WILMINGTON, N.C. (WECT) -In a world where prices on everything seem to be going up, there’s another thing many North Carolinians can soon add to the list: higher premium costs for the state’s health plan.
For months now, we’ve been telling you the increase is coming.
[Previous story: State Health Care Plan members can expect to pay more and get more benefits]
On Friday, leaders voted on how much more it’s going to cost the 750,000 members on the plan, which includes teachers, state employees and retirees.
“The simple goal, we’ve got to have cost growth be equal to or less than our revenue growth,” said state treasurer Brad Briner.
Briner says the rise in cost is a way to keep the state health plan alive by overcoming its over half a billion dollar deficit.
“That’s an enormous amount of money,” he said. “So big in fact that the solutions to filling that hole were pretty obvious and that’s that everyone was going to have to contribute.”
State Health Board Trustees voted to approve these premiums starting in January:
Those making less than $50,000 a year will see a smaller increase, as low as $10 more a month for the base plan.Those making over $90,000 will see a bigger increase, as high as $110 more a month.
Even so, Briner says it’s still very affordable.
“At $35 per member per month, that compares very favorably to any corporate plan we could find,” said Briner. “They average about $180.”
He says that in the last seven years, members saw little change to their premiums.
“We’re proud of that, that’s been a great thing for our state employees, but unfortunately, it was costing our reserves each and every year; now those reserves are out,” said Briner.
He also says premiums for families with kids are actually going down, which could lead to more members and keep these premium costs sustainable.
“The state health plan remains a fantastic benefit for state employees,” said Briner.
The North Carolina Association of Educators released a statement after the vote:
“Let’s be crystal clear. This premium increase is a pay cut. The legislature still hasn’t passed a budget. No raises. No cost-of-living adjustment. Nothing. Right now, school employees will take home less this school year than the last year before. The State shouldn’t be balancing the books on the backs of the insultingly underpaid public workers who serve our state’s students every day. Instead of prioritizing more tax breaks and handouts to corporations and our state’s wealthiest residents, state lawmakers should make working in public schools more enticing to recruit and retain the education workforce our students deserve. It’s what’s good for our kids. It’s what’s good for our communities.”
We know Governor Josh Stein signed HB125 into law last month, which gave an additional $100 million to the plan.
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