RALEIGH: NC officials scrap new Medicaid assessment - WNCN: News, Weather

NC officials scrap new Medicaid assessment

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RALEIGH, N.C. -

North Carolina officials are backing off plans to tax certain mental health treatment administrators to draw down more Medicaid money from Washington.

That means the General Assembly must locate $60 million in savings elsewhere.

Gov. Pat McCrory's budget and the Senate spending proposal for fiscal 2015 would have directed what are called local management entities to pay a 3.5 percent assessment on services. The assessment is already required of hospitals and helps bring in more Medicaid dollars.

McCrory said Tuesday that's not an option anymore after his administration received guidance from federal regulators last week. A federal inspector general's report also says a similar managed-care tax for Medicaid in Pennsylvania appears impermissible.

House budget committee chairman Rep. Nelson Dollar of Cary says budget-writers are finding ways to fill the hole.

Copyright 2014 The Associated Press. All rights reserved.

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