Due To Budget Shortfall, North Carolina To Cut All Medicaid Rates By At Least 3%, Starting October 1, 2025

On August 11, 2025, the North Carolina Department of Health and Human Services (NCDHHS) informed Medicaid provider organizations that starting October 1, 2025, it would cut reimbursement rates by at least 3%. Certain institutional provider organizations and behavioral health services face rate cuts of up to 10%. NCDHHS also plans to end optional coverage of GLP-1 medications for weight loss, although they would still be covered as treatment for diabetes and heart disease. NCDHHS previously terminated the Medicaid Healthy Opportunities Pilot and the Integrated Care for Kids Pilot.

The planned rate cut is due to a $319 million appropriation . . .