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North Carolina Restores Medicaid Rates After Court Rulings, Promises Retroactive Pay

Court orders compelled the reversal, leaving a $319 million Medicaid funding gap unresolved.

Overview

  • Gov. Josh Stein and NCDHHS Secretary Dr. Dev Sangvai ended reimbursement reductions of roughly 3% to 10% that began Oct. 1.
  • Providers will receive retroactive payments covering the difference on claims submitted since the cuts took effect.
  • State officials say Medicaid still faces a $319 million shortfall and warn funds are projected to last only until the spring without new appropriations.
  • Multiple lawsuits by patients and providers produced rulings that blocked parts of the cuts and pressured the state to restore pre-October rates.
  • The budget impasse continues as legislative leaders rejected a special session, and North Carolina remains without an enacted two-year budget.