Notable Activity
When the North Carolina General Assembly adjourned from regular meetings at the end of July, legislators set monthly dates to possibly reconvene and take up outstanding legislation or address emerging needs. After not holding a voting session in August, it appears legislators intend to return the week of September 22 to conduct business.
Eligible items include conference committee reports, veto overrides, budget, and ongoing disaster recovery legislation. While details remain fluid, there’s potential for a mini-budget to address a Medicaid operations funding shortfall — known as Medicaid rebase. Other bills or funding needs may also be considered, though indications are the rebase issue is a priority due to its time sensitivity. While Governor Stein has vetoed seven bills that remain eligible for the General Assembly to override, NCACC has not heard that any overrides will be attempted this month.
Why Return Only for Medicaid Rebase?
The North Carolina Department of Health and Human Services (NCDHHS) released a letter in early August identifying a $319 million funding shortfall for Medicaid rebase. If unaddressed, NCDHHS would need to reduce Medicaid spending by cutting reimbursement rates to all participating Medicaid providers by 3% (up to 8-10% for select providers), and by eliminating some Medicaid-eligible services. The effective date was set for October 1, giving legislators limited time to act. If no action is taken, participating medical providers across the state would need to decide whether to absorb the reduced reimbursement rates or withdraw from Medicaid altogether.
Because the legislature did not meet at the end of August to address the shortfall, their September session is the last opportunity to approve funding by the deadline. While it is not known if legislators will fund the entire $319 million identified by NCDHHS, it is expected they will approve a significant portion of it to reduce the impact of the shortfall and help maintain healthcare options for North Carolinians.
What’s Next?
After September, legislators have also reserved October 21-23, November 18-20, and December 16 to continue their work. It remains to be seen whether they will return on those dates or what topics may be considered.