States Cutting Medicaid Provider Payments Ahead of Federal Cuts
Multiple U.S. states are trimming Medicaid provider reimbursements now—well before the Trump administration’s scheduled federal funding reductions take effect—squeezing hospitals, doctors and home caregivers and threatening immediate access for Medicaid enrollees. North Carolina implemented cuts effective Oct. 1, 2025 (a minimum 3% reduction across providers, 8% for primary care and 10% for specialists), while Idaho and Washington have announced or approved similar measures as states confront budget shortfalls and prepare for long-term federal funding changes.
Health
Politics
📌 Key Facts
- North Carolina instituted minimum 3% cuts for all Medicaid providers effective Oct. 1, 2025; primary care faces an 8% cut and specialty doctors 10%.
- North Carolina is projected to lose about $23 billion in federal Medicaid dollars over the next decade under the new federal law referenced by states.
- The article profiles impacted parties—e.g., caregiver Alessandra Fabrello and her son—notes provider refusals (a dentist telling Fabrello they will stop accepting Medicaid in November), and cites officials and former officials warning of immediate access loss and downstream costs.
📚 Contextual Background
- Medicaid is a government health insurance program for people with low incomes or disabilities and is funded jointly by state and federal governments.
- Medicaid spending is typically one of the largest components of U.S. state budgets.