NC S488

Directs the Department of Health and Human Services to increase Medicaid rates for providers serving beneficiaries through the North Carolina Innovations waiver program to raise direct care worker wages by $6.50 per hour above the state industry average wage rate.

Requires rate increases to be implemented through directed payments to all local management entities/managed care organizations (LME/MCOs), with providers mandated to use at least 75% of resulting funds to increase direct care worker pay and provide verification through payroll documentation.

Authorizes DHB to recoup funds from providers that fail to use at least 75% of the rate increase for direct care worker wage increases.

Requires DHB to amend the Medicaid State Plan beginning in fiscal year 2025-2026 to annually adjust reimbursement rates for Innovations waiver services and intermediate care facilities for individuals with intellectual disabilities (ICF/IID) group homes based on medical and wage inflation.

Appropriates $90 million in state General Fund dollars for each year of the 2023-2025 fiscal biennium to match $174 million in federal funds for the wage increase initiative, effective July 1, 2023.