NC H176

Creates new authority for the North Carolina State Health Plan to attach and garnish intangible property (bank deposits, wages, salaries, escheat funds) from individuals no longer employed to collect overpayments, erroneous payments, and unpaid premiums, effective October 1, 2021.

Requires the Plan to provide 30 calendar days' written notice before collection action, allowing individuals to repay in full or enter into a Plan-approved payment plan.

Limits wage and salary garnishment to no more than 10% of an individual's earnings, but allows garnishment of federal, state, and local government employee wages without limitation.

Establishes garnishment procedures including financial institution reporting requirements (quarterly or more frequent), 20-day compliance deadline for financial institutions, and 30-day deadline for other garnishees.

Prohibits Claims Processors from forgiving or writing off amounts owed to the Plan and requires them to recover overpayments or erroneous payments through all commercially reasonable means within one year, with any uncollected amounts becoming Claims Processor liability.