North Carolina
In effectHouse Bill 696 became Session Law 2026-1, rewriting who may enroll, who may supervise, and how much of that supervision can happen over telehealth.
Effective
April 30, 2026
Public comment closes July 20, 2026
The draft rewrite of Clinical Coverage Policy 8F is in a shortened 10-day comment period that ends July 20, 2026. It still conflicts with the statute on reauthorization frequency, so provider comment is unusually consequential this round. Comments go to medicaid.public.comment@dhhs.nc.gov. Note that submissions may be treated as public record, and NC Medicaid states you may comment without providing identifying information.
What changed
Out-of-state BCBAs may no longer enroll as Medicaid providers
New G.S. 108C-9(e) bars Board Certified Behavior Analysts and Qualified Autism Services Practitioner Supervisors from enrolling as out-of-state providers. Two limits are widely missed: this is an enrollment bar, not a practice or licensure ban, and it applies only to applications submitted on or after April 30, 2026 — it does not speak to analysts already enrolled. NC Medicaid also defines an out-of-state provider as one located more than 40 miles beyond the state border, so clinicians inside that 40-mile band are border providers and are not covered by this bar.
Telehealth supervision of code 97155 capped at 50%
The statute limits supervisor observation and direction of a paraprofessional delivered by telehealth to no more than half of that supervisor's services for any single recipient. The draft policy maps this to CPT 97155 and sets the ceiling at 50% of billing per beneficiary — raised from the 20% figure in the earlier draft. The state may grant exceptions for documented medical necessity or access problems, explicitly including poor provider availability in rural and underserved areas.
Reauthorization frequency is unresolved between statute and draft policy
For treatment plans exceeding 16 hours per week, the enacted statute requires the plan to be updated and reapproved monthly. The draft policy instead requires reauthorization at least every 90 calendar days — and then contradicts itself, restating the monthly requirement in a later section. Until the final policy publishes, plan against the monthly statutory language rather than the quarterly draft language.
In-person requirements added for assessment and paraprofessional services
Supervisor assessments conducted by telehealth are not reimbursable. Paraprofessional services delivered by telehealth are barred outright, subject to the state's exception process. Caregiver training is the exception in the other direction — it may be delivered entirely by telehealth with no in-person component.
New supervision floors and service ratios
At least 10% of paraprofessional services must involve supervisor observation and direction. Separately, supervisor services must fall between 10% and 20% of a beneficiary's total, measured over six months, and this ratio applies only to beneficiaries receiving more than 200 paraprofessional hours in that period. Exceeding 20% remains reimbursable with documented medical necessity.
Paraprofessional credentialing changed in both directions
Paraprofessionals must hold RBT or ABAT certification after a 120-day grace period from date of hire, but are exempt from Medicaid credentialing itself.
Three-tier enforcement, escalating to billing suspension
First and second findings of noncompliance draw recoupment. A third occurrence of noncompliance found to be material and systematic can suspend billing privileges for one to two years.
Who this hits
Clinics that built supervision capacity around remote BCBAs located more than 40 miles outside North Carolina, and any clinic running high-hour cases where a monthly-versus-quarterly reauthorization difference determines how many weeks per year are billable. Rural programs are the ones most likely to need the telehealth exception process. The state projects Medicaid spending on this service will reach roughly $1.14 billion in SFY2027, which began July 1, 2026 — that projection is the pressure behind these rules.
Sources
Verified July 18, 2026
- StatuteSession Law 2026-1, Sec. 3C.18 (House Bill 696) — enacted text
- StatuteN.C.G.S. 108C-9 — provider enrollment, as amended
- AgencyNC Medicaid — proposed policies open for public comment (draft CCP-8F, comment closes 07/20/2026)
- AgencyNC Medicaid — out-of-state provider enrollment (defines the 40-mile border rule)
- AgencyNCDHHS presentation to the Joint Legislative Oversight Committee on Medicaid, March 10, 2026 (spending projections)