McCrory: Medicaid costs making budget deal harder

Posted July 17, 2013

— As House and Senate negotiators try to hammer out a two-year spending plan, Gov. Pat McCrory said Wednesday that soaring Medicaid costs are endangering the viability of any budget proposal.

"Since I did my budget three months ago ... we've had over $535 million of additional spending that was outside of projections made by last year's administration and legislature," McCrory said during a meeting of his Economic Development Council. "That's basically busted our budget already."

Lawmakers are well aware of the expanding Medicaid budget, including more money in their budget proposals and even an extra $45 million in the continuing resolution approved to keep government running through July.

Devoting extra money to Medicaid means less for education, transportation and other state programs, McCrory said.

"That's a pretty big hit, and thank God, the (fiscal) year ended July 1," he said. "But if we think that's going to end next year, we're fooling ourselves unless we make major reform in Medicaid."

McCrory in April rolled out his plans to shift Medicaid over to managed-care providers to better lock in state costs. Federal and state legislative approval would be needed for any changes.


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  • uBnice Jul 18, 2013

    Is it too late to ask the Federal Government to give NC a mulligan on the Medicaid offer?

  • danparker50 Jul 18, 2013

    It's unfortunate that the media in NC keep repeating the Republican talking points about "Medicaid costs." The citizens need to know that the problem isn't Medicaid costs, the problem is the Republican agenda.

  • HeadsUp Jul 18, 2013

    Just wait until Governor McCrory's struggling Medicaid payment system flops.

    See this Medicaid lawyer's blog:

  • jackjones2nc Jul 18, 2013

    I'm very disappointed in McCrory, Tillis, and Berger. It seems it's improbable this was an oversight, and just as unlikely they'll modify their tax cuts for the wealthiest. Sad to see Republicans attacking struggling families to benefit the wealthiest.

  • rebelbelle Jul 18, 2013

    Then where are the proposals to reduce the number of peope on Medicaid? Oh, I forgot--those folks vote (if they can get the appropriate ID

  • 42_wral_mods_suck_i'm_gone Jul 18, 2013

    "Medicaid costs making budget deal harder"

    Well you were the genius that refused the Medicaid money. Also I'm sure your big tax breaks to the top 20% had something to do with the budget shortfall.

  • billsmith98 Jul 18, 2013

    McCrory is a one and done Gov, he is overwhelmed...

  • unc70 Jul 17, 2013

    Cutting the unemplyment insurance means that those people will be applying for other programs sooner. In many cases, you aren't eligible as long as you were drawing unemployment. Another Oops!

  • TomnRR Jul 17, 2013

    McCrory ruin this state? Looks like Bev beat him to it.

  • 2coolkids Jul 17, 2013

    In 2011 the Republican-led NCGA intentionally underfunded Medicaid. They even overroad Perdue's veto to do it. And they are refusing the expansion. This is their mess. And they are lamely trying to use it as an excuse to cut education and privatize Medicaid...which they were going to do anyway...because they hate public schools and hate Medicaid.