Agenda - 03-15-2012 - 1 - Laserfiche WebLink

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3 AGENDA ABSTRACT BACKGROUND Meeting Date: March 15, 2012 Agenda Title: OPC Mental Health, Developmental Disabilities & Substance Abuse Authority - Transition Management Item 1- Resolution Regarding Governance for Consolidated Public Mental Health Entity Operating as a Managed Care Organization Item 2- Healthcare Benefits for OPC Area Authority Retirees Summary of information - Item 1: In February 2011 the Norfh Carolina General Assembly passed legislation which required both implementation of a statewide Medicaid waiver for the public mental health system, as well as consolidation of existing area authorities based on total population. On May 17, 201 1 the Orange County Board of Commissioners voted unanimously to move forward in merger negotiations with PBH, the area authority serving Cabarrus, Davidson, Rowan, Stanly and Union Counties. Since that time Alamance, Caswell, Franklin, Granville, Warren, Vance & Halifax have joined with PBH. On April 1, 2012 the Medicaid waiver will be opened in Orange, Person and Chatham counties, creating what will be at that time a service area of fifteen (15) counties, with a total covered population of 1,442,989. OPC will then move forward in a due diligence process that is expected to lead to the dissolution and subsequent consolidation of OPC into the PBH system on June 30, 2012. In October 2011 PBH hosted a work session with representatives from OPC, Alamance Caswell and Five County to review existing statute regarding governance of public mental health authorities and to consider possible governance options for the new consolidated entity that would be operating as a managed care organization. Under current North Carolina General Statute § 122C-1 18.1 area mental health authorities are governed by Area Boards established by the Boards of Commissioners in each catchment area (see attached). 122C-118.1 indicates that "an area board shall have no fewer than l 1 and no more