On December 10, 2025, the North Carolina Department of Health and Human Services (NCDHHS) announced that recent Medicaid rate cuts for home care providers have been reversed. Rates are being changed back to the levels in place on September 30, 2025.
This follows court rulings that required NCDHHS to undo the rate reductions that began on October 1, 2025.
You can check out the details of the new rates here:
Updated North Carolina Medicaid Rate Reductions Effective Oct. 1, 2025
For home care agency owners, this brings some short-term relief after months of uncertainty.
What Changed?
The October rate cuts were part of an effort to manage Medicaid funding shortages. Due to court decisions, NCDHHS has now fully reversed those cuts and restored former provider rates.
This update replaces all previous guidance related to the October 2025 rate reductions.
Why This Matters
Restored Medicaid rates may help ease immediate pressure on:
- Caregiver pay and retention
- Staffing and scheduling
- Cash flow and short-term planning
While this is positive news, it does not guarantee long-term stability.
The Bigger Picture
Medicaid’s funding challenges remain unresolved.
Key points to know:
- North Carolina Medicaid is short by $319 million
- NCDHHS no longer has rate cuts as a way to manage costs
- Without new funding, Medicaid could run out of money early next year
- Over three million North Carolinians rely on Medicaid services
Although rates are restored for now, financial risk for providers may still be a concern.
What Agency Owners Should Do
- Keep a close eye on cash flow
- Stay involved with industry groups and advocacy efforts
- Prepare for possible future disruptions
- Communicate openly with staff about both the relief and ongoing uncertainty
- Meet with an agency specialist at GEOH to make sure your rates are correct
