North Carolina Budget Impasse Is a Setback for Health Insurers

  • A split paralyzing state funds delays $6 billion in contracts
  • GOP lawmakers and Democratic Governor divide over Medicaid

The great seal of North Carolina is seen outside the state legislature building in Raleigh.

Photographer: Al Drago/CQ-Roll Call Group
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A months-long budget standoff in North Carolina has turned into a headache for health-insurance companies counting on $6 billion in contracts from an ambitious revamp of the state’s Medicaid program.

A high-profile plan to switch 1.5 million North Carolinians into private Medicaid managed-care health plans was supposed to begin in November. The effort to transform the state’s safety net for low-income residents drew national attention for innovative experiments to promote preventive health and address social needs.