Protect NC Medicaid Funding

Medicaid is a health insurance program jointly funded by the state and federal government that covers over three million low-income and disabled North Carolinians. In early August, the NC General Assembly passed a stopgap budget allocating $600 million to Medicaid, leaving a budget shortfall of $319 million. If the legislature does not appropriate additional funds for Medicaid by October 1, this budget shortfall will force the NC Department of Health and Human Services to make devastating cuts to Medicaid services.

Proposed budget cuts include rate cuts to all Medicaid providers, including 8% cuts to rates for primary care and 8–10% cuts to behavioral health care services. Reductions to already-low Medicaid reimbursement rates could force many providers to stop accepting Medicaid, limiting access to essential care. Other pending cuts include reduced funding for cost-effective programs like early intervention services for children with developmental disabilities, care management programs for children and pregnant people, and in-home respite care services.

Furthermore, reduced state Medicaid spending will trigger reductions in federal matching contributions to NC Medicaid, resulting in an overall cut of $1.1 billion to Medicaid funding. The legislature must ensure Medicaid is adequately funded and prevent these catastrophic funding cuts.