Statement on LME/MCO Assessment in the State Budget | Eastern North Carolina Now

Press Release:

    Raleigh, N.C.     Art Pope, director of the Office of State Budget and Management (OSBM), and Dr. Aldona Wos, secretary of the N.C. Department of Health and Human Services (DHHS), released the following statement:

    "Due to guidance from CMS and the Office of Inspector General's report on Pennsylvania's gross receipts assessment on Medicaid Managed Care Organizations, OSBM and DHHS have decided not to pursue an assessment on LME/MCOs. We are considering additional options at this time and working with the Legislature to achieve savings through other methods."

    Background

   •  On May 14, the Governor's Recommended Budget Adjustments included implementing a 3.5 percent assessment on the LME/MCOs, which would have saved the state approximately $60 million. This provision was also included in the Senate's budget.

   •  On May 28, the federal Department of Health and Human Services' Office of Inspector General (OIG) issued a report on Pennsylvania's assessment on Medicaid Managed Care Organizations, finding that the assessment is not allowable for Medicaid funding purposes.

   •  In the report, the OIG also recommended that the Centers for Medicare & Medicaid Services (CMS) clarify its policy concerning permissible provider assessments.

   •  Since the budget is now in the N.C. House, OSBM and DHHS will work with members of the N.C. House to remove this provision and achieve the savings through other methods.

    Contact: Crystal Feldman