SB 160/HB 176 – Enhance SHP Debt Collection Abilities
Primary Senate Sponsors: Sen. Joyce Krawiec (R-Davie, Forsyth); Rep. Jim Burgin (R-Harnett, Johnston, Lee); Rep. Jim Perry (R-Lenoir, Wayne)
Primary House Sponsors: Rep. Donny Lambeth (R-Forsyth); Rep. Allen McNeill (R-Moore, Randolph); Rep. Pat Hurley (R-Randolph)
Summary
This bill enacts new provisions related to the North Carolina State Health Plan and the Plan’s ability to collect overpayments and unpaid premiums. Specifically, this bill:
- Applies to individuals no longer employed by an employing unit and to whom either (1) an overpayment/erroneous payment of benefits, claims, or other amount has been paid on behalf of the individual/the individual’s dependents by the Plan and the amount owed has not been repaid or (2) unpaid premiums are owed by the individual for coverage provided by the Plan to the individual/individual’s dependents.
- Requires 30 days’ notice of the amounts owed to provide an opportunity for the individual to repay the amounts or enter into an approved payment plan.
- Deems intangible property (defined to include bank deposits, rents, salaries, wages, property held in the Escheat Fund, and any other property incapable of manual levy or delivery) subject to attachment and garnishment.
- Requires repayment to the Plan for any payments of claims to a provider later determined to be an overpayment, an erroneous payment, or an ineligible amount despite any agreement between a Claims Processor and the provider.
- Deems the Claims Processor who paid the amounts owed to the Plan responsible for recovering the amounts owed using all commercially reasonable mechanisms.
- Prohibits the Claims Processor from forgiving any amount due under the statute.
Movement
SB 160
Filed – 2/25/2021
HB 176
Filed – 2/25/2021