Amends Section 9A of SL 2015-245, as enacted by Section 2 of SL 2016-121, concerning the implementation of plans to transform the Medicaid and NC Health Choice Programs. Currently, Section 9A authorizes the Department of Health and

Human Services (DHHS) to seek approval from the Centers for Medicare & Medicaid Services (CMS) through the demonstration waiver application pursuant to Section 1115 of the Social Security Act, or other waivers and State Plan amendments to implement the act, in order to allow parents to retain Medicaid eligibility while their child is being served temporarily by the foster care program. Amends the provisions to require DHHS to seek approval from CMS through the 1115waiver required by the act, or another 1115 waiver, to allow parents to retain Medicaid eligibility who are participating in, and making reasonable efforts to comply with, a court-ordered substance use disorder or other mental health disorder treatment program or counselling while their child is being served temporarily by the foster care program. Eliminates the statement of legislative intent to expand Medicaid eligibility to cover this population upon implementation of the 1115 waiver, if approved by CMS.

Makes related changes to GS 108A-54.3A, which sets forth eligibility categories and income thresholds for Medicaid coverage. Adds a new category to require coverage for a parent who has qualified under the family eligibility categories and income levels of subdivisions (1) and (2) who are participating in a court-ordered substance use disorder or other mental health disorder treatment program or counselling and has one or more children that are temporarily in the legal custody of a State-sponsored foster care or temporarily receiving foster care assistance under Title IV-E of the Social Security Act. Requires maintaining the income requirements specified to retain Medicaid eligibility under the new subdivision. Makes these provisions effective upon CMS granting approval of a 1115 waiver, as required to be obtained by the act, and upon the date CMS allows.