Medicaid Update
Our Advocacy team has been working hard to stay informed on changes to NC Medicaid. We’ve been meeting with members of the NC General Assembly, NC Medicaid, and community stakeholders. We want to provide you with the latest information.
If you have been watching or reading the news, you may have seen several stories about Medicaid cuts at the state level. Many individuals we serve are concerned, so we want to provide some education and background to help answer your questions.
It’s important to note that the cuts to Medicaid discussed here are related to the state budget. They are not connected to the federal Medicaid program and the cuts that were mandated as part of the budget reconciliation bill (H.R. 1) that was passed in early July 2025. Most of those cuts will go into effect in early 2027.
Several members of the leadership team at NC DHHS have been meeting with members from the NC House of Representatives and NC Senate to discuss budget needs for the NC Medicaid program.
NC DHHS released information and projections which stated in order to fully fund NC Medicaid in 2026, a total of $819 million is needed. This would keep the Medicaid services and programs intact. On July 29, 2025, the North Carolina General Assembly passed a mini budget which included $500 million to help fund Medicaid programs and services.
Since this is $319 million less than what was asked for by NC DHHS, the team at NC Medicaid began preparing a list of cuts that were presented to the NC General Assembly (this was done through a letter which was sent from NC DHHS Secretary Dev Sangvai) and held meetings with Medicaid providers and community organizations to explain the cuts.
Some of the cuts include lowering the rates that Medicaid providers are paid. That means a doctor or community organization would receive less money for services they provide.
We want to make two things clear:
- The state of North Carolina is required by law to have a balanced budget every year. Since NC DHHS is a state government agency, they are required to follow that law.
- If there are no changes made to the funding gap of $319 million, the cuts go into effect on October 1, 2025.
The Arc of North Carolina continues to advocate, strategize, and collaborate with leaders at NC DHHS, NC Medicaid, legislators, and other community stakeholders to discuss options to help solve this problem. Our team will continue to fight for the rights of individuals with IDD and their families. We will continue to post updates on our blog and social media.
Read more about the cuts: