North Carolina senate passes Medicaid reform plan

September 21, 2015

The North Carolina Senate passed a Medicaid reform bill, leaving the House to sign off on it before going to Gov. Pat McCrory, who is expected to sign the bill into law. The change allows private management companies to enter the state and manage the Medicaid population, about 1.9 million low-income North Carolinians, mostly women, children, elderly and disabled. The health insurance program runs about a $14 billion annual bill, of which the federal government pays two-thirds and state taxpayers the rest. Under the reformed model the state would dictate an amount it wishes to spend on Medicaid and award that amount to a third party, which then manages a set population. House leaders preferred a reform plan that allowed for providers to form ACOs and the final plan allows a place for these ACOs to work alongside the privately run MCOs.