NC S403

Increases Medicaid funding from $600 million to $690 million in recurring funds beginning FY 2025-2026 to account for projected changes in enrollment, service costs, federal match rates, and implementation of the Children and Families Specialty Plan in December 2025

Eliminates vacant state agency positions to achieve $19.7 million in recurring General Fund savings by October 1, 2025, with DHHS required to eliminate additional vacant positions for $32.6 million in savings

Discontinues Medicaid coverage of obesity management medications effective October 1, 2025, reducing Medicaid funding by $34 million in recurring funds, while maintaining GLP-1 coverage for diabetes management

Requires local management entities/managed care organizations (LME/MCOs) to make intergovernmental transfers totaling $18 million annually to the Division of Health Benefits for FY 2025-2027

Establishes new timeliness and accuracy standards for county Medicaid eligibility determinations and redeterminations, with corrective action plans and potential state takeover of administration for non-compliant counties