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Committee OKs bill to use reserves to freeze Medicaid rate cuts; bill would provide $190 million, sponsor says
Summary
The Rules Committee gave a favorable report to the committee substitute for House Bill 491 to allow use of Medicaid reserve funds to pause planned provider rate cuts; sponsor said the change would provide $190 million and freeze rates at prior levels through June.
The North Carolina House Rules Committee voted to give a favorable report to the committee substitute (PCS) for House Bill 491, a measure that would allow the use of existing Medicaid reserve funds to halt scheduled provider rate cuts.
Representative L. Lambeth, who presented the bill, said the PCS "simply gives them the authority to use existing reserve funds that they have, enable enabling us to stop the rate cuts." Lambeth told the committee the change "provides a 190,000,000, and it freezes the rates at the previous level rates before the announced cuts," and said the pause should extend through June and allow time for a longer-term solution during the short session.
Representative Ball asked whether the reserve would be replaced. Lambeth replied that it was the intent of House leadership that the reserve be restored over time and that the state has historically maintained reserves for known events. "It's hard to know for sure, but that would be the intent," Lambeth said.
Representative Torvitt (question to the presenter) asked how far the action would carry the state; Lambeth replied it should carry "all the way through, to the June" timeline in expectation of a short session addressing a long-term fix.
Representative Gillespie moved for a favorable report to the PCS to House Bill 491, unfavorable to the original bill; the committee voice-voted the motion and the chair announced the ayes had it. The committee did not record a roll-call vote. The chair announced that House Bill 491 "is passed committee."
The committee also discussed uncertainty about whether the Senate would take up the measure when it returns; Lambeth said he did not know whether the Senate would act. The PCS provision and the $190 million figure were presented by the sponsor; the transcript does not include a detailed fiscal note or language text in the hearing record and does not specify the precise accounting mechanism for replacing reserves.
