The North Carolina State Health Plan is facing financial trouble, with State Treasurer Dale Folwell warning that the plan may not be able to stay afloat by fall 2026. The state legislature is withholding the funds needed to keep the plan solvent, leading to uncertainty and concern about the future of the plan.
Rising healthcare costs, including COVID-related expenses and prescription drug costs, are putting a strain on the State Health Plan’s budget. Despite efforts to cut expenses and switch to a new insurer, the plan is still facing a projected loss of $106.3 million in the upcoming fiscal year.
Folwell is calling on the Republican-controlled General Assembly for $250 million to help keep the plan solvent in the short-term, but so far, legislators have not responded to his pleas. The reason behind the legislature’s reluctance to provide funds for the State Health Plan remains unclear.
Efforts to address rising healthcare costs and ensure the plan’s financial stability include looking at reference-based pricing and advocating for more transparency in healthcare costs. As the situation remains uncertain, the future of the State Health Plan hangs in the balance, with concerns about its ability to provide healthcare coverage for state employees, teachers, retirees, and dependents in North Carolina.
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