House committee substitute to the 1st edition makes the following changes. 
Clarifies that the Department of Health and Human Services, Division of Health Benefits (DHB) must continue to implement its policy changes to suspend, rather than terminate, Medicaid benefits upon a Medicaid beneficiary's incarceration, (was, update Medicaid policy to implement the federal directive to suspend rather than terminate Medicaid coverage upon a Medicaid recipient's incarceration). Instead of requiring DHB and the Department of Adult Correction to enter into a memorandum of understanding to share information regarding the Medicaid eligibility status of individuals entering confinement or being released from jails, now requires DHHS, by October 1, 2025, to report to the specified NCGA committee and division on: (1) DHHS' progress in implementing the automated process in the NCFAST eligibility information system that allows data sharing between county jails and DHHS, and (2) any ongoing challenges to meeting the federal requirement to suspend, rather than terminate Medicaid benefits upon a beneficiary's incarceration. Removes the requirement for the Department of Adult Correction to update its internal and external policies and manuals to reflect the updated policy and its implementation.