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Home News

NC Cuts Medicaid Provider Rates, O&P Responds

by The O&P EDGE
August 28, 2025
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The North Carolina Department of Health and Human Services will reduce rates to all Medicaid medical providers by 3 percent beginning October 1; larger cuts are planned for some medical specialties that do not included O&P.

In a letter obtained by NC Newsline, North Carolina Department of Health and Human Services (NCDHHS) Secretary Devdutta “Dev” Sangvai wrote that while the department requested $819 million for the state’s calculation of required costs, the 2025-26 Medicaid rebase, only $500 million was appropriated.

“Despite careful efforts to minimize harm, the reductions now required carry serious and far-reaching consequences. Most immediately, reduced rates and the elimination of services could drive providers out of the Medicaid program, threatening access to care for those who need it most,” Sangvai wrote. “NCDHHS remains hopeful that additional appropriations can be made to prevent these reductions.”

Jim Del Bianco, CPO, founder, Del Bianco Prosthetics and Orthotics, North Carolina, posted an invitation on the OANDP-L listserv for O&P practitioners in the state to join an online meeting to share ways individual practitioners can contact state representatives in an effort to close the budgetary gap via grassroots efforts and advocacy.

The 30-minute meeting will be held September 4 at noon via Microsoft Teams and hosted by Del Bianco; Sean Zeller, CPO, UNC Health; Jeff Smith, CPO, Hanger; and Mike Neal, CPO, Hanger. No official group or company is funding or responsible for the meeting’s content.

A mid-September session of the North Carolina General Assembly may offer an opportunity to prevent the cuts from taking place.

“It will take a concerted effort to meet with [North Carolina] representatives and share our concerns,” Del Bianco wrote. “We need your help. This can’t be done solely by practice owners and managers. Everyone matters in this effort just as everyone will be affected by this cut, both practices and patients. Please consider joining and helping.”

A spokesperson for Governor Josh Stein’s office wrote that he continues to urge the state’s legislature to pass a complete budget and make up for the shortfall in the Medicaid rebase.

“The Governor has been clear since March that the General Assembly needs to fully fund the Medicaid rebase, and he recently reiterated his concern when their Band-Aid budget fell $319 million short of what is needed to fund North Carolinians’ healthcare,” the spokesperson wrote. “Governor Stein continues to urge the legislature to do its job and pass a budget that stops these forced cuts.”

To join the O&P meeting, visit NC Medicaid 3% cut upcoming.

To read Sangvai’s letter, visit NC Newsline.

 

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