Governor Stein Reinstates Medicaid Reimbursement Rates Amid Legislative Gridlock
In a decisive move, Governor Josh Stein has instructed the North Carolina Department of Health and Human Services (NCDHHS) to restore Medicaid reimbursement rates to their status before October 2025. This decision comes after the legislature’s failure to fully fund the Medicaid program led to rate cuts, igniting a series of legal battles against the state. Recent court rulings have now made it unsustainable to continue with the reduced rates.
“North Carolinians who rely on Medicaid are suffering because the General Assembly has failed to fully fund the program,” said Governor Josh Stein. With the restoration of these rates, Governor Stein emphasizes the importance of legislative action to address the remaining $319 million funding gap to protect healthcare access for over 3 million residents.
NCDHHS Secretary Dev Sangvai echoed these concerns, stating, “We need the General Assembly to fully fund Medicaid. Underfunding a program this critical and putting it at risk is not something we can take lightly. Medicaid is a lifeline for 3 million North Carolinians, and ongoing uncertainty threatens the health of our entire state.”
North Carolina is currently the only state without an enacted budget, and NCDHHS has been vocal about the legislature’s underfunding of Medicaid by several hundred million dollars. This shortfall, unless addressed by legislative measures, could deplete Medicaid’s resources before the fiscal year’s end, endangering healthcare for millions.
Healthcare Community Supports Governor’s Action
Healthcare providers and advocates across North Carolina have expressed their support for Governor Stein’s decision, urging the legislature to ensure full Medicaid funding:
Josh Dobson, President & CEO of North Carolina Healthcare Association, remarked, “We thank Governor Stein for reversing Medicaid reimbursement cuts — an encouraging step toward stability for providers and the patients who depend on them.”
Theresa McCarthy Flynn, MD, President of the NC Pediatric Society, highlighted the importance of the move for pediatric care: “This action is critical for pediatricians across our state. These cuts posed serious challenges, threatening the ability of many practices to keep their doors open.”
Clarice Grote of the NC Occupational Therapy Association expressed gratitude, emphasizing the significance of Medicaid for occupational therapy services.
Sara Howe, CEO of Addiction Professionals of North Carolina, called the rate restoration a “lifesaving decision,” essential for maintaining substance-use treatment services.
Dr. Scott Klenzak of the North Carolina Psychiatric Association underscored the impact on mental health care, while David Laxton from the Autism Society of NC highlighted the benefits for those with autism reliant on Medicaid.
G. Peyton Maynard of the Developmental Disabilities Facilities Association and Shannon McCarson of BAYADA Home Health Care reiterated the need for sustainable Medicaid funding to support essential services.
Leaders across various healthcare sectors, including Karen McLeod of Benchmarks, Bonnie Davis Meadows of NCNA, and Dr. Shelley Olson of the NC Dental Society, have all expressed their appreciation for the Governor’s actions and their dedication to working with the legislature to secure a fully funded Medicaid program.
Tim Rogers of The Association for Home & Hospice Care of North Carolina and Chris Shank of the North Carolina Community Health Center Association also praised the Governor’s leadership in restoring Medicaid reimbursement, with a shared focus on future collaboration for strengthening Medicaid.
Dr. Benjamin “Frankie” Simmons of the NC Academy of Family Physicians and Carl Westcott of the North Carolina Medical Society joined in calling for adequate Medicaid funding to ensure quality healthcare access across the state.
The NC Association of Health Plans and the NC Association of Public Community Health Plans have committed to collaborating with state leaders to maintain a robust Medicaid program, emphasizing access, quality, and healthcare innovation.
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