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Home»News»States reduce Medicaid provider payments long before Trump cuts
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States reduce Medicaid provider payments long before Trump cuts

healthtostBy healthtostSeptember 22, 2025No Comments6 Mins Read
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States Reduce Medicaid Provider Payments Long Before Trump Cuts
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Every day for almost 18 years, Alessandra Fabrello has been a medical care for her son, beyond being his mom.

“It is almost impossible to explain what it takes to keep a child alive who should be dead,” said Fabrello, whose son, Ysadore Maklakoff, has experienced a rare brain condition called acute necrotic encephalopathy at 9 months old.

Through North Carolina’s Medicaid program, Maklakoff meets the conditions for a large medical care at the Chapel Hill family home. Fabrello said it works with staffing organizations to organize services. He also learned to give care usually performed by a doctor, a specialized nurse or a well -trained therapist because he often cannot get help.

Now, wide cuts in North Carolina Medicaid will make the finding and paying for care even more difficult.

At national level, states are trying to close budget shortages and monitor Medicaid, generally one of the highest expenses of a state-even before President Donald Trump’s tax law reduces federal spending on Medicaid by about $ 1 trillion in the next decade.

North Carolina and Idaho have already announced plans to reduce Medicaid payments to healthcare providers, including hospitals, doctors and carers.

In Michigan and Pennsylvania – where legislators have not yet passed budgets this year – Medicaid costs are part of these discussions. In the state of Washington, legislators approved cuts in the program that would not affect who is eligible, said Hayden Mackley, a spokesman for the State Financial Management Office.

Medicaid is state health insurance for people with low incomes or disabilities and state and federal dollars pay for the program.

North Carolina’s Medicaid service announced that it will adopt October 1 at least 3% reduction in remuneration for all providers facing patients with Medicaid. Primary care doctors face a 10% reduction in payments by 10%, according to the Ministry of Health and Human Services of North Carolina.

Fabrello said her son’s dentist already called on to say that the office would not accept Medicaid patients coming in November. Fabrello fears that dental work will become another service that her son meets the conditions, but she cannot get because there are not enough providers who accept Medicaid coverage.

Professional therapy and speech therapy, nursing care and rest care are all difficult or impossible to reach, he said. In a good week, her son will take 50 hours of specialized nursing care from the 112 hours of qualifications.

“When you say,” we just cut off the benefit rates, “cut access to him for all his needs,” Fabrello said.

Shannon Dowler, a former chief of North Carolina Medicaid, said reduced payments to dentists and other providers will reduce the number of providers on the state’s Medicaid network and will lead to “immediate loss of access to care, worse results and cause higher costs”.

The forthcoming cuts in North Carolina “have nothing to do” with the new federal law that reduces Medicaid funding, Dowler said.

“This is like the onion layers,” he said. “We are in pain in North Carolina in front of the game before we need to do this.” Only North Carolina is expected to lose about $ 23 billion in federal Medicaid dollars in the next decade.

More than 3 million northern Carolinians are registered on Medicaid. State legislators who had a deadlock agreed to a mini budget in July to continue funding state programs that gave Medicaid to $ 319 million less than it requested. Legislators can choose to restore Medicaid funding for this use, Dowler said.

“We all hope that it will change,” Dowler said, adding that if he does not, “you will see practices that fall to the Medicaid members.”

Every year since at least 2019, North Carolina’s Medicaid service has requested more money than it received from the state legislation. A variety of federal resources, including the money provided to the states during the Covid-19 pandemic, helped bridge the gap.

But these funds are gone this year, leaving the organization with one option: Eliminate some optional parts of the program or force each provider that accepts public insurance to receive a salary cut. The state chose mainly for the latter.

“It’s a difficult time for North Carolina,” said Jay Ludlam, Deputy Secretary of North Carolina Medicaid. The budget cut is “absolutely the opposite direction where we really want to go, we must go, head as a state”.

In the Anita case, which leads a small group of health clinics in North Carolina, cuts find it difficult to take care of the “most vulnerable to our community”.

The three western North Carolina Community health clinics serve about 15,000 patients in and around Asheville, including many non -English tourist workers. The case said he would examine staff, services and contracts to find places to cut.

Idaho has about 350,000 people enrolled in Medicaid. This month, state leaders there responded to a deficit of the state budget of $ 80 million, reducing Medicaid fees throughout the boat.

Wide cuts have sparked reactions from nurses and patients’ defense groups. Leaders of a nursing company have written in a recent newspaper in the Idaho Statesman newspaper that 75% to 100% of funding on their premises comes from Medicaid and cuts will force them to “reduce staff or receive less residents”.

Idaho AJ McWhorter’s spokesman said the state had faced difficult choices. It provides for a 19% increase in Medicaid costs this year.

Toni Lawson of the Idaho Hospitals Union said the financial pressure would be greater in about two dozen small hospitals – those with 25 or fewer beds – tired of the state. Lawson, the head of the organization’s defense manager, said a hospital leader said they had less than two days to pay. Others reported a cash of 30 days or less, he said.

“Hopefully none of them will close,” Lawson said, adding that he expects that working and tradition and behavior units, who often lose money, to be the first to go because of this last state reduction in payments. Several hospitals in mainly rural areas of the state were closed the working and surrender units last year, he said.

At national level, Medicaid is on average 19% of the general costs of a state, second for K-12 costs, said Brian Sigritz, Director of State Financial Studies for the National Association of State Budget Directors.

States generally had a strong increase in revenue in 2021 and 2022 due to economic growth, which included federal assistance to stimulate the economy. Since then the increase in revenue has slowed and some states have reduced income and property taxes.

Meanwhile, spending on Medicaid, Housing, Education and Disaster response have increased, Sigritz said.

In North Carolina, Fabrello was unable to work out of her son’s care. Her savings are almost exhausted, Fabrello said, and was on the brink of financial disaster until North Carolina began to allow parents to be compensated for care duties. He received this income for about a year, he said. Without it, she was worried about the loss of her home.

Now, if state cuts are passing, it is facing a salary cut.

“As parents, we are essential for our children and strive to fight for our survival above it,” Fabrello said.

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