North Carolina State Health Plan Faces $507M Deficit, Teachers Worry About Premium Increases
A huge $507 million shortfall hangs over North Carolina’s State Health Plan, raising fears of big premium hikes for its 750,000 members. If nothing changes, this gap could grow to $1.4 billion by 2027.
Monthly premiums might jump $30, with new income-based rates being considered. Under growing money pressure, the State Health Plan Board of Trustees voted to move forward with income-based premium changes.
What Could Happen to Premiums?
The impact will spread to state workers, teachers, and retirees across North Carolina. One backup plan remains, a money-saving plan with higher personal deductibles, though officials say this is just a fallback option.
The Board needs to decide on premiums by Summer 2025. Switching from Blue Cross Blue Shield to Aetna made money matters worse, pushing more expenses to members.
The real impact hits home. Take Erin Boyd Odom: She paid $5,000 for her child’s surgery under the current plan, showing what bigger costs could mean. “The out-of-pocket costs and co-pays are going to be increasing exponentially at a time when salaries aren’t even keeping up with inflation,” she told The Charlotte Observer, after seeing the proposed changes to the state health plan. “Even with my salary, things are still tight.”
The Clear Pricing Project, designed to cut costs, isn’t working well as fewer providers take part. To fix budget gaps, the Board looks at options from pushing generic drugs to cutting retiree benefits.
This hits particularly hard in a state where teacher pay is already low. North Carolina ranks 38th nationwide in average teacher pay and 42nd for starting salaries.
While Watkins suggests private healthcare provider deals could help cut costs, the Board keeps looking for ways to fix this growing money problem.
