Requires counties to reimburse providers and facilities that provide approved medical services to inmates in local confinement facilities the lesser amount of either: (1) 70% of the provider's then current prevailing charge or (2) two times the then current Medicaid rate for any given service. Gives counties the right to audit a provider to determine the actual prevailing charge. Does not apply to vendors providing services that are not billed on a fee-for-service basis. Does not preclude a county from contracting with a provider for services at a rate that provides greater documentable cost avoidance for the county or at rates that are less favorable but ensure continued access to care.

Amends GS 153A-225 to add that a local confinement facility's plan for providing prisoner medical care may use Medicaid coverage for eligible prisoners, as long as the plan includes a reimbursement to the state for the state's portion of the costs.

Effective July 1, 2013.