WNC Health Policy Updates

Welcome to the WNC HPI Health Policy Updates Page 

Here you will find brief weekly policy updates relevant to the work of the HPI and Western North Carolina, with a focus on state policies, and a list of state-level health policy resources. Note that this page is updated regularly, and at minimum weekly on Monday mornings. 

WNC & Health Policy Scan of NCGA
2025-2026 Legislation Session

June 29, 2026

This week’s updates include:

  • Passage of the North Carolina State Budget:The North Carolina General Assembly successfully approved its first comprehensive state budget in nearly three years. The spending package has transitioned to Governor Josh Stein for final signature or veto.

  • 2026 West Health-Gallup Healthcare Affordability Index. The 2026 West Health-Gallup Affordability Index reveals that U.S. adults' ability to afford healthcare has hit a five-year low, with only 49% of Americans now considered "cost secure." This decline is driven by rising medical costs, escalating insurance premiums, federal subsidy reductions for the ACA, and rampant inflation outpacing wages.

  • CMS Medicare prior authorization pilot sees mixed results: The rollout of the federal Wasteful and Inappropriate Service Reduction (WISER) six-state pilot program utilizing AI-powered prior authorization to screen 13 medical services for potential fraud and abuse has sparked widespread confusion, prolonged treatment delays, and forced some patients to travel out-of-state for care, and potentially creates financial incentives to deny legitimate medical claims while increasing administrative costs for taxpayers.

  • House Bill 565 (AI Regulation in Healthcare). Legislation has been introduced to create a regulatory safeguard to prevent hospitals and insurers from over-relying on automated algorithms to issue medical denials or artificially inflate Medicaid billing through AI-driven "upcoding,” mandating that qualified human professionals, rather than automated algorithms alone, must make all final insurance denial determinations. Despite these consumer protections, policy analysts note the bill falls short of addressing the underlying corporate incentive structures that reward high volumes of healthcare denials.

  • Buncombe Co. fentanyl mortality rankings. A June 2026 report from the North Carolina Office of the Chief Medical Examiner reveals that Buncombe County now has the fifth-highest fentanyl-related death rate per capita in the state.

  • House Bill 307 (Iryna's Law) results in jail overcrowding and delays substance use treatment. Since the implementation of Iryna’s Law, which alters pretrial release protocols, the Buncombe County detention facility has experienced an average daily population increase of roughly 70 incarcerated individuals compared to last year. Public health advocates warn that this can trap individuals with severe substance use disorders in overcrowded correctional environments rather than channeling them toward medical treatment.

  • NC General Assembly veto overrides in the news:

    • SB 153 – North Carolina Border Protection Act. Mandates that all state and local law enforcement agencies cooperate with federal authorities to enforce immigration policies. Public health experts warn that deputizing local law enforcement creates a profound chilling effect, instilling a fear of state actors that deters immigrant populations from seeking necessary medical care, reporting crimes, or participating in infectious disease tracking.

    • SB 227 and SB 558prohibit Diversity, Equity, and Inclusion (DEI) offices, trainings, and programmatic frameworks within K-12 public schools and higher education, respectively. Public health advocates warn that dismantling these programs actively undermines targeted school-based health initiatives designed to combat chronic student absenteeism and behavioral health disparities, and restricts minority recruitment pipelines and mentorship frameworks in higher ed created specifically to alleviate severe rural physician and nursing shortages.

  • Federal Public Health grant delays and language screening. The federal administration is withholding hundreds of millions of dollars in congressionally appropriated health grants while political appointees vet individual awards for alignment with executive priorities, interrupting critical funding earmarked for 988 suicide prevention networks, public health infrastructure, and local opioid recovery initiatives.

  • House Bill 437. Bars local municipalities from allowing ongoing unhoused encampments on public property and creates strict "drug-free homeless service zones" that elevate minor drug offenses near shelters to felonies. Local officials point out that the legislation imposes costly judicial and policing mandates on local municipalities without providing any new financial resources for shelter beds or permanent housing services.

