North Carolina reimbursement cuts blocked by court

Recent court rulings in North Carolina have temporarily halted planned Medicaid reimbursement cuts affecting key behavioral and personal care services. These decisions provide immediate relief to providers and recipients, while highlighting the ongoing challenges of balancing state budget constraints with access to essential Medicaid-funded supports.

Legal challenges pause autism therapy cuts

In late 2025, a Wake County judge issued an injunction stopping reductions in Medicaid reimbursements for autism therapy. The court found that cutting funds for behavioral treatments targeting children with autism could cause irreparable harm and potentially discriminate against vulnerable populations. This ruling underscores the critical role of Medicaid in supporting specialized therapies within the IDD community.

Freezes on personal care services continue

Shortly after, an administrative law judge extended the freeze on proposed cuts to personal-care services provided in adult care homes. These services, which include assistance with activities of daily living such as feeding, bathing, and mobility, remain essential for many adults with disabilities. The court maintained this injunction into early December, allowing litigation to advance without immediate changes to reimbursement rates.

Implications for providers and state budgets

The legal blocks create a temporary safeguard for those relying on Medicaid-funded autism and personal care services but also intensify budgetary pressures on North Carolina. With funding freezes in place, the state faces increased financial strain amid broader Medicaid shortfalls. The outcomes of this litigation may influence not only North Carolina’s policies but also serve as a reference point for other states managing similar Medicaid funding challenges.Providers and agencies in the IDD sector should continue monitoring these developments carefully. The evolving legal landscape affects compliance, agency growth strategies, and service planning, particularly as court decisions could shift reimbursement frameworks in coming months. Understanding the scope of services currently protected by the injunctions will be critical for operational stability during this period of uncertainty.