A BILL TO BE ENTITLED
AN ACT TO DIRECT THE Department of Health and Human Services TO TAKE CERTAIN ACTIONS TO REDUCE OVEREXPENDITURES IN COMMUNITY SUPPORT SERVICES AND TO REALLOCATE SAVINGS REALIZED FROM THE REDUCTION; and to prOVIDE THAT the Department of Health and Human Services SHALL NOT consolidatE local management entities.
Whereas, Since 2006, the General Assembly has appropriated funds for community support services under the Medicaid and Mental Health, Developmental Disabilities, and Substance Abuse Services programs; and
Whereas, the original budget for community supports was $299,700,000; and
Whereas, in the 2007‑2008 fiscal year DHHS is overbudget in its community supports funding by $508,000,000; and
Whereas, cost overruns for community supports must be contained in order to provide funding for other essential Medicaid and mental health, developmental disabilities, and substance abuse services; and
Whereas, the General Assembly should restrict funds for community support services to the amount originally budgeted for these services and should reallocate the overbudgeted amount for other purposes; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.(a)  Not later than July 1, 2008, the Department of Health and Human Services shall adopt procedures to restrict community support services only to those individuals whose health condition would cause them to be institutionalized or reinstitutionalized if community supports are not available to them.  The Department shall further require that as a condition of providing community supports to Medicaid recipients, providers must also provide services to individuals whose services are State‑funded.
SECTION 1.(b)  Savings realized from restrictions on Community Supports under subsection (a) of this section shall be reallocated by the Department of Health and Human Services as follows:
Reduction in community support funding			($154,439,034)
Medicaid inflationary increase			 		 $  42,584,431
CAP‑MR/DD Services			 			 $  10,000,000
Community Health Centers					 $  10,000,000
Rural Health Centers						 $  10,000,000
Fund Recommendations of Joint Legislative Oversight 
	Committee on Mental Health, Developmental 
	Disabilities, and Substance Abuse Services		 $  56,738,394
Funds for NC Association of Free Clinics (HB2077)	 $    2,000,000
Health Care Connection Study					 $    1,000,000
Mental Health Services for Combat Veterans & Families 
	of Combat Veterans					 $    2,200,000
Reimbursement rate for dental services under Medicaid	 $    5,000,000
Rural Hospital Operations and Maintenance			 $    2,000,000
LME Care Coordination Services for Consumers 		 $    5,000,000
Savings realized in accordance with this act that remain after allocations required under this subsection shall not revert to the General Fund but shall remain with the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services or Division of Medical Assistance, as applicable, to be used for other Medicaid or mental health, developmental disabilities, and substance abuse services.
SECTION 2.  Except as later authorized by law, the Department of Health and Human Services shall not consolidate existing local management entities that provide mental health, developmental disabilities, and substance abuse services, except that  local management entities that  have initiated or are considering initiating consolidation may consolidate as provided by law.
SECTION 3.  This act becomes effective July 1, 2008.