NC S696

Establishes a new Health Benefits Authority, independent of the Department of Health and Human Services, to govern North Carolina's Medicaid and NC Health Choice programs, effective October 1, 2015.

Creates a seven-member board appointed by the Governor and General Assembly with expertise in health administration, insurance, actuarial science, economics, and policy to oversee the Authority and ensure quality care at predictable costs.

Directs transition from fee-for-service to full-risk capitated health plans managed by competing provider-led and non-provider-led organizations in regional markets, with implementation timeline culminating in July 2017 for plan launch and July 2019 for full provider-led plan risk assumption.

Requires the Authority to develop and report a detailed reform plan by April 15, 2016, including enrollment projections, cost estimates, performance metrics, regional structure, and strategies to maintain existing Medicaid funding streams.

Establishes a Joint Legislative Oversight Committee on the Health Benefits Authority with 14 members to examine budgeting, financing, administrative, and operational issues related to the programs and creates a Medicaid Reserve Account with 9-25% target balance for managing budget shortfalls.