N.C. governor reverses Medicaid rate cuts
North Carolina Gov. Josh Stein and DHHS Sec. Dr. Dev Sangvai said Dec. 10 the state will restore Medicaid reimbursement rates—reversing 3%–10% cuts that began Oct. 1—after court rulings and lawsuits blocked portions of the reductions. The move includes retroactive reimbursements to providers, but a $319 million shortfall remains amid a stalled state budget and failed GOP-led efforts to pass supplemental funding.
📌 Key Facts
- Stein cancels 3%–10% Medicaid provider rate cuts that took effect Oct. 1, 2025.
- Providers will receive retroactive payments for the difference since the cuts began.
- State cites a $319M funding gap tied to the lack of an enacted two-year budget.
- Courts sided with Medicaid consumers and providers challenging the unilateral cuts.
- Republican leaders Destin Hall and Phil Berger declined to convene a special session.
📊 Relevant Data
In North Carolina in 2023, Black individuals comprise 39.3% of Medicaid enrollees ages 0-64, while representing approximately 20% of the state's total population in 2020.
Distribution of People Ages 0-64 with Medicaid by Race/Ethnicity — KFF
In North Carolina in 2023, White individuals comprise 41.3% of Medicaid enrollees ages 0-64, while representing approximately 61% of the state's total population in 2020.
Distribution of People Ages 0-64 with Medicaid by Race/Ethnicity — KFF
In North Carolina in 2023, Hispanic individuals comprise 11.4% of Medicaid enrollees ages 0-64, similar to their 11% share of the state's total population in 2020.
Distribution of People Ages 0-64 with Medicaid by Race/Ethnicity — KFF
Migration from other states and abroad accounted for 95% of North Carolina's population growth between 2020 and 2023, contributing to increased demand on services like Medicaid.
Shaping North Carolina’s Future with Jim Johnson — Kenan Institute
In 2023, the rate of forgone health care due to cost was 12.7% for Black adults and 20.1% for Hispanic/Latino adults in North Carolina, statistically significantly higher than for White adults.
Exploring Racial Disparities in Forgone Health Care Using State Health Compare — SHADAC