AN ACT to make medicaid primary care rates equivalent to medicare.

Whereas, primary care plays an indispensable role within the healthcare delivery system and is currently under resourced and facing significant strain; and

Whereas, there is a need to adequately resource primary care services for rural and urban regions, as well as underserved communities; and

Whereas, current Medicaid rates for primary care services in North Carolina are less than Medicare; and

Whereas, in order to improve overall health and access to quality care, maintain provider participation in Medicaid, and prevent future health costs and conditions caused by overall health problems, it is in the best interests of the State to raise Medicaid reimbursement rates paid to primary care providers to rates that are comparable with the Medicare rates; Now, therefore,

The General Assembly of North Carolina enacts:

SECTION 1.(a)  There is appropriated from the General Fund to the Department of Health and Human Services, Division of Health Benefits, the sum of forty‑eight million dollars ($48,000,000) in recurring funds and associated receipts beginning with the 2026‑2027 fiscal year to be used to increase the Medicaid rates paid for primary care services.

SECTION 1.(b)  The rate increases required by this section shall be implemented as soon as practicable after July 1, 2026, and shall apply to primary care services as defined by the North Carolina Primary Care Payment Reform Task Force in its April 17, 2024, report to the North Carolina General Assembly.

SECTION 2.  This act becomes effective July 1, 2026.