In a newly unsealed federal lawsuit, former state workers allege North Carolina health officials used false information to secure federal funding for a Medicaid technology overhaul, and that federal regulators approved money despite red flags. The lawsuit was dismissed but might be revived.
Posted 9/29/2026, 9:09:00 PM
Former North Carolina government workers allege that top state health officials used false information to secure federal funding for a Medicaid technology overhaul, according to a newly unsealed federal lawsuit. The whistleblowers also allege that federal regulators kept approving funds for the state — despite lacking key information typically required for approval.
The claims were made under seal more than two years ago, part of a lawsuit claiming years of mismanagement, noncompliance and misrepresentation among leaders within the state Department of Health and Human Services and regulators at the U.S. Centers for Medicare & Medicaid Services, or CMS.
Other WRAL Top Stories
The federal False Claims Act lawsuit, unsealed this month, has been dismissed — a win for the state. But the whistleblowers say they plan to keep fighting in federal court as they seek to expose what they allege was fraud — even though federal courts said the lawsuit failed to state a valid claim. While the allegations haven’t been proven in court, they provide new perspectives on a project that state and federal officials acknowledge is years behind schedule — delays that are...
Posted 17 minutes ago OREM, Utah — A Utah man has sued political commentator and podcaster Candace Owens for allegedly falsely linking him to the shooting death of Charlie Kirk. In the lawsuit fil...