North Carolina Sen. Burgin freestanding psychiatric hospital Medicaid reimbursement bill passes House and Senate

Passed bill sponsored by State Sen. Jim Burgin seeks to include freestanding psychiatric hospitals as eligible recipients under the Medicaid Healthcare Access and Stabilization Program and aims to provide increased reimbursements funded through hospital assessments, according to the North Carolina State Senate.

In the House, 12 Democrats and 65 Republicans voted in favor of the bill, while 33 Democrats opposed it.

Meanwhile, in the Senate, 19 Democrats and 28 Republicans voted in favor of the bill.

Burgin filed the bill in the North Carolina Senate on Feb. 26 during the 2025 regular session.

The legislation, known as SB 177, was passed on June 25 during the 2025 regular session.

According to the North Carolina General Assembly site, the bill’s official text 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 aims to include freestanding psychiatric hospitals as eligible recipients under the Medicaid Healthcare Access and Stabilization Program (HASP) by providing these hospitals with increased reimbursements funded through hospital assessments. Freestanding psychiatric hospitals, defined as Medicare-certified facilities primarily offering inpatient psychiatric services and not state-owned or operated, will be assessed a percentage of their hospital costs for this reimbursement, calculated quarterly. The Department of Health and Human Services is tasked with obtaining CMS approval to modify the HASP to accommodate these hospitals. The bill outlines specific financial adjustments and components, such as the modernized freestanding psychiatric hospital HASP component, to manage the funding and distribute payments adequately. This act becomes effective on the first day of the next assessment quarter after becoming law.

The bill was sponsored by Sen. Ralph Hise (Republican-47th District), Sen. Jim Burgin (Republican-12th District), and Sen. Benton G. Sawrey (Republican-10th District).

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.

Burgin graduated from The University of Tennessee Knoxville with a BS.

Burgin, a Republican, was elected to the North Carolina State Senate in 2019 to represent the state’s 12th Senate district, replacing previous state senator Ronald Rabin.

Under North Carolina law, bills must receive three readings in each chamber. According to the UNC School of Government, once a bill “passes its constitutionally required second reading and moves to its constitutionally required third reading,” additional debate can occur, but the final stage is often treated as a formality. Unless a legislator requests a roll-call, the third reading may be approved by voice vote or unanimous consent without a separate recorded tally.