Behavioral Health and Medicaid Modifications

nc-stampHB 403 – Behavioral Health and Medicaid Modifications

Primary Sponsors: Rep. Nelson Dollar (R-Wake), Rep. Donny Lambeth (R- Forsyth), Rep. Josh Dobson (R-Avery), Rep. Donna White (R-Johnston)

*June 15, 2017 Update*

This bill was re-written into a new proposed committee substitute.

Our comments on the bill and objections can be found here.


Section 5 of this bill states the authority of LME/MCOs.

Section 7 of the bill gives the Secretary the ability to approve alternative area board members. Beginning on July 1, 2017, LME/MCOs would be required to submit the following information:

  • (1)        The area board appointment process, the process for filling vacancies on the area board, and the appointing authority for each area board position.
  • (2)        The membership of the area board.
  • (3)        The county of residence of each member.
  • (4)        How the membership composition requirements of subsection (b) of this section are being met.
  • (5)        The term of office of the chair of the area board and each member.
  • (6)        The LME/MCO’s compliance status with training requirements for its board members.
  • (7)        The board’s policies and procedures for conducting the area director’s annual performance review

Section 8 of the bill clarifies that LME/MCOs would only be allowed to use funds related to their responsibilities under this Chapter.

Section 10 of the bill states the role, duties, and salary limitations of an area director. This section also gives the Secretary the power to terminate an area director if their compensation exceeds these limitations. In addition, it requires each area board to submit to the Secretary and the Director of the Office of State Human Resources all employment contracts.


This bill was referred to the House Health Care Reform Committee on March 20, 2017.

A proposed committee substitute received a favorable report on March 29, 2017.

This bill was re-referred to the Committee on Appropriations on March 29, 2017. It was withdrawn from this committee on April 5, 2017.

This bill passed second and third readings in the House on April 6, 2017.

This bill was sent to the Senate.


This bill was referred to the Senate Rules and Operations Committee on April 10, 2017.

This bill was withdrawn from the committee on June 13, 2017.

This bill was re-referred to the Senate Health Care Committee. If it is found favorable there it will move to the Senate Rules and Operations Committee.

A proposed committee substitute that made dramatic changes to the bill received a favorable report in the Senate Health Care Committee on June 15, 2017.

This proposed committee substitute will now move to the Senate Rules and Operations Committee.



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