4% Rate Cut Possible for Medicaid Providers

State Appropriation Chairs have confirmed that a 4% across-the-board Medicaid provider rate cut is one of the many options being considered as legislators try to reduce spending in order to balance the state budget.  Health & Human Services has been targeted with nearly half a billion dollars in reductions. Talk of rate cuts come as no surprise since the leadership of both chambers has been saying that all options are on the table.  

Just last week, lawmakers stopped a $26 million Medicaid provider rate cut from going into effect for the end of this current budget cycle.  This newly considered 4% cut in the next budget cycle would total over $84 million. NCMS is working closely with Appropriation leaders who are open to finding alternative ways to make the reductions necessary to balance the budget.

The budget process is moving fast.  House Appropriations Committees are meeting daily to discuss potential reductions. The House is expected to begin voting on their budget proposals in the first week of April.

We need your help! Contact your legislator and tell them how a further 4% Medicaid provider rate reduction would impact your patients and your practice. (Click here to find your legislator.) 

Let them know:

  • Medicaid providers have already experienced $175 million in rate cuts over the past three years.
  • Providers are offering solutions to achieve the necessary savings through participation in Community Care of North Carolina, saving the state more than $200 million annually.
  • Adequate Medicaid reimbursement rates are critical to maintaining a strong provider network.
  • Office-based physicians support 103,634 jobs in North Carolina and $15.7 billion in wages and benefits.

The action you take today will greatly impact this budget cycle and the state’s Medicaid budget. Call or e-mail your legislator today!


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