North Carolina Governor Josh Stein has reversed controversial Medicaid reimbursement cuts that began on October 1, following mounting legal pressure and growing concerns from health care providers and patients across the state. The rollback provides temporary relief for the nearly three million residents who rely on Medicaid, as well as the doctors and hospitals that serve them.
The cuts, which ranged from 3% to 10%, were initially implemented by the Stein administration to address a $319 million shortfall in the Medicaid budget. The governor placed the blame for the financial gap squarely on Republican leadership in the General Assembly, which has failed to pass a state budget for the fiscal year that began July 1. Stein said the Legislature’s inaction forced his administration to take unilateral action to keep the Medicaid program afloat.
“We are restoring the rates because the courts have required doing so, but the $319 million funding gap remains,” Stein said during a press conference on Wednesday. The Department of Health and Human Services (NCDHHS) echoed that message, noting the state is only funded to continue at current Medicaid levels through April.
Legal challenges to the rate cuts have gained traction in recent weeks, with courts ruling that the reductions were unlawful without legislative authorization. This judicial pressure led the administration to formally reverse the cuts, despite the ongoing budget impasse.
Attempts by Stein to call a special legislative session to address the issue were denied, with Republican leaders arguing the situation did not meet the criteria required to trigger such a session. House Speaker Pro Tempore Destin Hall has stated that no additional voting sessions are planned for the remainder of the year.
Meanwhile, the calendars for both the House and Senate remain empty, even though both chambers are scheduled to reconvene on Monday. As budget negotiations remain stalled, the future of Medicaid funding—and the services it supports—remains uncertain.
