Governor Stein Fights Medicaid Cuts in North Carolina as He Urge Lawmakers to Fund Medicaid For October.
North Carolina is on the brink of implementing cuts to its Medicaid program, with state officials warning that reimbursement reductions could take effect as early as October 1 if lawmakers do not act quickly.
Governor Josh Stein has publicly called on the General Assembly to reverse the cuts by fully funding Medicaid—urging that the health care of millions of residents depend on it.
The Medicaid funding crisis in North Carolina stems from a significant shortfall in state appropriations. The state Department of Health and Human Services estimates a $319 million gap that must be filled to maintain current service levels.
When the legislature failed to deliver the needed funding by the end of the regular session, health officials warned that provider reimbursements would need to be cut.
Medicaid cuts in North Carolina Begin October 1
Under the cuts slated to begin October 1:
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A minimum 3% cut will apply across the board to all providers serving Medicaid patients.
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Primary care doctors may face an 8% cut, while specialty providers might see reductions up to 10%.
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Some health care organizations, including hospitals and clinics, warn that such cuts could force them to stop accepting Medicaid altogether.
Already, provider groups across the state have signed open letters urging a delay or cancellation of the cuts, citing risks to patients and system stability.
Gov. Stein’s Push For Reversible Cuts and a Call to Action
In his Thursday, September 25, press release, Governor Stein emphasized that some of the impending cuts are meant to be reversible—if the legislature acts in time. He stated:
“I call on the General Assembly to put our people’s health over their political disputes and send me a clean bill that keeps Medicaid running and ensure North Carolinians receive the critical care they need.”
Stein also warned that many providers might exit Medicaid entirely. He urged the General Assembly to “reverse cuts to Medicaid by fully funding the program in October.”
Medicaid Cuts in North Carolina
If left unaddressed, the cuts could ripple through North Carolina’s health system in several ways:
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Access to care: Reduced reimbursements may drive some providers to forgo accepting Medicaid patients, thereby limiting options for millions of low-income residents.
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Strain on hospitals and clinics: Especially in rural or underserved regions, smaller clinics and hospitals may struggle to bridge the funding gap or absorb losses.
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Uncertainty and disruption: Many non‑profit health organizations are already preparing for layoffs or scaling back services if the cuts take effect.
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Health outcomes risks: Delays in care, fewer provider choices, and financial stress can worsen chronic disease management, maternal health, mental health, and more.
In August, a “mini-budget” allocated $600 million toward Medicaid rebase funding to preserve current service levels, but that amount falls short of covering the full shortfall.
As of now, Republican leaders in the House and Senate have passed competing Medicaid funding plans but have not reconciled differences or returned for further votes before the Oct. 1 deadline
