North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S448 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-S 1
4-SENATE BILL 448
3+S D
4+SENATE BILL DRS45224-NLa-14A
5+
56
67
78 Short Title: Remove Employment Barriers/Ppl w Disabilities. (Public)
89 Sponsors: Senators Lee and Grafstein (Primary Sponsors).
9-Referred to: Rules and Operations of the Senate
10-March 25, 2025
11-*S448 -v-1*
10+Referred to:
11+
12+*DRS45224 -NLa-14A*
1213 A BILL TO BE ENTITLED 1
1314 AN ACT TO REMOVE BARRIERS TO EMPLOYMENT FOR PEOPLE WITH 2
1415 DISABILITIES BY REMOVING THE UNEARNED INCOME LIMIT AND THE 3
1516 RESOURCE LIMIT FROM THE HEALTH COVERAGE FOR WORKERS WITH 4
1617 DISABILITIES ACT UNDER THE MEDICAID PROGRAM. 5
1718 The General Assembly of North Carolina enacts: 6
1819 SECTION 1. No later than 90 days after this act becomes law, the Department of 7
1920 Health and Human Services, Division of Health Benefits, shall submit the necessary 8
2021 documentation to the Centers for Medicare and Medicaid Services (CMS) for approval to remove 9
2122 the unearned income limit and the resource limit from the eligibility requirements for the Health 10
2223 Coverage for Workers with Disabilities Medicaid eligibility category. Upon approval by CMS 11
2324 of the removal of the unearned income and resource limits, the Secretary of the Department of 12
2425 Health and Human Services shall notify the Revisor of Statutes of the effective date approved by 13
2526 CMS for the removal. 14
2627 SECTION 2.(a) G.S. 108A-66.1 reads as rewritten: 15
2728 "§ 108A-66.1. Medicaid buy-in for workers with disabilities. 16
2829 (a) Title. – This section may be cited as the Health Coverage for Workers With 17
2930 Disabilities Act. The Department shall implement a Medicaid buy-in eligibility category as 18
3031 permitted under P.L. 106-170, Ticket to Work and Work Incentives Improvement Act of 1999. 19
3132 The Department shall establish rules, policies, and procedures to implement this act in 20
3233 accordance with this section. 21
3334 … 22
3435 (c) Eligibility. – An Except as provided in subsection (c1) of this section, an individual 23
3536 is eligible for HCWD if:if all of the following apply: 24
3637 (1) The individual is at least 16 years of age and is less than 65 years of age;age. 25
3738 (2) The individual either meets Social Security Disability criteria, criteria or the 26
3839 individual has been enrolled in HCWD and then becomes medically improved 27
3940 improved, as defined in Ticket to Work and as further specified by the 28
4041 Department. An individual shall be determined to be eligible under this 29
4142 section without regard to the individual's ability to engage in, or actual 30
4243 engagement in, substantial gainful activity as defined in section 223 of the 31
4344 Social Security Act (42 U.S.C. § 423(d)(4)). In conducting annual 32
4445 redetermination of eligibility, the Department may not determine that an 33
4546 individual participating in HCWD is no longer disabled based solely on the 34
46-individual's participation in employment or earned income;income. 35 General Assembly Of North Carolina Session 2025
47-Page 2 Senate Bill 448-First Edition
47+individual's participation in employment or earned income;income. 35
48+FILED SENATE
49+Mar 24, 2025
50+S.B. 448
51+PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
52+Page 2 DRS45224-NLa-14A
4853 (3) The individual's unearned income does not exceed one hundred fifty percent 1
4954 (150%) of FPG, and countable resources for the individual do not exceed the 2
5055 resource limit for the minimum community spouse resource standard under 3
5156 42 U.S.C. § 1396r, and as further determined by the Department. In 4
5257 determining an individual's countable income and resources, the Department 5
5358 may not consider income or resources that are disregarded under the State 6
5459 Medical Assistance Plan's financial methodology, including the 7
5560 sixty-five-dollar ($65.00) disregard, impairment-related work expenses, 8
5661 student earned-income exclusions, and other SSI program work incentive 9
5762 income disregards; and 10
