A BILL TO BE ENTITLED
AN ACT TO PHASE OUT THE COUNTY SHARE OF THE NONFEDERAL SHARE OF MEDICAID COSTS OVER A FIVE‑YEAR PERIOD AND TO PROVIDE IMMEDIATE RELIEF FOR TIER ONE COUNTIES.
The General Assembly of North Carolina enacts:
SECTION 1.  Notwithstanding any other provision of law to the contrary, the nonfederal share of the Medical Assistance Program costs, excluding administrative costs, paid by the counties shall be reduced as follows:
(1)	Effective July 1, 2004, the county share of Medicaid costs paid by Tier 1 counties shall be reduced by six percent (6%).
(2)	Effective July 1, 2005, the county share of Medicaid costs paid by Tier 1 counties shall be further reduced by three percent (3%). 
(3)	Effective July 1, 2005, the county share of Medicaid costs paid by all counties other than Tier 1 counties shall be reduced by three percent (3%) per year until July 1, 2009, when the county share for all counties, including Tier 1 counties, shall be zero percent (0%).
(4)	Effective July 1, 2008, the county share of Medicaid costs paid by Tier 1 counties shall be further reduced by three percent (3%) per year until the Tier 1 county nonfederal share is zero percent (0%).
Effective July 1, 2009, the total nonfederal share of the Medical Assistance Program, excluding administrative costs, shall be borne by the State.
SECTION 2.  Effective July 1, 2009, 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 3.  This act becomes effective July 1, 2004.