Surry County social services: off corrective action plan, but HR1 work requirements will raise Medicaid workload

Surry County social services reported two notable developments on Aug. 17: the county has satisfied its corrective action plan in child welfare and the agency faces substantial administrative work from federal HR1 changes to Medicaid eligibility.

The department’s director announced that the state released a letter saying Surry County has "successfully completed all requirements of their corrective action plan," moving the county off special caps and reflecting months of staff effort. "That’s a huge accomplishment," the director said.

At the same time, staff described changes tied to HR1 and related federal provisions that will shorten Medicaid certification periods from 12 months to six months and impose work/community‑engagement verifications for some beneficiaries. county social services staff said the new rules will require a three‑month lookback for work activity documentation and will increase re‑review frequency — effectively doubling administrative touches on many cases.

State support is coming: county staff said the state allocated roughly $296,000 to help cover the additional review work; those funds are restricted to Medicaid worker activities and are 75% reimbursable under program rules. Staff outlined initial hiring scenarios for additional workers and supervisory support funded within that allocation.

Why it matters: The procedural changes affect eligibility review cadence for thousands of recipients and increase local administrative workload. County officials said the funding will help add staff to meet the new requirements but warned the program raises paperwork and verification burdens for workers and clients.