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North Carolina to Cut Medicaid Payments Next Week as Budget Standoff Persists

The reductions reflect a $319 million gap left after lawmakers broke without a deal.

Overview

  • Gov. Josh Stein said tiered rate cuts will begin the week of Oct. 1 unless lawmakers provide more state funds, though he emphasized the reductions could be reversed.
  • Reductions range from about 3% for home health and ambulance services to roughly 10% for hospitals, nursing homes and hospice care.
  • State officials say Medicaid needs $819 million in state funding this fiscal year but received $600 million, and they do not expect federal dollars to close the shortfall.
  • House and Senate Republicans passed different plans that would add $190 million but adjourned without reconciling them, with disputes centered on funding for a Wake County children's hospital and rural health projects; the next session is set for Oct. 20.
  • Health leaders warn that lower payments could drive providers out of the program and strain access for the 3.1 million North Carolinians covered by Medicaid, while GOP leaders argue the governor could delay the cuts.