NC governor orders state to restore Medicaid reimbursement 

RALEIGH, N.C. - Gov. Josh Stein is directing the North Carolina Department of Health and Human Services (NCDHHS) to restore Medicaid reimbursement rates to Sept. 30, 2025, levels. The governor’s office says 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. It says recent court orders have 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," Stein said. "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." The governor’s office says 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 Gov. 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."