GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H	1
HOUSE BILL 1082

 
 
Short Title:	State Pays 100% Nonfederal Medicaid Share.	()	
Sponsors:	Representatives Arnold;  Goodwin, Russell, and Fitch.	
Referred to:	Appropriations.	
April 11, 2001

A BILL TO BE ENTITLED
AN ACT TO PROVIDE THAT THE STATE SHALL PAY ONE HUNDRED PERCENT OF THE NONFEDERAL SHARE OF MEDICAID COSTS AND TO APPROPRIATE FUNDS THEREFOR.

The General Assembly of North Carolina enacts:
SECTION 1.  There is appropriated from the General Fund to the Department of Health and Human Services, Division of Medical Assistance, the sum of three hundred sixty‑four million one hundred sixty‑five thousand forty‑one dollars ($364,165,041) for the 2001‑2002 fiscal year and the sum of four hundred eight million six hundred twelve thousand three hundred twenty‑three dollars ($408,612,323) for the 2002‑2003 fiscal year.  These funds shall be used to pay one hundred percent (100%) of the nonfederal share of Medicaid costs for the 2001 fiscal biennium.
SECTION 2.(a) G.S. 108A‑54 reads as rewritten:
"§ 108A‑54.  Authorization of Medical Assistance Program.
The Department is authorized and empowered to establish a Medical Assistance Program from federal and State appropriations and to adopt rules and regulations under which payments are to be made in accordance with the provisions of this Part."
SECTION 2.(b) G.S. 108A‑57 reads as rewritten:
"§ 108A‑57.  Subrogation rights; withholding of information a misdemeanor.
(a)	Notwithstanding any other provisions of the law, to the extent of payments under this Part, the State shall be subrogated to all rights of recovery, contractual or otherwise, of the beneficiary of this assistance, or of the beneficiary's personal representative, heirs, or the administrator or executor of the estate, against any person. The attorney retained by the State, or an attorney retained by the beneficiary of the assistance if this attorney has actual notice of payments made under this Part shall enforce this section. Any attorney retained by the beneficiary of the assistance shall, out of the proceeds obtained on behalf of the beneficiary by settlement with, judgment against, or otherwise from a third party by reason of injury or death, distribute to the Department the amount of assistance paid by the Department on behalf of or to the beneficiary, as prorated with the claims of all others having medical subrogation rights or medical liens against the amount received or recovered, but the amount paid to the Department shall not exceed one‑third of the gross amount obtained or recovered.
The United States and the State of North Carolina shall be entitled to shares in each net recovery under this section. Their shares shall be promptly paid under this section and their proportionate parts of such sum shall be determined in accordance with the matching formulas in use during the period for which assistance was paid to the recipient.
(b)	It is a Class 1 misdemeanor for any person seeking or having obtained assistance under this Part for himself or another to willfully fail to disclose to the county department of social services or its attorney the identity of any person or organization against whom the recipient of assistance has a right of recovery, contractual or otherwise."
SECTION 2.(c) G.S. 108A‑57.1 reads as rewritten:
"§ 108A‑57.1.  Rules governing transfer of medical assistance benefits between counties.
Any recipient of medical assistance who moves from one county to another county of this State shall continue to receive medical assistance if eligible. The county director of social services of the county from which the recipient has moved shall transfer all necessary records relating to the recipient to the county director of social services of the county to which the recipient has moved."
SECTION 2.(d) G.S. 108A‑59 reads as rewritten:
"§ 108A‑59.  Acceptance of medical assistance constitutes assignment to the State of right to third party benefits; recovery procedure.
(a)	Notwithstanding any other provisions of the law, by accepting medical assistance, the recipient shall be deemed to have made an assignment to the State of the right to third party benefits, contractual or otherwise, to which he may be entitled.
It shall be the responsibility of an attorney retained by the State to enforce this subsection, and the attorney shall be compensated for the attorney's services in accordance with the attorneys' fee arrangements approved by the Department of Health and Human Services.
(b)	The responsible State agency will establish a third party resources collection unit that is adequate to assure maximum collection of third party resources.
(c)	Notwithstanding any other law to the contrary, in all actions brought pursuant to subsection (a) of this section to obtain reimbursement for payments for medical services, liability shall be determined on the basis of the same laws and standards, including bases for liability and applicable defenses, as would be applicable if the action were brought by the individual on whose behalf the medical services were rendered."
SECTION 3.  This act becomes effective July 1, 2001.