NC S550

Increases hourly wages for direct support professionals (DSPs) serving Medicaid beneficiaries under the North Carolina Innovations waiver by $3.25 per hour for fiscal years 2023-2024 and 2024-2025, effective July 1, 2023 or upon CMS approval, whichever is later.

Requires providers receiving rate increases to use at least 90% of the resulting funding to increase DSP wages above their June 30, 2023 baseline pay.

Mandates providers attest and provide documentation to verify compliance with the 90% requirement, with the Division of Health Benefits establishing documentation standards and potentially requiring payroll-based journals.

Allows the Division of Health Benefits to recoup funds from providers that fail to use at least 90% of the rate increase for DSP wage increases.

Appropriates $72 million in recurring state funds annually for the 2023-2025 fiscal biennium to provide a state match for $140 million in recurring federal funds, and requires local management entities to report quarterly on provider development efforts and rate increases.