RALEIGH, N.C. — Gov. Josh Stein on Thursday called for lawmakers to return to Raleigh on Nov. 17 for a special session to shore up Medicaid funding in order to reverse cuts that his administration put in place Oct. 1.

In North Carolina, the governor can call an extra — or special — session to address limited matters.

Lawmakers in the GOP-led legislature were last in Raleigh at the end of October but failed to reach a deal on a state budget, which was due by the end of June, or on Medicaid funding. Republican leaders indicated then it could be their last session of the year.

Saying cuts were unavoidable without more funding from lawmakers, the state Department of Health and Human Services last month reduced Medicaid reimbursements to health care providers by 3% — with cuts as high as 10% for some providers. DHHS also ended Medicaid coverage of GLP-1 drugs like Wegovy when used for weight loss.

At a news conference Thursday, Stein said the last time he spoke with lawmakers about Medicaid funding was last week.

“It didn’t go as well as I wanted it to go,” Stein said.

“Both chambers agree that Medicaid is not fully funded. Both chambers agree that we need more money and how much money to get. But what they cannot do is come to (an) agreement on a bill because of a dispute on an unrelated issue,” he said, referring to the Senate wanting to tie Medicaid funding to money for a new children’s hospital.

He said he was on the side of the Senate in supporting the hospital, but “this is not the time or place to fight that fight — that fight should stay in the overall budget negotiations. It is time to fund Medicaid, because if they fail to do so, people are suffering, and it is unacceptable.”

DHHS used roughly $500 million provided by the General Assembly earlier this year to cover the Medicaid rebase, the funding needed for program cost fluctuations. But it said that wasn’t enough. Another $100 million was used for other Medicaid needs, including administrative needs.

Republican leaders have backed raising Medicaid funding to about $690 million, but the House and Senate have been unable to reach an agreement. Senate leaders want to include funding for the children’s hospital, which was agreed to in negotiations in 2023.

House leaders have questioned the children’s hospital funding and sought to keep that issue tied to broader budget talks. Both chambers have passed competing Medicaid funding bills but have not taken up the other’s version.

Republicans have accused Stein and DHHS of moving too quickly and of cuts being politically motivated. They’ve also said the cuts could have been delayed while negotiations continued. Stein has countered that the agency had already postponed cuts, and that waiting further would force steeper reductions later.

Stein’s call for a special session is the latest in a series of appeals from the Democratic governor for more Medicaid funding from Republican lawmakers who control the purse strings.

Asked if he expected any breakthrough during the special session, Stein said, “Let’s pray,” and called on people to reach out to lawmakers.

DHHS has said that North Carolina could run out of Medicaid funds as early as April without cuts now.

DHHS Secretary Devdutta Sangvai said it was “hard to quantify” how many providers will stop serving Medicaid patients because of the cuts, but he said DHHS has received emails from large medical practices that have given specific dates for when they plan to exit Medicaid — with many indicating they will stop accepting patients at the end of this month.

More than 3.1 million North Carolinians receive health coverage through Medicaid.

One of them is Demi Eckhoff, who said Medicaid is “critical” to her health and independence. Born with a rare form of muscular dystrophy, she works as a registered dietitian serving patients with disabilities while pursuing a doctoral degree in public health.

She said direct support professionals help her with daily activities — including eating, getting around, going to the bathroom and using her wheelchair. “More importantly, they help me be a productive citizen in my community,” she said, adding that losing those supports “threatens my independence” and could force her back into a hospital.

Stein’s predecessor, Gov. Roy Cooper, also used the power to call lawmakers back in 2017 over redistricting. But legislators canceled the session, arguing it was unconstitutional because of an existing court order on redistricting and saying there were no “extraordinary circumstances” requiring a return.

Lauren Horsch, spokesperson for Senate leader Phil Berger, said in a statement that “Gov. Stein’s self-inflicted ‘crisis’ is not an extraordinary occasion by any measure. Now that the courts have stepped in to block some of his politically motivated cuts, he’s attempting a new stunt to pass the buck. The General Assembly appropriated $600 million to the Medicaid rebase, and instead of prioritizing funding for services, Gov. Stein decided funding bureaucracy was more important.”

This week, a Wake County judge temporarily paused Medicaid rate cuts for one kind of care — applied behavior analysis therapy for children with autism, which faced the maximum 10% reduction — while a lawsuit over the changes proceeds. DHHS said it will comply with the order

House Speaker Destin Hall’s office issued a news release calling the Stein administration’s cuts “unprecedented,” and pointing to three House-passed bills to provide additional funding for Medicaid.

The release says House leaders have called on Stein and DHHS to halt the cuts, and that looking ahead, the House “remains willing to work collaboratively with the administration to monitor Medicaid spending through the fiscal year and, if necessary, appropriate additional funds to close any verified shortfall.”

“The House has done its job to fund Medicaid with clean bills and is prepared to do more if needed,” Hall said in the release. “We need to resolve this matter quickly to protect patients, support providers and ensure the long-term stability of North Carolina’s Medicaid program.

“Until recently, the General Assembly has worked with the executive branch to provide funding to Medicaid, while also monitoring the program’s integrity. The administration should have continued that practice,” Hall said.

Senate Democrats said in a news release that they were ready to return to Raleigh, with Minority Leader Sydney Batch saying they fully support the call for a special session and that “the funding is urgent.”

“At the same time, we’re now 129 days into a new fiscal year without a state budget. Senate Democrats have been ready to govern from day one in order to pass a responsible budget that invests in working families. But instead of doing their jobs, Phil Berger and Senate Republicans have chosen months of delay and dysfunction,” she said in the release.

House Minority Leader Robert Reives said in a news release that “North Carolinians are hurting right now because of cuts to Medicaid that were entirely preventable. The North Carolina House, Senate Democrats and Governor Stein are all willing to negotiate and ensure this problem gets solved. Senate Republican Leadership can break this logjam by coming to the table.”

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