North Carolina Restores Medicaid Rates After Court Rulings

The North Carolina Department of Health and Human Services (NCDHHS) reversed Medicaid reimbursement cuts of 3% to 10% that began October 1, 2025. The reversal is due to court rulings that indicated the cuts discriminated against people with disabilities.

NCDHHS is restoring Medicaid reimbursement rates to September 30, 2025, levels. Provider organizations will receive retroactive payments for care already delivered.

NCDHHS had implemented the cuts because the legislature failed to fully fund the Medicaid program. In a stopgap budget, the legislature left a shortfall of $319 million in the Medicaid budget. The rate cuts were intended to help the program . . .