Governor Stein Continues to Stand Up For 3 Million Medicaid Patients In North Carolina, Directs NCDHHS to Restore Medicaid Rates

Today Governor Stein is directing the North Carolina Department of Health and Human Services (NCDHHS) to restore Medicaid reimbursement rates to September 30, 2025, levels. The legislature's failure to fully fund Medicaid forced cuts to the program in October, and the months-long budget stalemate between the legislative chambers has resulted in a wave of litigation against the state. Recent court orders have now made it untenable to continue with rate reductions.

"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 remains the only state in the country without an enacted budget, and NCDHHS has been warning for months that the legislature left Medicaid underfunded by hundreds of millions of dollars. Court rulings have limited NCDHHS' ability to manage the shortfall responsibly within the current fiscal year. Without legislative action to fill the gap, Medicaid is projected to exhaust its funding before the end of the fiscal year, jeopardizing care for more than 3 million North Carolinians.

North Carolina's providers, health plans, and health care advocates are standing with Governor Stein and urging the legislature to make good on their promise to fully fund Medicaid:

"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 to receive t services they need to live full and meaningful lives," said David Laxton, Director of Communications, Autism Society of NC. "We will continue working with the legislature, Governors office and DHHS in the new year to ensure that the needs of the autism community are understood and critical support services remain available."

"We are excited about continuing to work with the Governor and the Legislature to find a permanent solution for funding Medicaid," said G. Peyton Maynard, President of Developmental Disabilities Facilities Association. "There are many challenges that lie ahead for Medicaid program. It is one of the most important programs in State government. It provides health care and support services for millions of people, and it is critical to keep the program strong and efficient."

"Governor Stein, thank you for releasing these critical Medicaid funds for home care. Home and Community-Based Services are a lifeline for families, and in-home caregivers show up every day for North Carolina's most vulnerable, helping them remain safe in the place they love most-their own homes," said Shannon McCarson, Regional Director, BAYADA Home Health Care, Winston-Salem resident. "This is a vital step, but our work continues. We are committed to partnering with the General Assembly to fully fund Medicaid because families across North Carolina are counting on all of us."

"The Governor has had many difficult decisions lately in his efforts to protect Medicaid," said Karen McLeod, President/CEO of Benchmarks, a statewide association representing Medicaid providers of mental health, developmental disabilities, substance abuse and child welfare services. "We are very appreciative of the Governor's ongoing commitment to North Carolina's Medicaid providers and the people we serve and fully support his decision to reinstate Medicaid rates. Now we must continue to work with the legislature to appropriate the full funding needed to keep the Medicaid budget whole this fiscal year."

"Fully funding Medicaid is vital to ensuring that North Carolina patients have the access to quality care that they need and deserve," said Bonnie Davis Meadows, MSN, APRN, ACCNS-AG, NCNA President. "Securing long term sustainability for this program also ensures stability for health care facilities and the provider workforce, including nurses."

"Viable Medicaid reimbursement rates make it possible for dental providers to deliver quality oral health care to North Carolina's most vulnerable communities," said Dr. Shelley Olson, NC Dental Society President. "We applaud Governor Stein and his administration for taking action to reverse recent rate cuts, and we look forward to continuing our work toward meaningful, long-term increases to both child and adult dental Medicaid rates."

"We look forward to the legislature fully funding Medicaid in the new year so that individuals with intellectual and developmental disabilities get the services and supports they need to live productive lives," said Lisa Poteat, CEO of the Arc of North Carolina.

"On behalf of the hundreds of home care, home health, and hospice providers serving tens of thousands of Medicaid beneficiaries, the Association for Home and Hospice Care of North Carolina is grateful for Governor Stein's leadership in restoring Medicaid reimbursement," said Tim Rogers, President and CEO of The Association for Home & Hospice Care of North Carolina. "We are looking forward to continuing to work with the Governor, Secretary Sangvai, and leaders in the General Assembly to ensure we have a fully funded Medicaid program for the millions of North Carolinians who rely upon it for accessing their care."

"We thank Governor Stein for reversing the Medicaid provider reimbursement rate cuts, lifting significant financial strain from North Carolina's 42 Community Health Centers," said Chris Shank, President and CEO of the North Carolina Community Health Center Association. "This action protects access to care for the 800,000 North Carolinians served by our health centers each year. We look forward to partnering with the Governor and General Assembly toward our shared goals of strengthening the Medicaid program so that we can keep North Carolinians healthy."

"We appreciate the Governor's action today to avoid cuts to Medicaid rates and look forward to working with the legislature to appropriately fund the program," said Dr. Benjamin "Frankie" Simmons, President of the NC Academy of Family Physicians. "Access to primary care lowers cost and improves health outcomes, and that's why adequate funding of Medicaid is crucial to the health of our state."

"We are pleased that the Governor has taken steps to safeguard access to medical care in our State," said Carl Westcott, MD, president of the North Carolina Medical Society. "Medicaid is critical, and we look forward to working with the General Assembly and others on this issue."

NC Association of Health Plans, inc.: "Today's action ensures vital stability for North Carolina's providers and the patients they serve. NC's Managed Care Plans are committed to continuing to work with state leaders to sustain a strong Medicaid Program through access, quality, and innovation in healthcare across our communities."

NC Association of Public Community Health Plans: "The NC Association of Public Community Health Plans, which represents North Carolina's four LME/MCOs, appreciates Governor Stein's commitment to protecting access to care for the individuals and families we serve. North Carolina's LME/MCOs value our strong, longstanding partnerships with the General Assembly, NCDHHS, our provider community, statewide organizations, and-above all-the people we serve. We look forward to continuing this collaborative work in the upcoming session to secure a sustainable path forward that supports the health and wellbeing of communities across our state."

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