State lawmakers raised concerns this morning as they learned details of a plan to “cap” county governments’ Medicaid costs.

You might remember that the N.C. General Assembly approved $27.4 million this year to cover projected increases in local governments’ Medicaid bills. Now some lawmakers worry that the law that sets that money aside won’t meet their objectives.

At a meeting of the N.C. House Select Committee on Health Care, the deputy director of the N.C. Association of County Commissioners outlined the program.

Lawmakers were surprised to hear that counties could start drawing the funds as soon as they reached their 2005-2006 Medicaid spending levels. In theory, one large county with especially large Medicaid expenses could eat up the entire $27.4 million before the other 99 counties reached the money.

Legislator after legislator complained that was not their intent. They wanted the money doled out to all 100 counties. The committee agreed to send the issue to the joint Legislative Committee on Governmental Operations. Some lawmakers want that committee to direct the appropriate state agency to change the program. A legislative lawyer warned the lawmakers that the change would likely require new legislation.

While the current program surprised most members of the House committee, Chad tells me there’s no surprise among county leaders. He tells me some counties are already planning ways to “get their share,” including plans to speed their way through Medicaid expenses early in the budget year.