Audit: health plan oversight 'inadequate'

janestancill — Wed, 15 Oct 2008 10:41:00 -0400

A state audit released today calls the oversight of the State Health Plan "inadequate and ineffective."

The audit recommends that the legislature put the plan for teachers and state employees under the executive branch to ensure proper financial oversight.

The health plan is overseen by a legislative body, the Committee on Employee Hospital and Medical Benefits. The committee's influence over the plan may violate the North Carolina State Constitution's separation of powers clause, the audit said, and creates the potential for undue political influence and conflicts of interest.

“There is clearly a problem when the Health Plan is running a deficit and facing tough economic times ahead. North Carolina’s teachers and State employees need to know that the Health Plan that they’re paying for is being properly managed and will be there when they need it,” said State Auditor Les Merritt.

George Stokes, the former health plan administrator, was abruptly fired in July after Senate Majority Leader Tony Rand and House Majority Leader Hugh Holliman said they received information of financial problems with the plan. Stokes challenged his firing, saying it violated state law.

Today's audit is the first of two performance audits on the plan. The second will focus on the financial causes of the State Health Plan’s deficit.

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Audit: health plan oversight 'inadequate'