With federal budget cuts looming, NC House bill plots roadmap for possible Medicaid reductions

 It could be months before we know how Medicaid could be affected as Congress attempts to trim $2 trillion from federal government spending. State lawmakers have started planning for a possible decrease in funds.

Republicans in the North Carolina House of Representatives, including Donny Lambeth of Forsyth County and Larry Potts of Davidson County, have filed a bill to set up a committee exploring what the state will do if funds are reduced.

Lambeth says House Bill 113 is a way to plan ahead.

“The fundamental question to me is, 'What would the state of North Carolina do if Medicaid funds are cut at the federal level with the idea that they would shift the obligation down to the states?'" he says. "And I felt like rather than waiting, we really need to be proactive and know what to do.”

Lambeth says among the things that could change are optional services that Medicaid allows and North Carolina offers, such as dental work.

The federal government pays 90 percent of expansion-eligible Medicaid expenses and providers pay 10 percent. 

Lambeth says the state’s expansion will be phased out if those federal funds drop below 90 percent unless providers are willing to make up the difference.

More than 620,000 North Carolinians are enrolled through the Medicaid expansion that launched in December 2023.