RALEIGH, N.C. (WTVD) -- North Carolina Medicaid will institute a 5% cut in reimbursement rates for providers starting Wednesday, citing funding shortages.

"(NCDHHS) and North Carolina Medicaid remains short on the amount of money that it needs in order to run the program as we know it. What we intend to do then is to implement the rate cuts (Wednesday). Without a cut to Medicaid of five percent, it feels like there's no alternative at this step at this stage. We've been working with our partners, the health plans as well as the individuals who help us run what is called the fee-for-service program, and we have begun programming the system so that for October 1st, providers will get paid less than they would have been paid in September," said Jay Ludlam, Deputy Secretary for NC Medicaid

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