AN ACT to LOWER the THRESHOLD AT WHICH A REDUCTION OF THE FEDERAL MEDICAL ASSISTANCE PERCENTAGE triggers discontinuation of coverage for the medicaid expansion population.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 108A‑54.3C reads as rewritten:

§ 108A‑54.3C.  NC Health Works federal financial participation.

(a)        As used in this section, the term newly eligible individual has the same meaning as in 42 C.F.R. § 433.204.

(b)        If the federal medical assistance percentage for Medicaid coverage provided to the category of individuals described G.S. 108A‑54.3A(a)(24) newly eligible individuals falls below ninety percent (90%) the federal medical assistance percentage for Medicaid coverage provided to individuals who are not newly eligible individuals, then Medicaid coverage for this category of the individuals described in G.S. 108A‑54.3A(a)(24) shall be discontinued as expeditiously as possible but no earlier than the date the lower federal medical assistance percentage takes effect. Upon receipt of information indicating that the federal medical assistance percentage for Medicaid coverage provided to newly eligible individuals will be lower than ninety percent (90%), the federal medical assistance percentage for Medicaid coverage provided to individuals who are not newly eligible individuals, the Secretary shall promptly do all of the following:

(1)        Notify the Joint Legislative Oversight Committee on Medicaid, the Office of State Budget and Management, and the Fiscal Research Division of the determination and post this notice on the Department's website. The notice must include the proposed effective date of the discontinuation of coverage.

(2)        Submit all documents to the Centers for Medicare and Medicaid Services necessary to discontinue Medicaid coverage for the category of individuals described in G.S. 108A‑54.3A(a)(24).

SECTION 2.  This act is effective when it becomes law.