  • NC Depts. of Health and Human Services and Information Technology have launched a joint rural digital infrastructure initiative to modernize rural medical infrastructure. The multi-year plan aims to bridge rural healthcare gaps by establishing a unified Health Information Exchange data system, facilitating secure clinical record sharing, and providing digital literacy training to tech-isolated rural residents.

  • Federal student loan caps and rural healthcare workforce shortages taking effect in July impose strict borrowing limits near $20,000 for graduate higher education, covering less than half the median annual tuition of standard clinical programs. Advocates warn that this move directly conflict with North Carolina's rural healthcare strategy, which relies heavily on expanding the deployment of advanced practice providers like Physician Assistants and Nurse Practitioners, and will make specialized medical training cost-prohibitive for rural students, severely exacerbating the state's existing workforce shortages.

  • Elevance Health pays $342M to CMS in midst of Medicare Advantage billing probe. In a major federal enforcement action, private insurer Elevance Health was compelled to pay $342 million to settle allegations that it consistently overcharged the government's Medicare Advantage program.

June 22, 2026

This week’s updates include:

  • North Carolina State Employee Vacancies and Low Pay. According to the state auditor, North Carolina faces a critical safety and operational risk with over 9,000 vacant state positions due to underfunded starting salaries.

    • The legislature's ongoing failure to pass timely budgets with cost-of-living adjustments severely hinders the state's ability to attract and retain essential workers.

    • Cutting these positions lightens the budget but, according to Auditor Dave Boliek, leaves critical safety and operational systems vulnerable.

  • North Carolina Senate Bill 1010 (Infrastructure Planning Centralization). Senate Bill 1010 proposes establishing a centralized, state-level committee appointed by top government officials to oversee long-term planning for roads, utilities, and hospitals. While proponents argue this single body will improve coordination and address social determinants of health more effectively, critics warn it strips local control and could create bureaucratic bottlenecks.

  • UNC Health Buncombe County Hospital Proposal. UNC Health has submitted plans to state regulators to build a new 92-bed hospital campus in Buncombe County to offer comprehensive emergency, psychiatric, and specialized medical services. This project is currently entering the state's competitive Certificate of Need review process while UNC Health concurrently appeals a prior 2025 regulatory decision regarding regional bed capacity.

  • North Carolina Senate Bill 1040 (Ambulatory and Rehab CON Repeal). Senate Bill 1040 seeks to improve healthcare affordability and access by completely repealing Certificate of Need requirements specifically for ambulatory surgical centers and inpatient rehabilitation facilities. The legislation is currently stalled in the Committee on Appropriations, highlighting a long-standing legislative gridlock surrounding healthcare deregulation.

  • North Carolina State Health Plan Restructuring. The North Carolina State Health Plan Board has initiated sweeping benefit restructurings in response to soaring costs, including upcoming votes on premium hikes and new third-party administrative contracts. The plan is transitioning to a three-tier coverage structure (preferred, access, and out-of-network) to tie state employee care and out-of-pocket costs directly to provider tiers and salary growth.

  • Appalachian Sustainable Agriculture Project (ASAP) Funding. The Appalachian Sustainable Agriculture Project received $400,000 in renewed funding from Blue Cross North Carolina to expand its Farm Fresh Produce Prescription Program. This initiative allows healthcare providers to prescribe tokens for fresh food at local farmers markets, aligning private healthcare investments with regional "food is medicine" public health strategies.

  • Medical Examiner Compensation and Coordinated Walkout. North Carolina medical examiners have not received a pay increase since 2015, remaining at a flat rate of $200 per completed case despite escalating workloads from the opioid crisis. To protest this low pay, medical examiners across 20 counties launched a “coordinated vacation,” threatening to severely stall law enforcement investigations and cause-of-death determinations. Senate Bill 847 was introduced to directly address the medical examiner shortage by legislating fee increases for completed death investigations. However, like broader state budget negotiations, the bill has stalled in the Appropriations Committee with no clear path forward.

  • North Carolina Senate Bill 153 (Immigration Enforcement Mandate). The General Assembly successfully overrode a gubernatorial veto to enact Senate Bill 153, which mandates that state law enforcement agencies undergo training to conduct federal immigration enforcement. Public health advocates warn this policy adds administrative burdens to an understaffed Highway Patrol and may dangerously deter immigrant communities from seeking emergency medical care.

