NC H866

Establishes that the North Carolina State Health Plan for Teachers and State Employees holds a lien superior to all nongovernmental medical liens and rights, whether those liens are prior or subsequent to the State Health Plan lien.

Clarifies that the State Health Plan lien priority applies to funds recovered in personal injury civil actions and to settlement or compensation payments received outside of litigation.

Limits medical liens to a maximum of 50% of damages recovered, exclusive of attorney's fees, and clarifies that client disbursement instructions do not override lien requirements.

Extends the lien priority provision for charter schools withdrawing from the Teachers' and State Employees' Retirement System, allowing those entering a payment plan before June 14, 2023, to have the full three years to complete payments with lien priority applying throughout the entire payment period.

Becomes effective upon passage.