NORTH CAROLINA GENERAL ASSEMBLY
1965 SESSION

CHAPTER 1173
SENATE BILL 445

AN ACT TO PROVIDE FOR THE ESTABLISHMENT OF A PROGRAM OF MEDICAL ASSISTANCE IN NORTH CAROLINA.

WHEREAS, legislation is now pending in the Congress of the United States which will create under the Federal Social Security Act a single program of grants for medical assistance to states to replace the various programs now authorized under that Act; and
WHEREAS, statutory authority will be necessary if the pending legislation is enacted into law, to enable North Carolina to continue to provide hospitalization and other medical services to indigent persons: Now, therefore,

The General Assembly of North Carolina do enact:

Section 1.  Parts 4, 4A, and 4B of Article 3 of Chapter 108 of the General Statutes are hereby repealed, and the following substituted therefor:
"Part 4. Medical Assistance
"Section 108-73.13.  State Fund for Medical Assistance Created. For the purpose of providing medical assistance and for the administration of an effective medical assistance program in North Carolina, the State Board of Public Welfare is hereby authorized and empowered to establish from federal, State and county appropriations available for the purpose a fund to be known as the State Fund for Medical Assistance, and to adopt rules and regulations under which payments are to be made out of said *und in accordance with the provisions of this part. The nonfederal share may be divided between the State and the counties, in a manner consistent with the provisions of the Federal Social Security Act, except that the share allocated to the counties may not exceed the share allocated to the State. If a portion of the nonfederal share is allocated to the counties, the boards of county commissioners of the several counties shall levy, impose and collect the taxes required for the special purpose of medical assistance as provided in this part, in an amount sufficient to cover each county's share of medical assistance.
"Section 108-73.14.  Payments. From the Fund established herein, the State Board of Public Welfare may, within appropriations made for this specific purpose, pay or cause to be paid all or part of the cost of medical and other remedial care for any eligible person, when it is essential to the health and welfare of such person that such care be provided, and when the total resources of such person are not sufficient to provide the necessary care. Payments for the cost of hospitalization, including in-patient and out-patient services, shall be made only to hospitals licensed by the North Carolina Medical Care Commission, or licensed or approved according to the laws of another state.
"Section 108-73.15.  Acceptance of Federal Grants. All of the provisions of the Federal Social Security Act, as amended, providing grants to the states for medical assistance, are hereby accepted and adopted, and the provisions of this Article shall be liberally construed in relation to the said Federal Social Security Act, so that the intent to comply therewith shall be made effectual. Nothing in this part or the regulations made pursuant hereto shall be construed to deprive a recipient of assistance of the right to choose the licensed provider of the care or service made available under this part within the provision of the Federal Social Security Law.
Sec. 2.  In the event that this Act becomes effective during the biennium beginning July 1, 1965, in accordance with the provisions of Section 4 of this Act, the appropriations in the Biennial Appropriations Act made for the hospitalization and other care of assistance recipients, hospitalization and other care of the medically indigent, and medical assistance for the aged shall be, with the approval of the Governor and the Advisory Budget Commission, transferred to a new appropriation to effectuate the provisions of this Act, and the Governor and Advisory Budget Commission are hereby authorized to do whatever is necessary to this end.
Sec. 3.  All laws and clauses of laws in conflict with this Act are hereby repealed.
Sec. 4.  This Act shall become effective only in the event that the Federal Social Security Act is amended by Congress to provide a program of grants to states for medical assistance, and shall then only become effective upon the adoption of rules and regulations by the State Board of Public Welfare pursuant to this Act, approved by the Governor and the Advisory Budget Commission.
In the General Assembly read three times and ratified, this the 17th day of June, 1965.