5863 (4) The individual is engaged in a substantial and reasonable work effort 11
5964 (employed) effort, as provided in this subdivision and subdivision, as further 12
6065 defined by the Department Department, and as allowable under federal law. 13
6166 For purposes of this subsection, "engaged in substantial and reasonable work 14
6267 effort" means all of the following: 15
6368 a. Working in a competitive, inclusive work setting, or self-employed. 16
6469 b. Earning at least the applicable minimum wage. 17
6570 c. Having monthly earnings above the SSI basic sixty-five-dollar 18
6671 ($65.00) earned-income disregard. 19
6772 d. Being able to provide evidence of paying applicable Medicare, Social 20
6873 Security, and State and federal income taxes. 21
6974 (c1) Additional Earnings Requirements. – The Department may impose additional 22
7075 earnings requirements in defining "engaged in substantial and reasonable work effort" for 23
7176 individuals who are eligible for HCWD based on medical improvement. 24
7277 (c2) Involuntary Unemployment. – Individuals who participate in HCWD but thereafter 25
7378 become unemployed for involuntary reasons, including health reasons, shall have continued 26
7479 eligibility in HCWD for up to 12 months from the time of involuntary unemployment, so long as 27
7580 the individual (i) maintains a connection with the workforce, as determined by the Department, 28
7681 (ii) meets all other eligibility criteria for HCWD during the period, and (iii) pays applicable fees, 29
7782 premiums, and co-payments. 30
7883 (d) Fees, Premiums, and Co-Payments. – Individuals who participate in HCWD and have 31
7984 countable income greater than one hundred fifty percent (150%) of FPG shall pay an annual 32
8085 enrollment fee of fifty dollars ($50.00) to their county department of social services. Individuals 33
8186 who participate in HCWD and have countable income greater than or equal to two hundred 34
8287 percent (200%) of FPG shall pay a monthly premium in addition to the annual fee. The 35
8388 Department shall set a sliding scale for premiums, which is consistent with applicable federal 36
8489 law. An individual with countable income equal to or greater than four hundred fifty percent 37
8590 (450%) of FPG shall pay not less than one hundred percent (100%) of the cost of the premium, 38
8691 as determined by the Department. The premium shall be based on the experience of all 39
8792 individuals participating in the Medical Assistance Program. Individuals who participate in 40
8893 HCWD are subject to co-payments equal to those required under the Medical Assistance 41
8994 Program. 42
9095 (e) Countable Income. – In determining an individual's countable income, the 43
9196 Department may not consider income that is disregarded under the State Medical Assistance 44
9297 Plan's financial methodology, including the sixty-five dollar ($65.00) disregard, 45
9398 impairment-related work expenses, student earned-income exclusions, and other SSI program 46
9499 work incentive income disregards." 47
95100 SECTION 2.(b) This section is effective on the date approved by the Centers for 48
96101 Medicare and Medicaid Services for the removal of the unearned income and resource limits for 49
97102 Health Coverage for Workers with Disabilities program eligibility, as required by Section 1 of 50
98103 this act. 51 General Assembly Of North Carolina Session 2025
99-Senate Bill 448-First Edition Page 3
104+DRS45224-NLa-14A Page 3
100105 SECTION 3. Effective July 1, 2025, there is appropriated from the General Fund to 1
101106 the Department of Health and Human Services, Division of Health Benefits, the sum of one 2
102107 hundred sixty-five thousand dollars ($165,000) in recurring funds for each year of the 2025-2027 3
103108 fiscal biennium. These funds shall provide a State match for three hundred one thousand dollars 4
104109 ($301,000) in recurring federal funds for each year of the 2025-2027 fiscal biennium, and those 5
105110 federal funds are appropriated to the Division of Health Benefits. 6
106111 SECTION 4. Except as otherwise provided, this act is effective when it becomes 7
107112 law. 8