The cuts, set to take effect Oct. 1, could mean providers would face rate cuts of at least 3%. This amid the cuts and changes to Medicaid programs across the country after Congress passed the so-called "One Big Beautiful Bill" earlier this year.
Now, the North Carolina General Assembly is deadlocked over how to fund the Medicaid program, which provides health care to about one in every four residents in the state.
More than 3 million North Carolinians rely on Medicaid, and some advocates say patients and providers are already feeling the pressure.
"They're nervous. It's causing some stress," said David Laxton with Autism Society of North Carolina, who works with people covered under Medicaid on a regular basis. "There's just a lot of uncertainty and a lot of concern over what things are going to actually look like whenever some of these changes do take effect."
The North Carolina Department of Health and Human Services has warned that without additional funding, the state may be forced to impose rate cuts of 3% or more on Medicaid providers starting in October.
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"It really does make a difference in people's lives," Laxton said. "So, we hope that we don't get to a point where rates are cut and services are impacted."
Lower reimbursement rates could make it harder for some doctors, therapists, and care facilities to keep their doors open.
"It's going to cut into what they're able to pay their staff. It's going to cut into what little margin they might be making to maintain their business," Laxton said.
That could result in fewer care options for millions of people across the state who rely on those providers.
Advocates like Laxton are calling on residents to share their stories and contact lawmakers.
"Everybody has a story to tell," he said. "But it's more effective whenever they are telling the people that represent them how that's going to impact their loved one, how that's going to impact their family."
Gov. Stein is expected to hold a press conference Thursday afternoon to call on lawmakers to act. The General Assembly has one week left to reach an agreement and prevent the cuts from going into effect.