North Carolina reverses Medicaid cuts after lawsuits
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Natalie Peeples/Axios
The state is reversing the Medicaid cuts made earlier this year to save money after lawmakers' negotiations over a budget fully funding the health care program fell apart.
Why it matters: A quarter of North Carolinians — over 3.1 million people — have health care coverage through Medicaid, and Gov. Josh Stein's administration warned that cuts would ripple throughout the entire health care ecosystem.
Catch up quick: On Oct. 1, the Democratic governor's administration cut the amount it reimburses providers who accept Medicaid by up to 10%, depending on the service.
- Stein said Wednesday in a press conference that Republican lawmakers "forced these cuts" by failing to compromise on a budget for the fiscal year that began July 1.
State of play: The GOP-controlled House and Senate remain at odds over what, if anything, should be tied to the $170 million they agreed was needed to keep Medicaid afloat through next summer. Bills containing that money didn't ultimately pass.
- "What folks need is certainty, stability, security, and the General Assembly has not yet provided that," Stein said.
The other side: House Speaker Destin Hall called the Stein administration's cuts "illegal and unnecessary."
- "He tried playing political games with people's lives and it backfired. North Carolina deserves better," Hall wrote on social media.
- Senate leader Phil Berger blamed Stein's administration for allowing administrative bloat and bureaucracy. "Stein's self-inflicted 'crisis' was an unnecessary disruption that hurt North Carolinians."
What they're saying: The "cuts would have been devastating, threatening the stability of primary care practices and limiting access for every patient that we serve," Frankie Simmons, a doctor and president of the North Carolina Academy of Family Physicians, said at the presser.
Zoom in: With lawsuits piling up, Stein said, the Department of Health and Human Services "can read the writing on the wall."
- The first to sue were 21 families whose children have autism and were receiving behavioral therapy, whose providers saw their reimbursement rates cut by 10%.
- They won a temporary injunction, and Stein says three more lawsuits have since been filed, with more "waiting in the wings."
Threat level: DHHS Secretary Devdutta Sangvai, a medical doctor himself, warns that if money is allowed to run out, providers could be stiffed, and some services would vanish, potentially leading to layoffs and clinic closures.
- "The entire state is at risk without full funding. Vulnerable North Carolinians — children, seniors, veterans, people with disabilities — could lose access to care," he said at Wednesday's presser.
- "Rural communities will be hit the hardest," he continued. "In several rural counties, more than half of the population is covered by Medicaid."
Between the lines: The state's Medicaid program is set to run out of money in April, according to Stein and Sangvai.
- That's after the March 3 primary, where some powerful lawmakers like Berger will face challenges from within the Republican party.
What's next: The General Assembly is not expected to take any votes before January.