The rate cut to the physician fee schedule for Medicaid enacted in September of 2009 has had a profound impact on many of our members’ ability to care for Medicaid patients across NC.  In addition, the 2010 State Budget passed just over a month ago placed physicians firmly on the chopping block should Congress fail to continue the increased Federal Medical Assistance Percentage (FMAP) funding that has occurred for the past 18 months. 

We are pleased that Congress took action this past week to continue FMAP funding as well as include unforeseen money specifically targeted for education.  Despite these developments, it is our understanding that the NC Department of Health and Human Services (DHHS) is announcing a new 1.35% rate cut to achieve the $26.6 million dollar reduction outlined in the contingency budget even in light of the windfall in federal funding.

The proposed cut is completely unacceptable.  Please review this letter sent to the Governor objecting to the new rate cut.  It is our hope that you will review this letter, make appropriate changes to identify yourself, and mail your own letter as soon as possible. 

Federal health reform will drive 500,000 new patients to the Medicaid rolls over the next couple of years. To address this challenge, we must stand together to ensure that the value of your services provided under the physician fee schedule is preserved.  The budget shortfalls and fallout from the recession should not be borne on the backs of the physicians and PAs that are providing the most cost effective medical care to our Medicaid population.

NCMS values your support and your attention to this matter.  We will continue to advocate for appropriate reimbursement so that Medicaid patients can continue to receive the best care available.