Multiple States Implement Medicaid Provider Payment Cuts Amid Federal Funding Reductions

States including North Carolina are already implementing Medicaid provider payment cuts ranging from 3% to 10%, impacting access to care for vulnerable populations such as medically fragile children and disabled adults. These cuts come amid state budget shortfalls and precede larger federal funding reductions outlined in the 2025 budget reconciliation bill, HR 1, which is expected to cut federal Medicaid spending by $1 trillion over ten years. Families reliant on Medicaid-funded therapies, such as ABA therapy for autistic children, are experiencing disruptions as providers cancel appointments due to lowered reimbursements. North Carolina's cuts have led to pay reductions for caregivers and health providers, with ripple effects threatening primary care practices and specialized services. State officials cite the inability to cover Medicaid costs without legislative increases, while political disputes have stalled additional funding measures. The cumulative impact of these state and impending federal cuts threatens to worsen healthcare access, particularly in rural areas and states with large Medicaid populations.