Rep. Donny Lambeth (R- Forsyth) speaks at the Joint Legislative Meeting on Medicaid Tuesday October 14, 2025. (Photo by Galen Bacharier)
North Carolina Republican lawmakers on Tuesday criticized state health officials for moving ahead with Medicaid provider rate cuts lawmakers say were unnecessary.
“I’m still very upset about the rate cut,” said Sen. Donny Lambeth (R-Forsyth), co-chair of the Joint Legislative Oversight Committee on Medicaid. “They have the power to hold off on those rate cuts, and in the 12 years I’ve been here, we have never cut rates. If we were short on Medicaid, we filled that with new money later in the year.”
The comments came during an oversight meeting where state officials defended 3% to 10% provider payment cuts that took effect Oct. 1. The reductions are intended to offset a $368 million budget shortfall caused by rising costs.
Medicaid spending is growing faster than the state economy, driven by increasing behavioral health needs and rising prescription drug prices. Pharmacy spending alone has climbed 8.6% annually, DHHS Chief Strategy Officer Julia Lerche told lawmakers.
“This is not the direction the department wanted to go,” Jay Ludlam, deputy secretary for NC Medicaid told the Committee. “If the General Assembly appropriates the funding needed to run the program, we have designed our response to be reversible, and we are committed to reversing those provider rate cuts as soon as practically possible.”
Lambeth said DHHS should have consulted legislators before implementing the reductions. “We shouldn’t be sitting here in October getting the answer from them on how they decided to make those cuts,” he said. “We should have had that discussion back in July or August.”
“Unfortunately, we don’t operate with the budget we wish we had,” Ludlam responded. “We operate with the budget we do have, and we’ve had to act like a business and reduce costs in order to manage the budget that was appropriated.”
Lambeth also criticized how the cuts were distributed, saying smaller programs such as autism therapy providers were hit harder than large hospital systems. “To decide they’re going to cut a little group like autism by $70,000, when big hospitals could probably absorb that, is just not fair and equitable in my opinion,” Lambeth said.
Rep. Donna White (R-Johnston) called the move “very shocking and very hurtful,” warning that agencies serving people with disabilities and chronic illnesses might be forced to turn patients away or close.
“We can do better than this, and we can start today,” White said. “When we look at agencies possibly having to close down, or having to not admit the sickest and most fragile in our communities — this is very hurtful.”
Democratic Gov. Josh Stein has blamed Republican legislators for not allocating enough money to maintain Medicaid rates. The stopgap budget passed in July fell about $319 million short of what the program needed to cover its costs, according to the administration. DHHS warned lawmakers in August that the cuts would be made unless the legislature approved additional funding.
The Senate and House passed their respective Medicaid funding bills last month, but they remain at odds. Senate leaders wanted to include money for a new children’s hospital and money for rural hospitals, while House Republicans were pushing for a “clean bill” without the extra money. So, to date, no additional money has been appropriated to the program.
Medicaid leaders said they waited as long as they could for more funding, but had to move ahead with cuts October 1.
Since Medicaid expansion launched, about 685,000 additional residents have enrolled. The program now covers one in four North Carolinians and two in five children, funded mostly by federal dollars.
Meanwhile the cuts are rippling across providers. Agencies serving people with developmental disabilities are absorbing 8% reductions, while some dental practices say Medicaid now reimburses only about 35% of actual costs. A survey by the North Carolina Academy of Family Physicians and the Pediatric Society found 44% of practices may limit Medicaid patients and nearly 10% may stop accepting them altogether, NC Newsline has reported.
Hence then, the article about nc republican lawmakers criticize state health officials for cutting medicaid provider rates was published today ( ) and is available on NC news line ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( NC Republican lawmakers criticize state health officials for cutting Medicaid provider rates )
Also on site :
- Ticketmaster Hires Square Veteran as Global President to Lead AI Transformation
- Suspect in US arson attack at Pennsylvania governor’s mansion pleads guilty
- 'Dancing With the Stars' Duo No Longer on Speaking Terms