The North Carolina General Assembly onSaturday tentatively approved a $20.7 billion budget under which thestate government would absorb counties' share of Medicaid costs inexchange for a portion of counties' sales tax revenue, the Charlotte Observer reports. The Senate approved the budget measure 25-13 and the House 65-53 (Johnson, Charlotte Observer, 7/29).
NorthCarolina is one of a few U.S. states that requires localities tocontribute to Medicaid. In the past 10 years, Medicaid spending hasincreased steeply, and county leaders have been seeking resources topay the bills, according to the Observer.Under the proposal, the state will begin contributing more to Medicaidin 2007 until it eventually funds the full cost of the program by 2009.In exchange, the state would receive half a cent of counties' share ofthe sales tax.
North Carolina Health Insurance
According to the Observer, mostcounties will experience a revenue increase from the deal becauseMedicaid costs have risen so much. Counties that stand to lose moneyfrom the deal will be reimbursed the difference plus $500,000 (Johnson,Charlotte Observer, 7/28).
The budget also callsfor a $20.5 million increase to mental health services and up to $50million toward cancer research. Final approval of the budget is set forMonday (Charlotte Observer, 7/29). \t\t\t\t\t\t
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