Governor calls special legislative session to address North Carolina Medicaid funding

Josh Stein, Governor - Office of the Governor of North Carolina
Josh Stein, Governor - Office of the Governor of North Carolina
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Governor Josh Stein has called an extra session of the North Carolina General Assembly for November 17, 2025, to address Medicaid funding. The announcement came as Stein highlighted the experiences of Medicaid patients and providers, emphasizing the importance of continued support for the program.

During the event, disability advocates Demi Eckhoff and Betsy MacMichael, along with Dr. Karen Smith, shared their perspectives on how Medicaid affects their lives. Governor Stein stated, “The stories shared today make crystal clear that Medicaid ensures access to life-saving care. The General Assembly is using people’s health and well-being as bargaining chips in an unrelated budget dispute, and it’s shameful. The legislature must come back to Raleigh and do its job so that the three million North Carolinians who rely on Medicaid can get the care they need.”

NC Health and Human Services Secretary Dev Sangvai added, “We have spent years building a fiscally responsible, innovative Medicaid program that millions of our residents rely on for life-changing and often life-saving care. NC Medicaid is a critical driver in the health of North Carolinians, and we all agree it needs to be fully funded. Let’s come together and get it done.”

Demi Eckhoff described how reductions in funding could affect her independence: “My Direct Support Professionals are my ramp to the world and my community. A pay cut translates into potentially losing direct support professionals, which threatens my independence. If I don’t have my DSPs, I am at risk of going to the hospital, where I can’t work or study. Our disability community is fearful that these cuts will impact our basic needs and life.”

Betsy MacMichael spoke about her daughter’s reliance on Medicaid: “Medicaid literally keeps our daughter alive and well, and it provides her the supports she needs to live her life as independently as possible. Without Medicaid, she would lose the independence she’s fought so hard for.”

Dr. Karen Smith called Medicaid essential throughout a person’s life: “Medicaid is a lifeline from the very beginning right down to the end of life.”

More than three million people in North Carolina receive coverage through Medicaid. In some rural counties, over half of residents depend on NC Medicaid for health insurance. While healthcare costs are rising nationally across private insurance plans, Medicare, and Medicaid programs, increases in costs for NC Medicaid have been slower than national trends during the past four years.

The Department of Health and Human Services informed state lawmakers in May 2025 about additional funding requirements needed to maintain current levels of service in Medicaid. Since then, both DHHS and Governor Stein’s office have provided ongoing updates regarding projected financial needs.

In September 2025, after advocacy by Governor Stein, both chambers of the legislature introduced proposals intended to fund Medicaid fully; however, no final agreement was reached before cuts went into effect on October 1.

Last month Governor Stein sent a letter outlining three potential solutions: full recurring funding at $319 million; partial recurring funding at $190 million with delayed cuts until January 1; or use of non-recurring funds from a $500 million contingency reserve.

The governor has constitutional authority to call extraordinary legislative sessions for specific issues such as this one concerning funding for what is known as the “Medicaid rebase.” The proclamation issued by Governor Stein sets November 17 as the date lawmakers will reconvene to address this matter.

A copy of Governor Stein’s proclamation convening an extra session can be found here.



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