MODIFY LAWS APPLICABLE TO LME/MCOS.

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View NCGA Bill Details(link is external)2025-2026 Session
Senate Bill 527 (Public) Filed Tuesday, March 25, 2025
AN ACT TO MODIFY LAWS APPLICABLE TO LOCAL MANAGEMENT ENTITIES/MANAGED CARE ORGANIZATIONS.
Intro. by Burgin.

Status: Ref To Com On Rules and Operations of the Senate (Senate action) (Mar 26 2025)
S 527

Bill Summaries:

  • Summary date: Mar 26 2025 - View Summary

    Section 1.

    Removes provisions from GS 122C-154 (area authorities personnel of the public system of mental health, developmental disabilities, and substance abuse services) that (1) apply GS Chapter 126 (State Human Resources Act) for purposes of personnel administration and (2) allows salaries in excess of the salary ranges set by the State HR Commission as described. Makes conforming changes to GS 122C-156 (salary plans for employees of the area authority). Applies to employees of area authorities who are hired on or after the date the act becomes law and to salary plans established on or after that date.

    Section 2.

    Repeals GS 126-5(a)(2)a (applying the State Human Resources Act to area mental health, developmental disabilities, and substance abuse authorities, except as otherwise provided in GS Chapter 122). Makes conforming changes to GS 126-5 (employees subject to the State HR Act). Applies to employees of area mental health, developmental disabilities, and substance abuse authorities, defined as area authorities under GS 122C-3, hired after the date the act becomes law.

    Section 3.

    Removes area mental health programs as one of the entities a county may establish and maintain a personnel system for under GS 126-11 (local personnel systems). Removes provisions allowing area mental health authorities to establish and maintain a personnel system for all employees of the area mental health authority, as described with the required approval. Makes conforming changes.

    Section 4.

    Amends GS 108D-60, concerning behavioral health and intellectual/development disabilities tailored Medicaid plans (BH IDD tailored plans) to specify that Medicaid Local Management Entity/Managed Care Organizations (LME/MCO)’s operating BH IDD tailored plans only have contract with an entity that holds a Prepaid Health Plan (PHP) license and that covers the services required to be covered under a standard benefit plan contract during the initial contract term. After that term, allows LME/MCO’s operating BH IDD tailored plans to contract with an entity that holds a PHP license and that covers the services required to be covered under a standard benefit plan contract.