UNC General Administration defends State Health Plan and Blue Cross

In a widely circulated Q&A sheet (State Health Plan FAQs), UNC General Administration provides some strangely misleading information. It’s not a complete surprise; after all, UNC has close ties to Blue Cross. Future Blue Cross CEO Brad Wilson still hangs around the UNC Board of Governors. And current Blue Cross CEO Bob Greczyn was slated to take a seat on the BOG before state employees objected.

So here are a few facts to accompany UNC’s FAQs.

The first frequently asked question is:

1. Why are state employees being addressed in such a punitive way with requirements regarding smoking and obesity? How will these requirements work?

After describing the new smoking and obesity requirements the UNC pamphlet says:

Details about how the State Health Plan will “monitor” under this program are not yet available.

Really? State Health Plan Executive Director Jack Walker has repeatedly said the state will randomly test state employees for tobacco use. Here’s one recent example from the Asheville-Citizen Times:

North Carolina will join a number of other states in charging more for smokers, and at least one, Alabama, in doing the same for the obese. Only one, though, Indiana, backs up its smoking requirements with random tests, Walker said.

Walker told the panel that random testing will happen at off-site locations, not at workplaces.

I also like this question:

4. What is the role of NC Blue Cross Blue Shield? Why can they use my premium dollars to lobby against health care reform?

Here’s part of the answer from UNC:

The Plan contracts with Blue Cross Blue Shield to provide claims processing services. Blue Cross Blue Shield receives reimbursement from the State Health Plan for claims processing. Blue Cross Blue Shield’s current contract for these services expires in 2013.

This neglects to mention that the State Health Plan reimburses Blue Cross for its expenses, plus a profit, plus an additional payment for mysterious “administrative expenses”. This “cost plus” contracting is not allowed by the federal government because it’s obviously ripe for abuse.

Also:

5. Why is the State Health Plan so limited compared to plans in other states? What reforms are possible?

The first sentence from UNC:

The employee population covered by the State Health Plan is older and less healthy than the general population which results in higher costs.

The only problem is that the State Health Plan’s own information shows that state employees are 10 percent less expensive to insure than the average PPO enrollee in the South.

I know UNC is tight with Blue Cross, but this little propaganda piece is a bit much. Misinforming faculty and staff does nothing to improve employee trust in administration.