Governor Josh Stein has instructed the North Carolina Department of Health and Human Services (NCDHHS) to restore Medicaid reimbursement rates to levels from September 30, 2025. The decision follows court orders that have made it untenable for the state to continue with rate reductions implemented in October after the legislature did not fully fund Medicaid.
“North Carolinians who rely on Medicaid are suffering because the General Assembly has failed to fully fund the program,” said Governor Josh Stein. “NCDHHS 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.”
“We need the General Assembly to fully fund Medicaid,” said NC Health and Human Services Secretary Dev Sangvai. “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 currently does not have an enacted budget, making it unique among U.S. states. NCDHHS had warned that Medicaid was underfunded by hundreds of millions of dollars, which could result in funding being exhausted before the end of the fiscal year unless legislative action occurs.
Health care providers and advocacy groups across North Carolina expressed support for Governor Stein’s move and called on lawmakers to address long-term funding issues:
“We thank Governor Stein for reversing Medicaid reimbursement cuts — an encouraging step toward stability for providers and the patients who depend on them,” said Josh Dobson, President & CEO of North Carolina Healthcare Association. “As Medicaid continues to face financial pressures, we stand ready to work with the Governor and General Assembly on immediate and long-term solutions to strengthen healthcare delivery across North Carolina.”
“On behalf of the 2,300 members of the North Carolina Pediatric Society, I want to express our sincere gratitude to Governor Stein for the decision to temporarily lift the Medicaid rate cuts,” said Theresa McCarthy Flynn, MD, MPH, FAAP, President NC Pediatric Society. “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 and continue serving their patients. We appreciate the Governor and all policymakers who are committed to keeping Medicaid strong for North Carolina families. Today’s step is an important safeguard for children’s health, and we look forward to working collaboratively on a long-term solution—one that ensures stable and adequate funding for the current and future fiscal years. Together, we can build a future where every child in North Carolina has access to the care they need to grow up healthy and thrive.”
“Medicaid recipients of all ages depend on occupational therapy services to support them in their daily lives,” said NC Occupational Therapy Association (NCOTA) Vice President Clarice Grote. “NCOTA is grateful to the Governor for today’s announcement.”
“By reversing Medicaid cuts, Governor Stein has made a lifesaving decision for substance-use providers across North Carolina,” said Sara Howe, CEO of Addiction Professionals of North Carolina. “Keeping funding stable means these clinics and support programs can stay in business — continue offering critical treatment and recovery support— and save lives. This isn’t just budget policy: it’s a real victory for public health, and a statement that our state values caring for people in their greatest hour of need.”
“On behalf of psychiatrists across North Carolina, we applaud the Governor for temporarily lifting the Medicaid rate cuts,” said Scott Klenzak, M.D., D.L.F.A.P.A., President, North Carolina Psychiatric Association. “These reductions would have posed serious challenges to sustaining access to mental health care—a critical need for individuals and families across our state. We deeply appreciate the Governor and all legislators committed to keeping Medicaid strong for North Carolina. We look forward to continuing working with our partners to develop a long-term solution that ensures stable and adequate funding for mental health services in the current and future fiscal years.”
“Eliminating the Medicaid provider rate cuts is an important step for our state. Restoring rates will protect access to care for children and adults with autism and their families who rely on Medicaid services, ensure stability to caregivers for ongoing care and support of their loved ones, and retain the direct support workforce needed to provide quality care. This action will help ensure those living with autism continue t receive services they need to live full and meaningful lives,” said David Laxton, Director of Communications, Autism Society of NC.”We will continue working with legislature,Governer office DHHS new year ensure needs autism community understood critical support services remain available.”
“We are excited about continuing work with Governer Legislature find permanent solution funding medicaid,”said G Peyton Maynard president Developmental Disabilities Facilities Association.”There many challenges lie ahead medicaid program.It one most important programs State government provides healthcare supports millions people critical keep program strong efficient”
“Govenor stein thank you releasing these critical medicaid funds homecare Home Community-Based Services lifeline families In-home caregivers show everyday vulnerable helping remain safe place love most—their own homes vital step but work continues Committed partnering General Assembly fully fund medicaid because families counting us”,said Shannon McCarson Regional Director BAYADA Home Health Care Winston-Salem resident
“The governor has had many difficult decisions lately his efforts protect medicaid”,said Karen McLeod president CEO Benchmarks statewide association representing providers mentalhealth developmental disabilities substance abuse child welfare services very appreciative ongoing commitment northcarolina providers people serve fully support reinstatement Now must continue legislature appropriate full needed whole this fiscal year”
“Fully funding medicaid vital ensuring north carolina patients access quality deserve”,said Bonnie Davis Meadows MSN APRN ACCNS-AG NCNA President Securing sustainability also facilities workforce including nurses
“Viable medicaid reimbursement rates possible dental deliver oral vulnerable communities applaud administration taking reverse recent look forward continuing meaningful increases both child adult dental rates”,said Dr Shelley Olson Dental Society President
“We look forward legislature individuals intellectual developmental disabilities get supports productive lives”,said Lisa Poteat CEO Arc
“On behalf hundreds home hospice tens thousands beneficiaries Association grateful leadership restoring looking forward working Secretary Sangvai leaders ensure reliable accessing”,said Tim Rogers president CEO Association Home Hospice Care
“We thank reversing provider lifting significant strain Community Health Centers protects access 800000 served each year Look forward partnering shared goals strengthening so healthy”,said Chris Shank president CEO Community Center Association
“We appreciate avoid appropriately Access primary lowers cost improves outcomes thats why adequate crucial health”,said Dr Benjamin Frankie Simmons Academy Family Physicians
“Pleased taken steps safeguard medical State Critical look forward working others issue”,said Carl Westcott MD Medical Society president
NC Association Health Plans inc:”Today ensures vital stability providers serve Managed Care Plans committed sustain strong through access quality innovation healthcare communities”
NC Public Community Health Plans:”Association represents four LME/MCOs appreciates commitment protecting individuals families serve value longstanding partnerships General Assembly NCDHHS provider community statewide organizations above people serve Look forward collaborative upcoming session secure sustainable path supports wellbeing communities”
