Blue Cross: Audit already underway

Officials with Blue Cross and Blue Shield of North Carolina and the State Health Plan say there's no need to call for an audit of a contract between the two for administrative services.

They note that the State Auditor is in the midst of a performance audit of the plan, which would likely include a contract review, Dan Kane reports.

"A Performance Audit of the State Health Plan by the State Auditor is currently underway," plan spokeswoman Linda McCrudden said. "Once completed and released, the audit report will be available to the public."

Adam Searing of the N.C. Justice Center's Health Access Coalition, one of two groups that called for the audit, said he is aware there is a state audit under way, but the groups are calling for something different.

"We want something done pretty quickly — I don't know where the state auditor is — and we want something that focuses directly on this contract process (by) someone who really understands in depth the whole contracting process among health plans and employers," Searing said.

Moare after the jump.

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The center and the other group, the State Employees Association of North Carolina, also want the contract rebid. Blue Cross has the contract for at least another four years.

They say the contract needs to be examined in light of how much it is costing the state per claim, and the fact that state lawmakers are about to run legislation that calls for roughly $580 million in premium increases to keep the plan solvent over the next 28 months, plus increases in co-payments and deductibles for employees, teachers and retirees.

Plan officials say administrative costs are not out of line with other states, and a Blue Cross spokesman, Lew Borman, said the company provides other services besides claim processing.

He also said Blue Cross' profit on the contract is less than a penny on the dollar.