House Bill 555 - Medicaid Transformation Implementation

• Appropriates $33,758,136 for 2019-2020 and $199,784,238 for 2020-2021 from the General Fund to the Department of Health and Human Services for Medicaid and NC Health Choice program rebase.

• Appropriates $28,617,655 for 2019-2020 and $40,167,655 for 2020-2021 for transitioning to Medicaid managed care.

• Transfers $193,000,000 for 2019-2020 and $24,000,000 for 2020-2021 from the Medicaid Transformation Reserve to fund claims run-out and nonrecurring transformation needs up to $190,000,000 total.

• Establishes a Hospital Assessment Act with supplemental and base assessment rates (2.26% and 1.77% respectively for 2019-2020) applied to hospital costs, with exemptions for critical access hospitals, psychiatric hospitals, and UNC teaching hospitals.

• Expands gross premiums tax to prepaid health plans at 1.9% rate on capitation payments received from Medicaid and NC Health Choice programs effective October 1, 2019.