North Carolina legislative leaders announced they have struck a deal to expand access to Medicaid for hundreds of thousands of additional low-income state residents through Obamacare, an agreement that comes after years of debate.
House Speaker Tim Moore and Senate leader Phil Berger, both Republicans, said they have reached a compromise that is expected to pass the state's General Assembly as early as this month, which would levy assessments on hospital revenue to pay for the state's 10% share of the federal and state program that assists with healthcare costs for people with limited income and resources. The hospitals, in turn, would benefit from reimbursements for covering patients with Medicaid.
Under Obamacare, the federal government covers the remaining 90% of the cost of Medicaid recipients under expansion. The state could also be eligible for additional federal subsidies offered through the American Rescue Plan Act of 2021 if it passes an expansion bill.
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"This is something that we can all be very proud of,” Moore said at a news conference Thursday, according to the Associated Press. “What a huge announcement this is for North Carolina. What a huge policy direction this is that will provide help for so many in this state, but it’s going to do it in a way that’s fiscally responsible.”
North Carolina is one of 11 states that have not adopted Medicaid expansion, and the legislation could mean that roughly 600,000 more people in the state would be eligible. The announcement marks a milestone after efforts to pass Medicaid expansion legislation last year stalled, with both chambers unable to come to an agreement on whether to attach other healthcare reforms to the legislation.
The agreement would also revise certificate of need laws, which require healthcare providers to get approval from government regulators to add or expand their services or facilities.
Gov. Roy Cooper (D-NC), who has supported Medicaid expansion efforts since taking office in 2017, called the agreement "a monumental step that will save lives."
"Since we all agree this is the right thing to do, we should make it effective now to make sure we leverage the money that will save our rural hospitals and invest in mental health. I look forward to reviewing the details of the bill," Cooper said in a statement.
Some opponents of Medicaid expansion have suggested that it would raise premiums for those with private insurance. If the General Assembly passes the Medicaid expansion bill it is not expected to take effect until after a state budget is passed and enacted, which could not be until later this summer.
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The news comes as millions of people enrolled in Medicaid coverage may be removed as early as April for not being eligible for the program due to their income or other circumstances after lawmakers reached a deal in last year's omnibus to unwind a pandemic-era policy that required states to offer continuous coverage for Medicaid enrollees until the end of the COVID-19 public health emergency. The Biden administration has since announced it plans to let the public health emergency end on May 11.