(The Center Square) – The board that governs the health care plans for state employees and retirees in North Carolina on Friday passed a series of changes in premiums that will raise costs for some but lower them for others, including families with children.
The goal of the changes was to help wipe out a projected $507 million deficit, first-term Republican state Treasurer Brad Briner told the board.
“Keeping the state health plan viable has been the highest priority since I took office,” Briner told the board. “I walked into the office in January with a half billion dollar deficit. That’s just for 2025. Today, we’re going to take the last step finalizing premiums. I know that few people are going to be happy about that. But it is necessary if we want to have a state health plan in the future.”
The changes were necessary, “Because of the short-sighted decisions of my predecessor,” former treasurer Dale Folwell, Briner told the board.
“Premiums were frozen for years,” Briner said. “Members were led to believe that it could be that way forever.”
But the health plan was spending more money than it took in each year, Briner said.
“That meant cash reserves for the plan were being used to keep prices stable rather than doing the hard work with providers in making adjustments to get better services at lower prices for our members,” Briner said. “Now those cash reserves are nearly gone.”
The Legislature helped this year with a $150 million appropriation for the health care plan, which has been signed into law by first-term Democratic Gov. Josh Stein, Briner said.
Health care providers have also agreed to continue their current levels of service but charge less, the treasurer said.
“Today’s vote represents the final chapter in solving our short-term financial challenges,” Briner said. “It will mean more money from our members. I know you don’t like that. We don’t like it either.”
Under the plan approved Friday, premiums for current employees would be based in part on income rather than a flat rate.
For example, an employee who earns $50,000 or less annually would pay $35 a month for standard insurance while those earning more than $90,000 and above would pay $80 per month.
“If you have family members on the plan with you, the news is even better,” Briner said.
An employee with children making less than $50,000 per year would pay $185 a month, with those making above $90,000 paying $231 a month.
In comparison, rates for insurance under the federal the Affordable Care Act are expected to increase to an average of $670 a month per person, Briner said.
However, representatives of state employee groups criticized the premium increases, particularly because raises for employees next year still have not been decided because of a legislative budget impasse.
“It could have been avoided, and it should have been avoided,” Adris Watkins, executive director of the State Employees Association of North Carolina told the board. “The absolute, abject and gross power of the health care corporate machine is unchecked in this country and absolutely out of control in this state.”
