NC H1181

Establishes a new Department of Medical Benefits governed by a seven-member board of business, health care, and insurance experts to operate the Medicaid and NC Health Choice programs beginning July 1, 2016.

Transforms the Medicaid program from a traditional fee-for-service system to full-risk capitated health plans that cover all Medicaid services, with the state bearing only enrollment risk by 2018.

Implements regional health plans with competition between multiple provider-led and non-provider-led plans, phasing in full risk for provider-led plans over two years beginning July 1, 2016.

Creates a Joint Legislative Oversight Committee on Medical Benefits with 14 members to examine budgeting, financing, administrative, and operational issues related to Medicaid reform and program operations.

Provides a 5% monthly bonus to essential Department of Health and Human Services employees working on Medicaid through June 30, 2016, funded with $600,000 appropriated for fiscal year 2014-2015, plus $280,000 for initial board member compensation of $8,000 per month.