North Carolina HB 576: Department of Health and Human Services Revisions.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2025-27
HOUSE BILL 576

*H576-v-4*
AN ACT MAKING TECHNICAL, CONFORMING, AND OTHER MODIFICATIONS TO
LAWS PERTAINING TO THE DEPARTMENT OF HEALTH AND HUMAN SERVICES.

The General Assembly of North Carolina enacts:

PART I. LAWS PERTAINING TO THE DIVISION OF CHILD AND FAMILY
WELL-BEING

DESIGNATE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES AS THE
STATE AGENCY RESPONSIBLE FOR MANAGING SCHOOL NURSE FUNDS
SECTION 1.1. G.S. 130A-4.3(b) reads as rewritten:
"(b) The Division of Public Health Department shall ensure that school nurses funded with
State funds (i) do not assist in any instructional or administrative duties associated with a school's
curriculum and (ii) perform all of the following with respect to school health programs:
(1) Serve as the coordinator of the health services program and provide nursing
care.
(2) Provide health education to students, staff, and parents.
(3) Identify health and safety concerns in the school environment and promote a
nurturing school environment.
(4) Support healthy food services programs.
(5) Promote healthy physical education, sports policies, and practices.
(6) Provide health counseling, assess mental health needs, provide interventions,
and refer students to appropriate school staff or community agencies.
(7) Promote community involvement in assuring a healthy school and serve as
school liaison to a health advisory committee.
(8) Provide health education and counseling and promote healthy activities and a
healthy environment for school staff.
(9) Be available to assist the county health department during a public health
emergency."

PART II. LAWS PERTAINING TO THE DIVISION OF HEALTH BENEFITS

TEMPORARILY EXTEND OPTION TO DECREASE MEDICAID ENROLLMENT
BURDEN ON COUNTY DEPARTMENTS OF SOCIAL SERVICES
SECTION 2.1. Section 1.8(a) of S.L. 2023-7, as amended by Section 9(a) of S.L.
2024-34, reads as rewritten:
"SECTION 1.8.(a) Notwithstanding G.S. 108A-54(d) and in accordance with
G.S. 143B-24(b), the Department of Health and Human Services (DHHS) is authorized, on a
temporary basis to conclude by June 30, 2025, 2028, to utilize the federally facilitated
marketplace (Marketplace), also known as the federal health benefit exchange, to make Medicaid
eligibility determinations. In accordance with G.S. 108A-54(b), G.S. 108A-54(f), these

Page 2 Session Law 2025-27 House Bill 576
eligibility determinations shall be in compliance with all eligibility categories, resource limits,
and income thresholds set by the General Assembly."

CLARIFY ENROLLMENT IN MEDICAID MANAGED CARE AFTER RELEASE
FROM INCARCERATION
SECTION 2.2.(a) G.S. 108D-40 reads as rewritten:
"§ 108D-40. Populations covered by PHPs.
(a) Capitated PHP contracts shall cover all Medicaid program aid categories except for
the following categories:
...
(9) Recipients who are inmates of prisons. Upon the recipient's release from
prison, the exception under this subdivision shall continue to apply for a
period that is the shorter of the following:until the first day of the month
following the twelfth month after the recipient's release.
a. The recipient's initial Medicaid eligibility certification period post
release.
b. Three hundred sixty-five days.
(9a) Recipients residing in carceral settings other than prisons and whose Medicaid
eligibility has been suspended. Upon the recipient's release from
incarceration, the exception under this subdivision shall continue to apply for
a period that is the shorter of the following:until the first day of the month
following the twelfth month after the recipient's release.
a. The recipient's initial Medicaid eligibility certification period post
release.
b. Three hundred sixty-five days.
...."
SECTION 2.2.(b) This section is effective when it becomes law and applies to (i)
inmates released on or after that date and (ii) inmates released on or after January 1, 2025, who
are not enrolled with a PHP on the date this act becomes law.

CONFORM NORTH CAROLINA LAW TO FEDERAL REQUIREMENTS FOR
MEDICAID CATEGORICAL RISK LEVELS FOR PROVIDER SCREENINGS
SECTION 2.3.(a) G.S. 108C-3 reads as rewritten:
"§ 108C-3. Medicaid provider screening.
(a) Provider Screening. – The Department shall conduct provider screening of Medicaid
providers in accordance with applicable State or federal law or regulation.
(b) Enrollment Screening. – The Department must screen all initial provider applications
for enrollment in Medicaid, including applications for a new practice location, and all
revalidation requests based on Department the Department's assessment of risk and assignment
of the provider to a categorical risk level of "limited," "moderate," or "high." limited, moderate,
or high. If a provider could fit within more than one risk level described in this section, the highest
level of screening is applicable.
(c) Limited Categorical Risk Provider Types. – The All of the following provider types
are hereby designated as "limited" limited categorical risk:
...