NC Gov. Stein Restores Medicaid Rates Amid Budget Battles

North Carolina Gov. Josh Stein is reversing course on controversial Medicaid reimbursement cuts, a vital move designed to protect healthcare access for the state’s most vulnerable residents amid a tense standoff with Republican lawmakers.

Stein and Department of Health and Human Services Secretary Dr. Dev Sangvai announced Wednesday that reimbursement rates for doctors, hospitals, and medical providers will be fully restored. The administration initially implemented reductions ranging from 3% to 10% on Oct. 1 to manage a projected budget shortfall, a decision that sparked immediate concern across the state.

However, recent legal challenges forced the administration’s hand. Courts ruled that maintaining the reductions was untenable, siding with providers who argued the cuts violated state laws. The reversal serves as a critical lifeline for the more than 3 million North Carolinians who rely on Medicaid, including families seeking autism services and residents in adult care homes who could not afford a disruption in care.

“What has not changed is the program doesn’t have enough money,” Stein said in an interview with the Associated Press. “What has changed is that the courts have made very clear that the rates have to go back.”

The financial outlook remains precarious for the community’s healthcare safety net. Without legislative intervention, Medicaid funds are projected to run dry by spring. The shortfall stems from the General Assembly’s failure to pass a comprehensive two-year budget, leaving a gap of more than $300 million needed to cover rising healthcare costs and population growth.

Despite Stein’s urgent calls for a special session to address the funding crisis, legislative leaders declined to convene. The lack of a verified budget continues to threaten the stability of essential services that many diverse families depend on daily.

Stein emphasized that the ultimate solution lies with the General Assembly.

“If the legislature would simply do its job and pass a budget that fully funded Medicaid, we never would have had to start this entire enterprise,” Stein said to AP.

NC Gov. Stein Restores Medicaid Rates Amid Budget Battles was originally published on thelightnc.com