NC H881

Requires area authorities (local management entities/managed care organizations) to report to county boards, DHHS, and the Joint Legislative Commission on Governmental Operations at least 90 days before purchasing, altering, improving, or rehabilitating real estate costing over $100,000.

Reporting must include project cost breakdown (land acquisition, materials, labor), funding sources with interest rates, available financial reserves, reserves as percentage of annual operating budget, administrative costs from two prior fiscal years and current year, and Medicaid service denial rates from two prior fiscal years and current year.

Area authorities may enter into options contracts to purchase real property before submitting required reports.

Requires the Department of Health and Human Services to consider available financial reserves and administrative costs of local management entities when negotiating per member per month (PMPM) payment rates for managed care services.

Section 1 reporting requirements effective July 1, 2014 for real estate projects on or after that date; remainder of bill effective upon enactment.