Dear NCCA Members,
As we continue monitoring North Carolina policy developments affecting counselors, clients, and behavioral health systems, there are several important updates to keep on your radar.
INFO TO KNOW:
H.B. 696 — Medicaid & HHS Adjust./Other Critical Needs
H.B. 696 is now Session Law 2026-1, meaning this is enacted law rather than pending legislation.
Beginning October 1, 2026, North Carolina implemented several Medicaid eligibility changes, including:
• limits on using self-attestation as the sole evidence for eligibility;
• changes related to reporting and verification of beneficiary circumstances;
• immigration-status verification provisions; and
• changes affecting household-income determinations.
For mental health providers, the primary concern is coverage continuity rather than scope of practice. These provisions do not directly change psychotherapy practice standards or behavioral health reimbursement rates. However, increased verification requirements may create coverage disruptions for some beneficiaries, which could affect continuity of mental health treatment and access to care.
Providers may want to pay particular attention to clients who report Medicaid renewal problems, eligibility questions, unexpected coverage termination, or interruptions in authorization for services.
H.B. 696 — NC General Assembly:
BILLS TO KEEP ON YOUR RADAR
S.B. 838 — The Frontline Mental Health Support Act
Status: Senate Appropriations/Base Budget
This proposal would establish confidential mental health services for teachers and first responders and includes behavioral health workforce provisions that prioritize licensed clinical social workers and licensed clinical mental health counselors within a proposed grant program.
S.B. 949 — Fully Fund School Psychologists & Counselors
Status: Senate Appropriations/Base Budget
This legislation focuses on strengthening school mental health staffing by providing additional support for school psychologists and school counselors.
H.B. 1044 — Justice in Mental Health Act
Status: House Rules
This bill remains in the House Rules Committee and has not advanced since its April referral. We will continue monitoring it for movement.
CALL TO ACTION
North Carolina counselors can help keep behavioral health access visible by:
• reviewing legislation that affects counseling access, behavioral health funding, Medicaid, schools, and workforce capacity;
• contacting legislators when bills directly affect your clients, profession, or community;
• documenting how coverage disruptions or workforce shortages affect continuity of care; and
• sharing emerging policy concerns with NCCA Government Relations.
Advocacy does not begin only when legislation reaches the floor. Committee review, budget development, rulemaking, and implementation are all opportunities for counselors to bring practical clinical experience into the policy conversation.
Not sure who to contact? Put your home address into this site and it will give you the information you need.
We will continue monitoring these developments and share additional updates when meaningful legislative or regulatory action occurs.
Whitney Gatling, MS, LCMHCS
Member at Large – Government Relations
North Carolina Counseling Association