NC S509

Requires healthcare providers receiving State health care funds (Medicaid, State Health Plan, DHHS programs) to connect to North Carolina's Health Information Exchange (HIE) Network and submit demographic, clinical, and claims data at least twice daily

Establishes a new annual State health data assessment fee for covered entities not connected to or not submitting data through the HIE Network, with fees ranging from $3,000 to 1.6% of State health care funds received, depending on funding level and compliance year (2028-2030)

Creates civil penalties of $5,000-$10,000 plus triple damages for knowingly submitting false records to avoid the assessment fee, and $50/day penalties for late or non-compliant annual compliance reports due May 1st each year

Adds the Deputy Secretary for Medicaid as a voting member of the HIE Advisory Board and expands the definition of "State-funded health care" to include the State Health Plan for Teachers and State Employees and Department of Adult Correction programs

Authorizes the HIE Authority to provide optional data-related services to participating covered entities on a cost-recovery basis and establishes an HIE Network Data and Participation Fund to receive assessment fees, effective December 1, 2025