Medicaid funding and other spending bills pass the NC Senate, with House approval uncertain ...Middle East

Patrick Dunnagan of Raleigh said at a Sept. 22 rally that Medicaid was critical to his being able to afford treatment for kidney failure. (Photo: Lynn Bonner/NC Newsline)

With time running short,  the state Senate approved additional money for Medicaid insurance to avoid threatened payment reductions to a broad range of health care providers, which legislators warned could result in sick people losing their medical care. 

The Senate added $90 million to $600 million already approved to cover Medicaid cost increases from inflation, changes in the types of care delivered, and other factors, and added $83.6 million for Medicaid administration. 

The hitch is that Senate wrapped $103.5 million for a children’s hospital into the bill, which House Republicans have said they don’t want included. If  the General Assembly doesn’t approve more Medicaid money soon, the state Department of Health and Human Services has said it will cut health care provider payment rates.

The medical funding bill was one of eight directing spending to discrete areas of state government that the Senate approved Monday. Republicans in the state House and Senate have not been able to agree on a comprehensive spending plan for the budget year that began July 1. Legislators are debating mini-budgets instead.

The legislature allocated $600 million to cover changes in the state’s Medicaid program in a stopgap budget approved in July, but that was short of the $819 million DHHS  said is needed. In response, DHHS announced it would reduce payments to a wide range of health care providers beginning Oct. 1. 

Looming over the debate over House bill 562 was the prospect of patients losing health care and medical workers losing their jobs if the House does not agree to a medical funding bill that includes the children’s hospital. 

Democrats in the House and Senate asked for a “clean” bill dealing only with the additional money for Medicaid, fearing an impasse between House and Senate Republicans will trigger reduced payments to providers who will then cut medical services. 

“People with disabilities are in a blind panic over this,” Sen. Lisa Grafstein (D-Wake) said in the Senate budget committee. Grafstein said she supports the children’s hospital, but if the House rejects the Senate budget proposal, the hospital doesn’t get its money and the health care is cut. 

“Somebody with a disability who relies on Medicaid day after day after day, they may lose their provider,” she said. “Little providers are going to go out of business. These cuts are going to hit them hard.”

Sen. Michael Lee (R-New Hanover) said the legislature agreed in 2023 to fund the children’s hospital, and the Senate proposal makes good on the final installment. The money is coming from the 2021 federal COVID-19 relief fund, called the American Rescue Plan Act, he said. “There are people relying on it, they’ve been relying on it, they’ve made plans on it, and we need to do it.”

The Senate approved the bill unanimously, despite Democrats’ warnings that it may die in the House.

At a press conference Monday, a group of House Democrats also pushed for a bill that excludes any provisions that might derail the additional Medicaid funding. 

An impasse will result in people losing lifesaving services, said Rep. Julia Greenfield (D-Mecklenburg).

“They are playing with our lives,” she said. “Your health should never, ever  be a bargaining chip.”

Speakers at a rally Monday morning outside the Legislative Building spoke about the importance of passing a comprehensive budget and fully funding Medicaid.

Patrick Dunnagan of Raleigh talked about how massive kidney failure transformed his life at age 25, and how Medicaid was crucial to his treatment.

Dunnagan said he went from enjoying outdoor adventures to losing his health, his job, his independence, and the ability to stay alive on his own.

“As kidney disease began to reshape my life, Medicaid was there to help make sure I had access to emergency treatments and surgeries,” he said.

Among the other bills the Senate considered would provide raises to law enforcement officers, fund construction projects and support economic development plans.

Senate Republicans block Planned Parenthood from Medicaid dollars

The Senate approved House bill 192,  which would prohibit Planned Parenthood from participating in Medicaid.

North Carolina Republicans have worked to curtail Planned Parenthood in recent years, but the organization could still receive $830,000 through Medicaid, said Sen. Amy Galey (R-Alamance).

Witnesses spoke against the measure in committee.

Paige Johnson, president and CEO of Planned Parenthood South Atlantic, said the bill is about playing politics.

“It is about taking health care away from the people who need it,” she said.

If the bill becomes law, North Carolinians would lose access to birth control, cancer screenings, and treatment for sexually transmitted infections, Johnson said.

Michaela Barnes, a 14th generation North Carolinian, said her family has been in the area since 1660. Her ancestors fought in the Revolutionary and Civil Wars.

“I am going through a divorce right now in a domestic violence situation where the only option that I had was Planned Parenthood,” Barnes said. “Medicaid is used to give life saving health care to those who cannot afford it.”

Another speaker, Morgan Pixa, said the organization helped him with an urgent medical issue when he was not able to receive care from his primary provider.

Galey said she does not support Planned Parenthood providing services because she thinks “they indoctrinate.” Upon questioning from another committee member, she clarified she does not have a medical objection.

“I think that Planned Parenthood is not a good faith organization,” Galey said.

Late in the day, the Senate  passed a bill allocating funds to recovery from Tropical Storm Chantal and other disasters.

The State Emergency Response and Disaster Relief Fund provides $65.5 million in nonrecurring funds for the 2025-2026 fiscal year.

Of this amount, $55 million goes to the Department of Public Safety’s Division of Emergency Management (NCEM) for the State Match Fund and $6 million to NCEM in the form of grants to individuals and families.

The sum also allows $1.5 million to Warren Wilson College and $1 million to the Board of Governors for the University of North Carolina at Asheville, for the purpose of repairing and renovating buildings damaged by Hurricane Helene.

For transportation, the measure appropriates $750,000 to the RDU Airport Authority for costs with expanding direct flights to Dublin, Ireland. Additionally, there will be $3.6 million for hangar improvements at the Tri-County Airport and $10.4 million recurring to the Coastal Carolina Regional Airport Authority for infrastructure needs and site clearing.

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