Criteria for Prepaid Health Plan Contract Procurement.

HB 558 updates how North Carolina selects Medicaid health plans by limiting statewide contracts to four and allowing up to 12 regional contracts through local health providers. It requires the state to prioritize bids from local providers and those with high provider satisfaction scores from existing contracts. The bill also mandates staggered contract terms (3-5 years) to prevent coverage gaps during transitions. These changes directly affect Medicaid health plan contractors and the Division of Health Benefits, aiming to stabilize coverage and improve provider relationships.