The North Carolina Senate passed a bill providing much-needed funding for Medicaid and a children's hospital.
The legislation, known as the Healthcare Investment Act or House Bill 562, was passed by the panel and later received full passage from the Senate. However, the House of Representatives is not yet expected to take up the bill, as its choice is for a Medicaid-only proposal.
Medicaid and Children's Hospital Bill
Republican lawmakers argue that the proposal prevents "unprecedented rate cuts" by the state Health Department. Senate President Pro Tempore Phil Berger also called first-term Democratic Gov. Josh Stein's moves politically motivated.
The proposed legislation has been reworked from the filing made in March, providing funding of $90 million for Medicaid on top of the recurring $690 million. It also includes a saving of $34 million from the elimination of vacant positions at the state Department of Health and Human Services (HHS), according to The Center Square.
Under the proposal, administration costs are aided by an appropriation of $76.6 million, $42.2 million of which is recurring. The state auditor's office will also get $1 million for use in determining Medicaid eligibility redetermination on the local level.
The new bill's language establishes a freestanding children's hospital in funding the North Carolina Children's Hospital and NC Cares. In 2023, the Senate and House of Representatives approved three years of funding. The latest legislation gets the last $103.5 million of roughly $320 million for the hospital.
One of the biggest issues over the debate regarding the proposal is the prospect of patients losing health care and medical workers losing their jobs if the House does not agree to a medical funding bill that includes the children's hospital, the NC Newsline reported.
A Clean Bill
Democratic lawmakers in the House and Senate asked for what they called a "clean" bill that deals only with the additional money for Medicaid. This was in response to fears of an impasse between House and Senate Republicans triggering reduced payments to providers, who will then choose to cut medical services.
Under the proposed legislation, the state HHS would be required to develop a plan for cost savings and efficiencies within the Medicaid program. This would be done by engaging stakeholders, particularly with prepaid health plans.
There was $600 million that was included in the state's mini-budget, which was signed into law in August by Democratic Gov. Josh Stein. This was done in support of both the Medicaid rebase, as per The Carolina Journal.
