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| | Author: Allison Crumpler, CCC-SLP
The NC Department of Health and Human Services has communicated to all Medicaid Providers about rate reductions due to North Carolina not recieving the anticipated full amount of ARRA/FMAP funds. The General Assembly included a special provision in this year’s budget to deal with any potential budget shortfall created by Congress’ failure to act or actions related to the ARRA/FMAP extension. The legislation instructed the Director of the Budget, the State Treasurer, the State Controller, and other state officials to effectuate extraordinary budget adjustments to the extent necessary to backfill ARRA funding should Congress fail to extend current ARRA/FMAP funding to State.
The General Assembly had expected and included approximately $500 million from ARRA/FMAP funds in the 2010-2011 budget. However, NC will only recieve $343 million. Therefore, DHHS is implementing across the board provider rate reductions. As of September 1, Medicaid Providers will see a rate reduction of 1.35%.
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