The North Carolina Department of Health and Human Services (NCDHHS) has announced plans to cut Medicaid reimbursement rates for providers, a measure taken to address a projected budget shortfall.
What’s Happening: The NCDHHS will implement a minimum 3% reduction in reimbursement rates across all Medicaid providers, with some services facing steeper cuts of 8% to 10%.
Who is Affected: The cuts will impact hospitals, physicians, dentists, long-term care facilities, and other healthcare providers. Services like long-term behavioral healthcare, hospital care, nursing homes, and physician services will be subject to the higher cuts.
Why It’s Happening: The reductions are a result of a $319 million funding gap in the state’s Medicaid budget. NCDHHS officials have stated that these cuts are designed to be reversible should additional funding be appropriated by the General Assembly.
Impact on Care
Officials and industry experts have expressed concern that the reduced rates may force some providers to stop accepting Medicaid patients, which could threaten access to care for the more than 3 million people who rely on the program in North Carolina. In addition to rate cuts, the NCDHHS will also cease coverage for GLP-1 drugs for weight loss and end the Integrated Care for Kids pilot program ahead of schedule.