NC Senate and House Release Separate Medicaid Funding Bills
Today, the North Carolina House and Senate released separate bills addressing North Carolina’s Medicaid funding.
The House released Senate Bill 403, which they claim fully funds the state’s Medicaid rebase while protecting teacher and state employee pay raises and avoiding a new provider rate cut. The release from the House highlighted that this bill was the product of work between the House and Governor Stein’s administration.
House Appropriations Senior Chair Donny Lambeth (R-Forsyth) said, “A strong health care system builds a stronger North Carolina. Our plan is the responsible way forward by avoiding NCDHHS’s politically motivated cuts and ensuring stability for patients who need it most.”
Senate Bill 403 appropriates $192 million in additional funding, bringing the General Assembly’s total Medicaid rebase and Medicaid administration investment this year to $792 million, following $600 million previously enacted.
The Senate released a new version of House Bill 562. Like the House’s proposal, the bill increases funding for the Medicaid rebased rate based on the General Assembly’s nonpartisan staff. Similar to the House’s proposal, the Senate’s plan directs the elimination of some vacant positions, while also requiring plans to improve health outcomes, program integrity, cost savings, and efficiency measures for Medicaid.
“The proposed provider rate cuts initiated by Gov. Stein’s health department are hasty and unprecedented,” Senate Appropriations Chairman Sen. Brent Jackson (R-Sampson) said. “If the department and the Governor expect the General Assembly to continue to pump millions of dollars into the program, we need them to make every effort to find savings and evaluate its performance.”
Unlike the House plan, the Senate’s proposal provides additional funding for the N.C. Care initiative and N.C. Children’s Hospital, as outlined in the 2023-2025 state budget. The N.C. Care initiative supports rural hospitals and three rural care centers. The House and Senate previously approved $420 million for the NC care projects, and this would release $105 million to fulfill the final obligation.
“Our rural hospitals play a critical role in their communities,” Senate Appropriations Chairman Ralph Hise (R-Mitchell) said. “N.C. Care is an important piece of the puzzle, including supporting healthcare needs in communities devastated by Hurricane Helene. The last year of funding will help continue these major projects.”
The N.C. Children’s Hospital would establish the state’s first freestanding children’s hospital. In 2023, both the House and Senate approved nearly $320 million over three fiscal years for the hospital. This would release $103.5 million to fulfill the third-year obligation.
“Two years ago, the General Assembly came together to support vital healthcare projects across the state,” Senate Appropriations Chairman Sen. Michael Lee (R-New Hanover) said. “Families across North Carolina are making tremendous sacrifices to travel to states like Pennsylvania or Ohio to get the care their children need. We have world-class medical schools and some of the brightest researchers in the country, and a children’s hospital will help keep them here.”
