POLITICS

North Carolina Restores Medicaid Reimbursement Rates After Cuts

PUBLISHED Dec 10, 2025, 12:05 PM ET

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North Carolina Restores Medicaid Reimbursement Rates After Cuts

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RALEIGH, N.C. Gov. Josh Stein announced Wednesday that his administration will restore Medicaid reimbursement rates that were reduced Oct. 1 by 3% to 10%. The move follows judicial rulings requiring some rates be returned and legal challenges to the cuts. Stein cited ongoing funding shortfalls after a summer stopgap left a reported $319 million gap and a legislative impasse over additional appropriations. The reversal affects more than 3.1 million Medicaid enrollees and aims to preserve short-term access to care while Republican lawmakers and the administration negotiate longer-term budget solutions for now locally. Based on 6 articles reviewed and supporting research.

By Michael Grant | JQJO News

Timeline of Events

Summer 2023: Stopgap spending measure left a reported $319 million Medicaid shortfall.
July 1, 2023: Fiscal year began without a final budget resolving Medicaid funding needs.
Oct. 1, 2023: State reduced Medicaid provider reimbursements generally by 3%–10%.
October–November 2023: Legal challenges and court rulings demanded some rates be returned to pre-cut levels.
Wednesday (announcement): Gov. Josh Stein announced restoration of Medicaid reimbursement rates pending legislative action.

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Who Benefited

Medicaid enrollees and medical providers benefited from the restoration of reimbursement rates, which preserved short-term access to care while state leaders negotiate funding to cover program shortfalls.

Who Impacted

North Carolina's Medicaid program and state budget continue to face a funding shortfall; providers faced immediate payment uncertainty and the state risks further legal and fiscal challenges if lawmakers do not secure additional appropriations.

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