‘Catastrophic implications’: Inside the NC court battle over Medicaid cuts

Guno צְבִי

We fight, We win, Am Yisrael Chai
A legal battle underway Tuesday could have far-reaching implications for North Carolinians who live or work in adult-care homes — as well as having broader political implications for a fight between the state’s Democratic governor and Republican lawmakers.

The Republican-led state legislature failed to pass a new state budget. Legislative leaders say they have no plans to attempt another budget vote for at least several more months. As a result, the state’s Medicaid program is underfunded by hundreds of millions of dollars.

To manage the shortfall, Democratic Gov. Josh Stein’s administration has begun cutting what the state’s Department of Health and Human Service reimburses health care providers — hospitals, doctors, health clinics, specialty homes and others — for treating patients on Medicaid. The federal program, which is administered by the state, insures about 3 million North Carolinians, or nearly one in every three state residents.

Many of those providers are now seeing their reimbursements cut by between 3% and 10%. In response, several groups of patients and providers have sued, arguing that DHHS isn’t authorized to cut the rates without approval from lawmakers. The administrative law judge hearing the case didn’t immediately issue a ruling after Tuesday’s hearing ended but said he expects to make a decision Tuesday or Wednesday.

 
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