North Carolina
North Carolina government is incentivizing hospitals to relieve patients of medical debt
North Carolina state government is seeking to rid potentially billions in medical debt from low- and middle-income residents by offering a financial carrot for hospitals to take unpaid bills off the books and to implement policies supporting future patients.
Democratic Gov. Roy Cooper’s administration unveiled Monday a plan it wants federal Medicaid regulators to approve that would allow roughly 100 hospitals that recently began receiving enhanced federal Medicaid reimbursement funds to get even more money.
But to qualify an acute-care, rural or university-connected hospital would have to voluntarily do away with patients’ medical debt going back ten years on current Medicaid enrollees — and on non-enrollees who make below certain incomes or whose debt exceeds 5% of their annual income.
Going forward, these hospitals also would have to help low- and middle-income patients — for example, those in a family of four making no more than $93,600 — by providing deep discounts on medical bills incurred. The hospitals would have to enroll people automatically in charity care programs and agree not to sell their debt to collectors or tell credit reporting agencies about unpaid bills. Interest rates on medical debt also would be capped.
Cooper said the plan has the potential to help 2 million people in the state get rid of $4 billion in debt, much of which hospitals are never going to recoup anyway.
“Large medical bills from sickness or injury can cripple the finances of North Carolinians, particularly those who are already struggling,” Cooper said in a news release. “Freeing people from medical debt can be life-changing for families, as well as boost the overall economic health of North Carolina.”
Other state and local governments have tapped into federal American Rescue Plan funds to help purchase and cancel residents’ debt for pennies on the dollar. North Carolina’s proposed initiative would be different by creating a long-term solution to debt, state Health and Human Services Secretary Kody Kinsley said.
“We really wanted to create a more sustainable path forward and not just be one-and-done, but to keep it going,” Kinsley said in an interview.
North Carolina legislators last year created the enhanced Medicaid reimbursement payments for hospitals — called the Healthcare Access and Stabilization Program —alongside provisions that expanded Medicaid coverage in the state to working adults who couldn’t otherwise qualify for conventional Medicaid. More than 479,000 people already have enrolled for the expanded Medicaid offered since last December.
Cooper’s proposal doesn’t require a new state law and won’t cost the state any additional funds, but the U.S. Centers for Medicare and Medicaid Services must approve the Healthcare Access and Stabilization Program changes. Kinsley said he believes regulators will be “aggressive in their approval.” Cooper’s administration wraps up at year’s end, since he’s barred by term limits from reelection.
To sweeten the deal, the financial possibilities for hospitals in the debt program that agree to debt alterations appear rich. The state Department of Health and Human Services said hospitals that choose to participate would be eligible to share funds from a pot of up to $6.5 billion for next year. Those who don’t can share from $3.2 billion.
The effort also will depend on the willingness of the state’s hospitals to participate. Kinsley said he didn’t know where the North Carolina Healthcare Association — which lobbies for non-profit and for-profit hospitals — stands on the effort, and that it wouldn’t participate in a public announcement later Monday.
And the debt relief wouldn’t begin right away, with consumers benefitting in 2025 and 2026, according to state DHHS.
Republican State Treasurer Dale Folwell has questioned the commitment of the state’s largest nonprofit hospital systems to treat patients who are poor at free or reduced rates. The N.C. Healthcare Association has pushed back at Folwell, promoting their members’ charity-care efforts and other contributions to communities they serve.
A group called Undue Medical Debt that’s assisted other governments with cancelling medical debt, also would work on North Carolina’s effort, DHHS said.
North Carolina
Businesses worry of potential impacts as Marion tightens water restrictions amid drought
MARION, N.C. (WLOS) — The City of Marion is tightening water restrictions as drought conditions persist across western North Carolina, prompting local businesses to prepare for possible impacts on daily operations.
The drought monitor released on Thursday, May 14, shows that extreme drought now covers 90% of western North Carolina.
ASHEVILLE IS MORE THAN 7 INCHES BELOW AVERAGE RAINFALL THIS YEAR, DATA SHOWS
As the region continues moving into a hotter and drier pattern, the City of Marion officials announced Stage Two water shortage restrictions less than a month after issuing a Stage One Water Advisory.
