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Union County warns HR1 changes could shift Medicaid/FNS costs to counties
Summary
County staff said HR1’s administrative cost changes reduce federal matching for local FNS and Medicaid administration and could raise county costs sharply in October unless the state intervenes; staff warned of potential statewide error‑rate penalties that would be applied to counties.
County budget staff told commissioners that technical changes under federal HR1 will cut the federal administrative share for Food and Nutrition Services and related eligibility work, creating what staff called an "administrative cliff" that takes effect this October.
Staff explained the mechanics: historically the federal government covered roughly half of the administrative costs for these programs in North Carolina’s…
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