Legislators reach compromise to privatize North Carolina's $15B Medicaid program

North Carolina legislators have agreed to privatize the state's $15 billion Medicaid program under a proposal that took the North Carolina House and Senate more than two years to agree on.

Under North Carolina House Bill 372, three health insurers will be given contracts to offer statewide Medicaid managed care plans, and North Carolina will have contracts with up to 10 provider-led entities that will enroll patients in regional managed care networks.

Sen. Ralph Hise (R-Spruce Pine) said privatizing the state's Medicaid program will allow North Carolina to control Medicaid spending growth, according to a Charlotte Observer report.

Instead of paying for each hospital visit or medical procedure as it does now, the state's Medicaid program would pay each insurer a flat fee per patient they cover.

The changes to North Carolina's Medicaid program will not take effect immediately, as the state will have to get approval from the federal government to modify its Medicaid program.

Both the North Carolina House and Senate plan to take votes on the compromise bill Sept. 22.

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