RALEIGH, N.C. (WTVD) — North Carolina Democratic Gov. Josh Stein has canceled Medicaid reimbursement rate reductions he initiated two months ago; a move aimed at protecting short-term access to care for vulnerable patients amid a funding dispute with legislators.
Stein and state Health and Human Services Secretary Dr. Dev Sangvai announced Wednesday that reimbursement rates for doctors, hospitals, and other Medicaid providers, which had been cut by 3% to 10% starting Oct. 1, would be restored.
“We face the prospect of further destabilizing our health care system with devastating financial strain on providers,” Sangvai said Wednesday. “I want to be clear about what’s at stake if Medicaid isn’t fully funded, services could be eliminated. Providers could be left waiting for payments that may never come.”
The governor had argued the reductions were necessary to address a Medicaid funding shortfall, citing a $319 million gap in the stopgap spending measure approved by the legislature. Stein has repeatedly called on lawmakers to pass a Medicaid budget, accusing Republican leaders of abandoning their responsibility to those reliant on the program.
“The members of the General Assembly have had six months to take action and solve this problem. But they have failed. They have failed North Carolina. They have failed the people of North Carolina. And now they have packed up and left town, ostensibly until next year. It is shameful,” Stein said in November.
Meantime, House lawmakers pointed the finger back at the Governor, saying he chose to cut rates on October 1st despite not needing to – and was using Medicaid as a political pawn.
“Looking ahead, the House will continue to monitor Medicaid spending to ensure taxpayer dollars are spent wisely and, if a verified shortfall emerges, act quickly to protect North Carolinians’ access to care,” a House statement read.
Efforts to resolve the issue through additional funding stalled in the fall, with Republican leaders unable to agree on legislation to sustain the program. Stein attempted to pressure lawmakers by calling a special legislative session, but House Speaker Destin Hall and Senate leader Phil Berger refused to convene, citing procedural issues.
Legal challenges from Medicaid providers and consumers, including children with autism and adult care homes, have successfully blocked some rate reductions, accusing the state of violating laws and discriminating against those with disabilities.
The Medicaid shortfall continues, however, an offshoot of GOP leaders being unable to pass a conventional two-year budget – largely over differences about additional income tax reductions and teacher pay. North Carolina remains the only state without an enacted budget, according to the National Conference of State Legislatures. A budget was supposed to be in place July 1.
“North Carolina has worked hard for years to build a fiscally responsible, high performing Medicaid program, one that is the envy of every state in the nation. And everyone agrees that more funding is needed to keep it whole,” said Sangvai.
The legislature is set to convene next week, but no action or recorded votes are expected.
“If the legislature would simply do its job and pass a budget that fully funded Medicaid, we never would have had to start this entire enterprise,” Stein said.
Associated Press contributed to this report.
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