NC S690

Effective October 1, 2023, the Department of Health and Human Services shall increase Medicaid rates for direct care providers including waiver programs (CAP/C, CAP/DA, NC Innovations, TBI), personal care services, intermediate care facilities, home health, nursing homes, and behavioral health residential facilities.

Providers receiving rate increases must use at least 80% of the funding to increase direct care worker wages, in addition to existing pay rates as of September 30, 2023.

The Department shall adjust capitation rates paid to local management entities/managed care organizations and prepaid health plans to implement the same rate increases for providers paid through these entities.

Appropriates $187.5 million in state funds for fiscal year 2023-2024 and $250 million for fiscal year 2024-2025, matched with $354.5 million and $483 million in federal funds respectively.

Providers must attest and document that at least 80% of rate increase funding goes to wage increases, with the Department authorized to recoup funds from non-compliant providers.