Court: N.C. must broaden its Medicaid coverage for illegal immigrants RALEIGH (AP) — North Carolina must broaden its Medicaid coverage for illegal immigrants to allow for longer-term treatment of serious health problems, the state Court of Appeals ruled Tuesday. The ruling could expand the kinds of medical treatment that illegal immigrants receive under the Medicaid program. For hospitals that are already treating illegal immigrants, the decision could also mean more Medicaid reimbursements.