Directs the Joint Legislative Program Evaluation Oversight Committee to include in the work plan of the Program Evaluation Division (Division) an evaluation of the State Health Plan, with the goal of determining whether there are changes that will increase preventative health services, improve health outcomes, and lover the overall cost of healthcare. Requires the Division to contract with consultants and include an evaluation of the direct primary care model in its study. Specifically requires the Division to determine: (1) the contract options for improving primary care physician quality of life in a rural setting that include but are not limited to a direct primary care type payment model and (2) the total cost implications and legislation needed to implement recommendations. Directs the Division to submit a report to the Joint Legislative Program Evaluation Oversight Committee on or before September 1, 2018.

Similarly, directs the Department of Health and Human Services (DHHS) to study whether there are changes to the State Medicaid Program that will increase preventative health services, improve health outcomes, and lower the overall cost of healthcare. Requires DHHS to include an evaluation of the direct primary care model in its study. Specifically requires DHHS to determine: (1) the relationship of options to outcome measures that will be included in the Prepaid Health Plan contracts under the transformed Medicaid program, (2) the contract options for improving primary care physician quality of life in a rural setting that include but are not limited to a direct primary care type payment model, and (3) the total cost implications and legislation needed to implement recommendations. Directs DHHS to submit a report to the Joint Legislative Oversight Committee on Medicaid and NC Health Choice on or before October 1, 2019.