Bill Summary for S 863 (2015-2016)

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Summary date: 

May 11 2016

Bill Information:

View NCGA Bill Details2015-2016 Session
Senate Bill 863 (Public) Filed Tuesday, May 10, 2016
AN ACT TO EXPAND ELIGIBILITY FOR THE MEDICAID PROGRAM TO INCLUDE ALL PEOPLE UNDER AGE SIXTY-FIVE WHO HAVE INCOMES EQUAL TO OR BELOW ONE HUNDRED THIRTY-THREE PERCENT OF THE FEDERAL POVERTY LEVEL, TO APPROPRIATE FUNDS FOR COSTS ASSOCIATED WITH THE EXPANSION, TO ACCOUNT FOR THE SAVINGS TO OTHER STATE PROGRAMS AS A RESULT OF THE EXPANSION, AND TO HAVE THE STATE SHARE OF COSTS OF THE EXPANSION FUNDED BY HOSPITAL PROVIDERS.
Intro. by Bryant.

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Bill summary

Includes whereas clauses discussing the NC Medicaid program.

Repeals Section 3 of SL 2013-5, provisions prohibiting Medicaid Expansion. 

Directs the Department of Health and Human Services, Division of Medical Assistance (DHHS), effective January 1, 2017, to provide Medicaid coverage to all people under age 65 that have incomes equal to or less than 133% of the federal poverty guidelines. Coverage provided will consist of the coverage described in 42 USC 1396(k)(1). Provides that persons in the expansion group with access to employer-sponsored insurance are eligible for assistance with the cost of insurance through the NC Health Insurance Premium Payment (NCHIPP) program. 

Appropriates from the General Fund to DHHS $7,008,705 in recurring funds for the 2016-17 fiscal year for administrative costs associated with the expansion. Provides that these funds are a state match for the estimated $21,026,116 for the 2016-17 fiscal year in federal funds that will be received for the expansion, which will also be used for associated administrative costs. Provides that if the amount of federal funds available for this purpose exceeds the amounts set forth in the statute, then the expenditure of state funds for this purpose must be reduced by an amount equal to the amount of excess federal funds that are available, and appropriates these excess federal funds for the purposes described in the statute.

Appropriates from the General Fund to DHHS $47,632,240 in recurring funds for the 2016-17 fiscal year as part of the Medicaid rebase. Provides that these state funds are a state match to an estimated $1,222,560,822 in federal funds that will be received to pay for Medicaid services. 

Sets out specified reductions to other state programs that serve the population that will be included in the Medicaid expansion, reflecting the savings generated by the expansion. 

Reorganizes the statutory sections of GS Chapter 108A, Article 7, which comprise the Hospital Provider Assessment Act, setting out the changes.

Enacts new GS 108A-131, Additional assessment amount for Medicaid expansion, establishing an additional assessment for hospital providers that are not fully exempt from both the equity assessment and UPL assessment under GS 108A-122(c). Sets out how the assessment is to be calculated each year by the Secretary of DHHS. Requires the Secretary to notify each hospital that is assessed of the following: (1) total state share of service and administrative costs of Medicaid expansion for the applicable time period, (2) the hospital's share of all Medicaid services billed, and (3) the amount assessed to the hospital. Includes provisions concerning the priority of an assessment collection as well as appeal provisions whereby the assessment amount determination can be reconsidered. Defines Medicaid expansion for the purposes of the statute.

Enacts new subsection GS 108A-124(e) setting out provisions concerning the payment of reduced payments of the assessment amounts in the case that any or all of the payment amount cannot be made. Effective July 1, 2017.

Unless otherwise provided, act becomes effective July 1, 2016.