Big Changes At State Health Plan

The health plan for more than 600,000 North Carolina state employees - including teachers and retirees - is undergoing a major shift. Recently-approved legislation raises premiums slightly, but also gives the state treasurer responsibility for the plan. Previously, the health plan has been run by an executive administrator who answered to the General Assembly. Health policy analyst Adam Linker of the NC Justice Center says lawmakers didn't seem to have enough time to properly oversee the multi-billion dollar plan. The new arrangement will include more "best practices" says Linker. "Maybe with model practices, the state health plan could be self-sufficient with premiums and payouts and balancing all that stuff, as opposed to running it into the ground every couple of years and having to have taxpayers come and rescue it, which is what's happened for the past decade," says Linker. In 2008, lawmakers had to patch a $250 million gap. This year, it was $515 million. An audit also found Blue Cross Blue Shield had been awarded the lucrative right to administer the health plan without a competitive bid process. The state health plan will fully transition to the state treasurer's office in January. Meantime, the treasurer has appointed Lacey Barnes as the plan's interim executive administrator. A nationwide search to fill the position will soon be underway.