Legislative Update: House Moves to Pass Budget

The NC House has put together their budget proposal that includes a number of revisions requested by the NCMS.  The House budget still includes a 2 percent cut to physician and other provider services that can be earned back later in the year.  The details for such an earn-back process are left to the Department of Health and Human Services (DHHS) to develop in collaboration with provider groups. 

NCMS continues to advocate for a true shared savings solution, modeled after the Medicare shared savings programs already in place with a variety of physician-led accountable care organizations (ACO) across the state.  We believe that our current physician-led efforts to manage utilization and care for the “whole patient” is smarter, faster and cheaper, and would be bolstered by the inclusion of these ACO groups.  This is an essential element to achieving the vision outlined by Governor McCrory for a healthier North Carolina, as well as one of the initiatives outlined in the NCMS response to the recent RFI by DHHS.

The House is scheduled to vote on the budget today and tomorrow.  At that point, the proposed budget will go into conference.  During conference, leaders from each of the chambers will find compromises on the differences between the Senate and House proposals.  We expect that this process could take one to two weeks.  In the coming days, NCMS will be providing you with details on the proposed compromises and how any changes may help you continue to care for Medicaid patients. We will be sending an Action Alert, asking you to contact your legislator to explain just how the changes will affect you and your patients. Your input with legislators is crucial to our success. Watch your email closely over the next few weeks for information on when to contact your elected officials.

The House also passed their Tax Simplification and Reduction Act (H998) on Monday. The Senate is expected to vote today on the tax bill, with a conference to follow. Watch our website for more information on how the tax reform proposals may affect you and your practice as the conference progresses.


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