AN ACT to modernize certain medicaid provider rates.

The General Assembly of North Carolina enacts:

SECTION 1.(a)  The Department of Health and Human Services, Division of Health Benefits, shall increase the Medicaid rates paid to physicians, physician assistants, certified nurse practitioners, specialty medical health care providers, and dental care providers with the goal of increasing those rates to the same level as the 2023 Medicare rates for those services. This rate increase shall be implemented as soon as practicable after July 1, 2024.

SECTION 1.(b)  There is appropriated from the General Fund to the Department of Health and Human Services, Division of Health Benefits, the sum of three hundred ninety‑five million dollars ($395,000,000) in recurring funds for the 2024‑2025 fiscal year to implement Medicaid rate increases under this section. These funds shall provide a State match for seven hundred thirty‑six million dollars ($736,000,000) in recurring federal funds for the 2024‑2025 fiscal year, and those federal funds are appropriated to the Division of Health Benefits for the same purpose. These funds shall be used as follows:

(1)        Physicians, physician assistants, certified nurse practitioners. – The sum of two hundred seventy‑five million dollars ($275,000,000) in recurring funds for the 2024‑2025 fiscal year shall be used to increase Medicaid rates paid to physicians, physician assistants, and certified nurse practitioners. These funds provide a State match for five hundred twelve million dollars ($512,000,000) in recurring federal funds for the 2024‑2025 fiscal year.

(2)        Specialty medical health care providers. – The sum of seventy‑five million dollars ($75,000,000) in recurring funds for the 2024‑2025 fiscal year shall be used to increase Medicaid rates paid to specialty medical health care providers. These funds provide a State match for one hundred forty million dollars ($140,000,000) in recurring federal funds for the 2024‑2025 fiscal year.

(3)        Dental care providers. – The sum of forty‑five million dollars ($45,000,000) in recurring funds for the 2024‑2025 fiscal year shall be used to increase Medicaid rates paid to dental care providers. These funds provide a State match for eighty‑four million dollars ($84,000,000) in recurring federal funds for the 2024‑2025 fiscal year.

SECTION 1.(c)  Consistent with the authority of the Department of Health and Human Services, Division of Health Benefits, under G.S. 108A‑54(e), no modifications to the Medicaid program under this section shall be required to be maintained after the end of the 2024‑2025 fiscal year.

SECTION 2.  This act becomes effective July 1, 2024.