The state House today passed a major fix to the State Health Plan that will cost taxpayers roughly $710 million, reduce benefits for state employees and teachers, and protect North Carolina pharmacists from increased competition in filling prescriptions.
The legislation also benefits North Carolina chiropractors and physical, occupational and speech therapists by keeping co-payments at the same amount for visits to family doctors, Dan Kane reports.
A similar provision inserted into the 2005 state budget by former House Speaker Jim Black helped land him in prison when three chiropractors admitted giving him cash as he helped them with their legislative agenda.
The plan serves 676,000 state workers, teachers and retirees. A combination of rising health care costs and inaccurate financial projections put the plan in danger of running out of money. The legislation would immediately draw $250 million from the state's rainy day fund to keep the plan from becoming insolvent this month.
More after the jump.
—————
The vote was 64-52 along party lines, with many Republicans protesting the legislation, saying the increased costs to state employees — an average of more than $600 per person over the next two years — only make the plan less attractive for younger, healthier people.
Employee groups have also expressed concern over rising co-payments and deductibles they would pay. The state pays the premiums for employees, teachers and retirees, but they pay premiums for their dependents.
One benefit for members in the legislation shifts the plan to a calendar year, which makes it easier to integrate their coverage with health savings accounts and other services. The plan currently operates on a fiscal year that begins July 1. The change will add roughly $20 million to the cost, according to a fiscal note.
The bill now goes back to the Senate, which passed a different version last month.
The Democrat-controlled House turned back an amendment by Rep. John Blust, a Greensboro Republican, that would move the health plan out of the legislature's oversight and under the executive branch. Opponents to the amendment noted that the legislation includes the creation of a commission to examine, among other things, whether the plan should be overseen by another branch of government.
The House also amended the legislation to require a detailed financial audit of the plan's expenses. Lawmakers and employee groups have been concerned about the lack of transparency in the health plan's operations. Health plan officials recently confirmed that the administrative expenses of its largest contractor, Blue Cross and Blue Shield of North Carolina, have never been audited.
Legislative leaders have urged their colleagues to pass the bill by early April so that changes in the plan can take effect July 1.
Blog RSS feed
