Last week, Gov. Josh Stein restored funding for NC Medicaid– the program that helps provide affordable health coverage to over 3 million North Carolinians.
According to Stein, cuts to Medicaid reimbursement rates were triggered as a result of the Republican-led North Carolina General Assembly’s delay on passing a comprehensive state budget. The budget was due by July 1, but Republican legislative leaders have been unable to come to an agreement on a full spending plan.
“North Carolinians who rely on Medicaid are suffering because the General Assembly has failed to fully fund the program,” Stein said. “NC DHHS is restoring rates because the courts have required doing so, but the $319 million funding gap remains. The General Assembly must act to fully fund Medicaid and protect health care for more than 3 million North Carolinians.”
North Carolina is now the last state in the country to not have a budget in place. Stein previously called on lawmakers to return for a special session in November to break the impasse, but his call was rejected by House Speaker Destin Hall and Senate leader Phil Berger. In their response letter, the Republican leaders described the situation as a “trumped-up ‘crisis.’”
Health care advocates describe the Medicaid funding shortfall as a dire situation. The North Carolina Council on Developmental Disabilities surveyed North Carolinians on the impact of Medicaid cuts, and the response was overwhelming.
“The Medicaid cuts in North Carolina are already having a profound impact on individuals with disabilities, their families and the professionals who support them,” wrote the Council. “While some respondents have not yet experienced direct effects, the overwhelming majority report reduced wages, disrupted services and emotional distress.”
Those service disruptions materialized in November. Adult care home operators reported being under significant financial strain, leading to the furloughing or reduction of staff, a reduction of amenities for residents, increased burnout among staff members, delayed maintenance for facilities, and an “imminent risk of closing their doors.”
Other operators noted that due to the cuts, they had stopped taking admissions of residents who arrived as emergency placements from prior living arrangements where they allegedly were abused or neglected.
Gov. Stein has restored Medicaid funding in the short term, but a funding gap remains for 2026 that only the General Assembly can address. Lawmakers will return sometime early next year for their biennial short session. But given the gridlock between Republican leaders in the NC House and Senate, it’s unclear when North Carolina’s funding issues will get resolved.
“For more than 160 days, Republicans have refused to do their job, leaving our health care system in chaos,” Senate Minority Leader Sydney Batch said. “They knew this would happen and still, they chose not to act.”
