House advances Medicaid rebase funding; companion health investment bill also moves

The North Carolina House on Oct. 22 approved measures intended to stave off planned Medicaid rate cuts while lawmakers continue budget negotiations.

House Bill 491, described by Representative Lambeth as a limited rebase measure that "allows the department to use the reserves that they have within the department to actually buffer the amount of money they need to fund the department so we don't have to do the cuts," passed its second reading on a recorded vote of 111-0 and was read a third time and sent to the Senate.

Lawmakers also adopted a House committee substitute for Senate Bill 405, titled the Healthcare Investment Act, which sponsors said would provide funding and rebase numbers to keep provider rates flat through the fiscal year. The substitute passed second reading 109-1 and passed third reading by voice vote.

Supporters emphasized that the measures were intended to protect providers, the direct‑care workforce and the communities that rely on Medicaid services while a comprehensive budget is negotiated. Representative Crawford urged colleagues to "be the hero" for families that would otherwise face service reductions.

Other members said the executive branch also shared responsibility for fiscal management. Representative Willis said providers had been funded through April and called on the governor to "stand up and own" funding decisions; Representative Reuben noted that confidence in continued funding depends on passage of a full budget and reminded colleagues that the legislature has not yet passed one.

House leadership amended the adjournment resolution (House Joint Resolution 10‑16) earlier in the day to permit consideration of budgetary items and Medicaid rebase matters during the floor session.

Both bills were sent to enrollment or back to the Senate as required by procedure. Sponsors and opponents emphasized that the measures are stopgap steps contingent on later budget action.