Raleigh, NC – The North Carolina Senate approved the Healthcare Investment Act, also known as House Bill 562, securing significant funding for Medicaid and the state’s children’s hospital system. While the Senate passed the measure, the House of Representatives is expected to focus on a Medicaid-only proposal.
Lawmakers Highlight Rural Health Care Needs
Republican State Senator Mike Lee, who represents the Wilmington area, emphasized the importance of accessible children’s hospital care. Having relied on Cincinnati Children’s Hospital Medical Center for his child for more than 15 years, Lee contrasted the availability of care in urban areas with neighboring rural counties like Brunswick, Pender, Columbus, Bladen, Sampson, and Duplin, which lack specialized pediatric care.
“If you want to understand why a children’s hospital is necessary in North Carolina, talk to me after this meeting,” Lee told colleagues in the Appropriations Base Budget Committee.
Senate Bill Details
The legislation, updated from its original March filing, includes:
- $90 million in new Medicaid funding, on top of a recurring $690 million.
- Savings of $34 million from eliminating vacant positions at the Department of Health and Human Services.
- $76.6 million allocated to administration costs, with $42.2 million recurring.
- $1 million for the State Auditor’s Office, led by Republican Dave Boliek, to oversee Medicaid eligibility redeterminations.
The bill also establishes a freestanding children’s hospital and continues support for NC Cares, as reported. This legislation provides the final $103.5 million of the roughly $320 million commitment to the North Carolina Children’s Hospital, while NC Cares projects receive $105 million to complete a $420 million statewide initiative.
Republican Support and Political Context
Republicans argue the bill prevents “unprecedented rate cuts” by the State Health Department. Senate President Pro Tempore Phil Berger, R-Rockingham, described Governor Josh Stein’s actions as politically motivated.
Sen. Brent Jackson, R-Sampson, chairman of the Committee on Appropriations, said:
“If the department and the governor expect the General Assembly to continue funding the program, they must identify savings and evaluate its performance.”
Commitment to Statewide Health Care
Sen. Lee stressed the importance of supporting rural communities:
“In 2023, we committed to spending money to benefit citizens across the state, not just major metropolitan areas, through the NC Cares program.”
How do you feel about the state’s investment in Medicaid and children’s hospitals? Share your thoughts and experiences in the comments below!
