North Carolina Extends Medicaid Rate Floor to 2027

RALEIGH, North Carolina—Both chambers of the North Carolina General Assembly approved a one‑year extension of the state’s Medicaid rate floor, moving its expiration from June 30, 2026, to June 30, 2027. HB 696 was signed into law by Governor Josh Stein according to an announcement from the American Association for Homecare (AAHomecare).

“This extension builds on a success for North Carolina providers first achieved in 2021, when the state enacted Senate Bill 594 to establish a Medicaid rate floor for DMEPOS (durable medical equipment, prosthetics, orthotics and supplies),” the organization said. “That legislation, with significant support from our team, set reimbursement at 100% of the lesser of a supplier’s usual charge or the maximum allowable Medicaid fee‑for‑service rate. The five‑year protection, effective July 1, 2021, ensured that Medicaid Managed Care organizations could not cut DMEPOS reimbursement below sustainable levels.”

AAHomecare said it worked closely with Dick Carlton, Atlantic Coast Medical Equipment Services Association’s lobbyist, and Hampton Billups with Checkmate, who was retained by Aeroflow Health.

The organization added this progress is part of a broader national push to strengthen Medicaid reimbursement protections.