Businesses in Marion said the quick escalation is raising concerns about what could come next if drought conditions persist.
“They put us in stage one at the end of April and already it’s not through, it’s not the end of May and they’re already putting us in stage two,” said Barbara Brown, owner of Bruce’s.
Under the Stage Two restrictions, watering lawns, gardens and golf courses will be prohibited. Washing cars, filling residential swimming pools and serving water in restaurants except upon request will not be allowed.
Brown said her restaurant is already taking steps to conserve water.
“We check the bathrooms often to make sure people have turned the water off because we have found from time to time, people leave them running,” she added.
She said she worries stronger restrictions could eventually force businesses to make bigger operational changes.
“I’m concerned that eventually we might have to go to paper plates, paper cups, silverware,” Brown said.
Other businesses are also considering adjustments.
Kat Garner, a tattoo artist at Blue Ridge Tattoo, said water shortages could affect how the shop operates day to day.
LEADERS URGE WATER CONSERVATION AS DROUGHT DEEPENS ACROSS WESTERN NORTH CAROLINA
“We would definitely be reduced to using distilled water for everything, which would become harder if everyone’s buying it out, so that would definitely make things a little bit more difficult,” Garner said.
The Stage Two water restrictions are set to begin Friday, May 15, at 8 a.m. and will last until further notice.
North Carolina
Police: North Carolina man charged after high-speed chase in Erie County, arrested in the Town of Perry
PERRY, N.Y. — A North Carolina man is in custody after a chase that started in Erie County and ended with an arrest in Perry.
Wyoming County Sheriff’s deputies say Ericson Vasquez-Moran, 22, rammed a Border Patrol vehicle in Erie County around 11:30 p.m. Tuesday before taking off. The suspect was spotted in Warsaw on Route 20A, but a chase was called off due to high speeds.
Then around 2:30 a.m. Wednesday, deputies say Vasquez-Moran called 911 from Perry to surrender.
He’s charged with speeding, failure to keep right, unlawful fleeing a police officer, reckless driving, and reckless endangerment in the second degree.
Vasquez-Moran was given an appearance ticket for the Village of Warsaw Court and was released to the custody of the United States Border Patrol.
ASHEVILLE, N.C. (WLOS) — After nearly two hours of public comment, the Asheville City Council unanimously denied a proposed affordable housing complex off Caribou Road—despite the city’s ongoing housing crisis.
The proposal, submitted by developer Pennrose, would have brought 100 affordable housing units to a nearly 10-acre site in the Shiloh neighborhood.
“I’m going to vote against affordable housing tonight, and that’s not a norm for me,” said Asheville City Councilmember Sage Turner.
AFFORDABLE HOUSING PROJECTS MOVE FORWARD ACROSS WESTERN NORTH CAROLINA
News 13 asked Vice Mayor Antanette Mosely why the city would deny this project amid a housing crisis in Asheville.
She said, in a statement, “I absolutely believe Asheville needs more affordable housing, and I have consistently supported housing projects across the city. But not every site is appropriate for every project.”
Residents who opposed the project said they were not against affordable housing itself, but believed the development was too large for the area.
MAY 13, 2026 – The Asheville City Council unanimously denied a proposed affordable housing complex off Caribou Road—despite the city’s ongoing housing crisis. (Photo credit: WLOS Staff)
“The access is too narrow, there was only one access point, the streets are too narrow, we’ve got a big problem with traffic here,” said Shiloh resident Scott Raines.
“Perhaps the only thing that I consider as a dead stop for affordable housing is if people are going to be injured or possibly die from the traffic that’s created,” Michael Boses, another resident, said.
ASHEVILLE PROPOSES PROPERTY TAX RATE INCREASE TO CLOSE $8.9M BUDGET GAP
The Shiloh neighborhood, established in 1870, is one of Asheville’s last historically Black communities. Several council members said preserving the area’s legacy factored into their decision.
“My vote for no is because I feel hyper protective of our legacy neighborhoods, I feel hyper protective of Shiloh,” Turner said.
Pennrose responded to the denial in a statement, saying: “While we are disappointed in the Council’s decision concerning the rezoning application at Caribou Road, we respect the community’s interest in preserving the character of legacy neighborhoods.”
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