NC H337

Establishes a 12-month North Carolina Smart Card Pilot Program under the Department of Health and Human Services to combat Medicaid fraud using biometric authentication and smart cards replacing traditional Medicaid assistance cards.

Requires smart cards to store recipient benefit information, insurance data, prescription history, and photos; includes fingerprint scanners and card readers at provider locations for multifactor authentication at point of transaction.

Implements fingerprint template storage on a secure central database (not on the card itself) compliant with federal HIPAA requirements to prevent card fraud, sharing, and unauthorized reproduction.

Pilot program success measured by meeting minimum criteria and achieving at least 3% reduction in average monthly recipient costs; Department may extend or revise program if targets not met.

Requires detailed report to Governor and legislature by June 30, 2012 on pilot program implementation and results; funds appropriated for fraud prevention in 2010-2011 fiscal year carry forward to support program execution.