NC H989

Appropriates $33,758,136 in recurring General Fund dollars for Medicaid and NC Health Choice programs rebase and $28,617,655 for transitioning to Medicaid managed care in fiscal year 2019-2020.

Transfers $193,000,000 from Medicaid Transformation Reserve to Medicaid Transformation Fund, with up to $27,280,947 available for nonrecurring Medicaid transformation needs including program design, beneficiary experience, and system upgrades.

Repeals prior directives to eliminate graduate medical education and creates new Hospital Assessment Act effective October 1, 2019, establishing supplemental assessment (2.26%) and base assessment (1.77%) on hospital costs to fund Medicaid payments.

Revises supplemental payment program for medical professional providers, renaming it the Average Commercial Rate Supplemental and Directed Payment Program, and limits total payments to 75% of 2018-2019 baseline through June 30, 2020, then 100% thereafter with annual inflation adjustments.

Codifies Medicaid Contingency Reserve as a reserve for budget shortfalls and establishes Hospital Uncompensated Care Fund using federal disproportionate share adjustment receipts to reimburse hospitals for uncompensated care costs.