Senate approves health plan reforms that will save millions

Faced with rising health care costs and a multi-billion dollar budget deficit, the North Carolina Senate on Thursday approved responsible changes to the state health plan that will help shore up hundreds of millions of dollars without cutting jobs.

Senate Bill 265 passed tentatively.  It keeps costs low while mitigating impacts to rank-and-file state employees.  Among other changes, the bill:

·       Moves the state health plan to the state treasurer’s office.  The General Assembly is one of the few legislatures in the country that oversee the state health insurance.  Moving the plan will put it under the same authority as the state retirement system.

·       Requires state employees to pay a modest monthly premium for quality coverage.  They will pay $21 per month for the best coverage plan, and about half that amount for a basic option. The premiums are about 5 percent of the cost of coverage.

·       Maintains access to low-cost medicine.  It keeps $10 copays for generic prescriptions.

“For years, the state health plan has teetered on the verge of financial collapse,” said Senate President Pro Tempore Phil Berger (R-Rockingham).  “The treasurer’s office, with experience running the state’s pension system, is a good fit.  Private-sector employees have long paid premiums for their health care.  This is a strong step toward ensuring the plan’s future stability.”

The State Employees Association has endorsed major components of the bill, such as moving the health plan to the treasurer’s office.

Gov. Beverly Perdue’s budget proposal also called for premiums for state employees.

“Health care costs are skyrocketing and taxpayers cannot afford to take more money from the general budget to pay for health insurance,” said Sen. Tom Apodaca (R-Henderson), a primary sponsor of the bill.  “We’re doing everything we can to keep everyday costs low.  This is a high-quality health care product and a very attractive benefit.”

Senate Republicans quickly passed a medical malpractice bill earlier in the session that will help lower health care costs and increase access to care.  Senate Bill 33 will cut down on unnecessary tests and procedures doctors administer to avoid excessive lawsuits.  Those extra costs are passed down to taxpayers through higher insurance premiums and taxpayer-funded programs for the poor.

 

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