Senate Moves Medicaid Transformation Bill Along

This week, S808, now called Medicaid Funding Act, was substantially changed through a committee substitute that was passed in the Senate Appropriations Committee.  Here is the breakdown of the substitute bill:

Related to Medicaid Transformation

• Changes start date for Standard Plans to no later than July 1, 2021;
• Authorizes each PHP, including the regional PHP contract, for the Standard Plan to be paid $4 million, for each full month after June 30, 2021, that the State is not able to make Medicaid capitated payments;
• $19.42 million appropriated for infrastructure needs such as NC FAST upgrades, data management tools, program integrity;
• Allows DHHS to make a request for a transfer of funds that will cover qualifying needs such as the State share and will not be more than $63.12 million;
• Allows for the Tribal Medicaid managed care option;
• Revises the Supplemental Payment Program;
• Establishes the Medicaid Contingency Reserve;
• Establishes the Hospital Assessment Act;
• Amends the Gross Premium Tax to include PHP capitated contracts;
• Establishes the Hospital Uncompensated Care Fund;

Other Provisions:

• $50 million from the Coronavirus Relief Fund appropriated to the LME/MCOs to address the COVID-19 behavioral health and crisis service response. 
• Appropriates funds for the Medicaid program that include: 
  • $213 m, $136 m and $84 m transferred from different State funds to fund the Medicaid program rebase (essentially adjusting the budget to the current financial picture) and $30 m of current Medicaid funds will not revert to the General Fund of the State;
• Appropriates $15 million to select land located in Wake County suitable for the Dorothea Dix campus relocation project. 
• Appropriates $6.15 million for updates and changes to the child welfare case management component of the North Carolina Families Accessing Services through Technology (NC FAST) system, including child welfare program changes in accordance with the federal Family First Prevention Services Act, updates for the Comprehensive Child Welfare Information System (CCWIS), funding for the Independent Verification and Validation (IV&V) contract, and risk assessment tool changes under Rylan’s Law, S.L. 2017-41.

New Law Requires State and Local School-Based Mental Health Plans

Governor Cooper signed into law S476/SL 2020-7:School-Based Mental Health.  The bill requires the State Board of Education to develop a school-based mental health plan for the State.  The State Board will also establish minimum requirements for each school district to also develop a school-based mental health plan and a mental health training program and model suicide risk referral protocol. The bill was effective when it became law.  Dates to pay attention to include:

• 12/31/20:  Superintendent of Public Instruction will ensure that a copy of the school-based mental health policy adopted by the State Board is made available to each K-12 school unit by December 31, 2020;
• 7/1/21:  Each K-12 school unit will adopt a school-based mental health plan that incorporates the State Board policy, including a mental health training program and suicide risk referral protocol, no later than July 1, 2021;
• 6/2022:  School personnel required to complete the training and employed in a K-12 school unit as of the effective date of this act will complete their initial mental health training by the end of the 2021-2022 school year.

The Superintendent’s Working Group on Student Health and Well-Being report of 5/31/18 includes recommendations that the State Board must use for the school-based mental health plan.