NC S863

Expands North Carolina Medicaid eligibility to all people under age 65 with incomes at or below 133% of the federal poverty level, effective January 1, 2017.

Appropriates $7,008,705 in state funds for administrative costs and $47,632,240 for Medicaid services in fiscal year 2016-2017, paired with estimated federal matching funds of $1,222,560,822.

Reduces appropriations to other state programs by $30,994,620 total ($8,185,997 to Mental Health, $14,308,623 to AIDS Drug Assistance Program, and $8,500,000 to Inmate Health Care) to account for savings from the expansion.

Imposes a new hospital provider assessment on hospitals to fund the state share of Medicaid expansion costs, calculated as a percentage of each hospital's Medicaid services billings.

Gives the hospital assessment higher priority than existing UPL and equity assessments if federal limitations require reduction of total Medicaid assessments.