  • Rural Mobile Opioid Treatment Units. The North Carolina Department of Health and Human Services is preparing to deploy six fully certified, mobile opioid treatment centers to deliver methadone and counseling to underserved rural areas. Unlike emergency overdose tools like naloxone, these mobile units operate under strict clinical supervision as a long-term harm reduction strategy for individuals facing transportation barriers.

  • North Carolina Senate Bill 630 (School Mental Health Support). Senate Bill 630 is a stalled legislative proposal designed to allocate $50 million for public schools to hire mental health professionals and an additional $50 million for a student loan repayment program. The bill targets severe youth mental health shortages by financially incentivizing UNC system graduates to practice in high-need, rural counties.

June 15, 2026

This past week’s updates included:

  • Federal One Big Bill Act (Medicaid Work Requirements & Administrative Changes). The federal "One Big Bill Act" introduces sweeping administrative modifications to Medicaid, including the implementation of strict work reporting requirements—demanding at least 80 hours a month of employment, schooling, or volunteering—and increasing eligibility renewals to twice a year. In response, North Carolina’s Medicaid leadership is leveraging the Government Data Analytics Center (GDAC) to automatically import data from various state agencies to streamline eligibility determinations and ease administrative burdens for eligible participants and county DSS offices.

  • Center for Medicaid Services (CMS) "Medically Frail" Exemption Rule. On June 3rd, the Center for Medicaid Services (CMS) released a lengthy policy document that shift eligibility from a simple diagnosis-based classification to one requiring strict proof of a functional inability to work. This change makes it significantly harder for county health departments to verify exemptions and for vulnerable populations to keep coverage..

  • North Carolina House Bill 696 (Medicaid Rebase Bill). Signed into law in late April, House Bill 696 establishes the state's "Medicaid rebase," the funding necessary to cover Medicaid through the end of the year in the absence of a fully passed state budget. This bill bans the use of self-attestation as sole proof of Medicaid eligibility, and rolls back previously extended state coverage for an estimated 27,000 lawfully present immigrant pregnant women and children starting in October.

  • North Carolina House Bill 1076 (Innovations Waitlist Reduction Act). Introduced in April, House Bill 1076 proposes redirecting state funds away from private school vouchers for high-income families to provide $240 million for 6,635 new Innovations Waiver slots. The goal is to drastically reduce a years-long waitlist for home and community-based services for individuals with intellectual and developmental disabilities.

  • North Carolina Senate Bill 978 (Hospital Transaction Review & Whistleblower Protections). Filed on April 30th, Senate Bill 978 grants state officials the authority to review major hospital transactions, caps nonprofit hospital CEO pay, and restricts employee non-compete clauses. It also establishes robust whistleblower protections for healthcare staff, inspired by past corporate retaliation issues at Asheville's Mission Hospital.

  • The Dissolution of the Federal SAVE Student Loan Repayment Plan. Following federal court blocks, the income-driven SAVE repayment plan was terminated, forcing millions of borrowers to transition to alternative payment structures. Policy experts warn that losing this affordable repayment pathway adds regional financial strain and may deter students from entering the healthcare field during an active workforce shortage.

June 8, 2026 

This past week included: 

  • NCDHHS announced $10 million in EMS workforce investments through the NC Rural Health Transformation Program. The funding will support 39 local EMS agencies and expand Mobile Integrated Health programs that connect residents with behavioral health, substance use, and preventive services outside of traditional emergency settings.

  • House Bill 1104, Improve IVC Process and Enhance Public Safety, continues moving through the General Assembly and would expand coordination, reporting, and oversight within North Carolina's involuntary commitment system. 

  • A new national report identified five North Carolina rural hospitals as being at risk of closure. The analysis, produced by the Center for Healthcare Quality and Payment Reform, highlights ongoing challenges related to staffing shortages, reimbursement pressures, and financial instability. 

  • NCDHHS announced that approximately $121 million in assistance will be distributed during the first round of 2026 SUN payments. The program helps families purchase food during summer months when school meals are unavailable and serves as one of the state's largest seasonal food security initiatives.

