, 2026, for improved health outcomes, program integrity, cost-savings, and efficiency measures in the Medicaid program. * **Medicaid Redetermination Audit:** $1,000,000 in nonrecurring funds from the General Fund is appropriated to DHHS, Division of Health Benefits, to be transferred to the Office of the State Auditor for an examination and audit of Medicaid eligibility redetermination efforts. * **Future Building Reserves Reduction:** Funding for Future Building Reserves is reduced by $42,206,909 in recurring funds annually for the 2025-2027 biennium. * **Capital Project Funding:** $208,500,000 in nonrecurring funds is appropriated from the State Capital and Infrastructure Fund to the Office of State Budget and Management for specific UNC projects in the 2025-2026 fiscal year. This amount is transferred from the ARPA Temporary Savings Fund.

Committee Categories

Budget and Finance, Government Affairs, Health and Social Services

Sponsors (15)

Last Action

Failed Concur In S Com Sub (on 04/21/2026)

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