RALEIGH, N.C. (NCN News) — Only two days into the Short Session, the General Assembly voted for a deal to provide up to $319 million more in funding for Medicaid to finish out the fiscal year that ends in June.
The legislation also includes what Republican legislative leaders say are “commonsense measures to root out fraud, waste, and abuse in order to rein in costs.”
There was one no vote in each chamber.
The agreement comes after extensive negotiations between House and Senate Health Care committee chairs to address the Medicaid rebase funding needs and determine ways to address the program’s skyrocketing costs.
“We cannot continue to throw dollars at a program without making changes to protect taxpayers and ensure the North Carolinians who truly need Medicaid can get care,” Sen. Benton Sawrey (R-Johnston), chair of the Senate Health Care Committee, said. “Republicans in the General Assembly are taking fraud, waste, and abuse at all levels seriously, and this deal provides us an avenue to keep the program running while examining the reasons for the exorbitant cost increases.”
Republican House Speaker Destin Hall said, “Medicaid should serve the people who truly need it, and this bill makes sure that happens. After Gov. Stein and his administration let costs run wild, we’re tightening things up by adding common-sense guardrails that cut down on waste, fraud, and abuse in the program. North Carolina taxpayers deserve confidence that their money is being spent wisely, and patients deserve a system that prioritizes care for those who depend on it the most.”
Sen. Amy Galey (R-Alamance), chair of the Senate Health Committee, said, “It’s unrealistic to believe that we should just pour more money into a program without making sure it’s performing as well as it can. Putting these measures in place will help us create a more efficient, cost-effective Medicaid program that delivers better outcomes for patients.”
Sen. Jim Burgin (R-Harnett), chair of the Senate Health Committee, said, “North Carolinians across the state who rely on Medicaid should rest assured that the General Assembly is committed to making sure the program prioritizes care for residents, not its bureaucracy. I’m encouraged by the Department’s willingness to work with the General Assembly to keep costs down.”
There was some criticism of the bill, noting some new requirements related to checks to verify Medicaid eligibility and requiring the Department of Health and Human Services (NCDHHS) to share applicants’ information with the Department of Homeland Security (DHS).
A statement for advocacy group El Pueblo said: “While approving the necessary and urgent funding for the state’s Medicaid program on which 3 million low-income people in North Carolina rely to access health care the Legislature has used this bill to impose harmful anti-immigrant requirements that could discourage thousands of families, especially mixed-status families, from seeking medical care for which they are legally eligible.”
In addition to the Medicaid funding, the bill also includes:
- $1 million nonrecurring to cover the remainder of the 2025-26 school year scholarship awards for students receiving the Children of Wartime Veterans Scholarship
- $10 million recurring in fiscal year 2026-27 for the Children of Wartime Veterans Scholarship program
- $80 million nonrecurring for the Department of Adult Correction
- $2.5 million recurring and $1.2 million nonrecurring for the State Bureau of Investigation
- $165,000 nonrecurring to maintain and operate the Business Court’s current case management software
- $13.1 million recurring and $8.5 million nonrecurring for the Division of Motor Vehicles
Final votes are expected in both chambers next week.