  • State employees and retirees may see changes to health insurance costs under proposals from the State Health Plan. Current discussions would increase premiums for some Medicare Advantage retirees while potentially lowering costs for certain active employees. The proposals reflect ongoing efforts to address long-term financial pressures facing the State Health Plan.

  • Bills to Watch

    • House Bill 1104

      • Purpose: Would expand coordination, reporting requirements, and system oversight related to North Carolina's involuntary commitment process.

      • Current Status: Continues moving through the General Assembly following recommendations from the House Select Committee on Involuntary Commitment and Public Safety.

  • House Bill 730

    • Purpose: Addresses data center development, utility planning, and energy infrastructure requirements, including provisions related to future power generation and resource use.

    • Current Status: Advanced through the House.

  • House Bill 1115

    • Purpose: Expands North Carolina's cooperation with federal immigration enforcement through additional 287(g) participation requirements for local agencies.

    • Current Status: Under continued legislative consideration, with advocates and researchers debating potential implications for healthcare access, community trust, and public health outcomes

June 1, 2026 

This past week included:

  • Title X funding uncertainty continued to draw national attention. Title X is the nation's only federal program dedicated to family planning and reproductive health services, supporting contraception, STI testing, cancer screenings, and preventive care for low-income patients. Health advocates warn that funding disruptions could reduce access to care, particularly in rural and underserved communities where safety-net providers play an important role.

  • Recent reporting from North Carolina Health News found that families often face significant legal and financial barriers when pursuing neglect or abuse claims against nursing homes. As a result, enforcement of quality standards frequently depends more on regulatory oversight and inspections than on litigation outcomes.

  • CMS finalized updates to the federal Independent Dispute Resolution process under the No Surprises Act. The rule largely affects how insurers and healthcare providers resolve payment disputes behind the scenes and does not change existing protections against surprise medical bills. 

  • Families preparing for the next school year are encouraged to complete required kindergarten health assessments. North Carolina law requires children entering school for the first time to receive a health assessment and submit documentation before attendance. These visits also provide opportunities for immunizations, developmental screenings, and other preventive services before the school year begins.

HPI & WNC-Relevant State Policy Updates and Resources

Read below for weekly updates on state-level policies relevant to the WNC HPI and Western North Carolina. The following updates employ the use of generative AI tools, and are edited and analyzed to reflect real-time policy changes and decisions.

For further analysis, tune into the accompanying WNC HPI weekly Health Policy Updates podcast.

Click here for more NC Policy News Resources.

Past Updates

North Carolina Policy News Resources

Check out these resources for more information on health policy in North Carolina.

North Carolina Health News

Founded in November 2011 as a North Carolina nonprofit, NCHN is an independent news organization devoted to covering health care in the state. Their mission is to fill the widening gap in media coverage by creating a substantive website that will provide crucial information about health care in North Carolina. 

https://www.northcarolinahealthnews.org/ 

NC News Room

The North Carolina Newsroom is a journalism collaboration expanding state government news coverage for North Carolina audiences, reporting stories that matter in communities served by public radio stations WFAE, WFDD, BPR, WHQR, and WUNC.

https://www.wunc.org/tags/nc-newsroom 

NC State Policy Watch

The North Carolina Justice Center’s mission is to eliminate poverty in North Carolina by ensuring that every household in the state has access to the resources, services, and fair treatment it needs to achieve economic security.

https://www.ncjustice.org/projects/nc-policy-watch/ 

North Carolina Department of Health and Human Services (NC DHHS) Press Release Page

View recent and search all press releases by the NC DHHS.

https://www.ncdhhs.gov/press-releases 

North Carolina Healthcare Association - News Page

NCHA represents North Carolina’s individual and multi-hospital health systems — teaching, rural, small community, suburban, specialty, and continuing care facilities — providing acute care, rehabilitative, behavioral, psychiatric and veterans’ services.

https://www.ncha.org/news/ 

Carolina Forward

Carolina Forward is an independent, non-partisan, non-profit policy organization that advocates for ideas, policies and values to build a stronger North Carolina that works for all its people.

https://carolinaforward.org/legislature/