Rep. Lambeth files bill in North Carolina House to expand Medicaid program to psychiatric hospitals

A new bill filed by State Rep. Donny Lambeth seeks to expand Medicaid support to freestanding psychiatric hospitals through enhanced reimbursement and assessment guidelines, according to the North Carolina State House.

The bill, filed as HB 242 on Feb. 26 during the 2025 regular session, was formally listed with the short title: ‘Add Psychiatric Hospitals to Medicaid HASP.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill seeks to include freestanding psychiatric hospitals in North Carolina’s Medicaid Healthcare Access and Stabilization Program (HASP), allowing them to receive increased reimbursements through augmented hospital assessments. The bill mandates that these psychiatric hospitals be Medicare-certified and provide cost report data to the Centers for Medicare & Medicaid Services (CMS). The Department of Health and Human Services is tasked with requesting approval from CMS to expand the HASP to cover these psychiatric hospitals. The bill also outlines new assessment guidelines for public, private, and freestanding psychiatric hospitals, calculating the assessment percentages quarterly based on hospital costs. These changes aim to enhance financial support and stability for freestanding psychiatric hospitals, effective immediately once the bill is enacted.

Of the four sponsors of this bill, Lambeth proposed the most bills (15) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Lambeth graduated from High Point University in 1972 with a BA.

Lambeth, a Republican, was elected to the North Carolina State House in 2013 to represent the state’s 75th House district, replacing previous state representative Bill McGee.