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Again: The State Health Plan needs bailouts because it is mismanaged

drainYesterday, Aon Consulting told members of a legislative committee meeting essentially what Adam Searing pointed out last year, North Carolina state employees are cheaper to insure than the average member of a ppo plan in the South. The consultant concluded that state employees in North Carolina had lower claims cost than state employees in Georgia, Tennessee, and Virginia.

So why does the State Health Plan need bailouts? Because it is mismanaged.

The administrative contract with Blue Cross drove the State Health Plan into the ground. The state could not estimate expenses because the Blue Cross contract was secret. And, as we learned in an audit last week, the State Health Plan is paying Blue Cross for corporate sponsorships and travel.

Again and again we see that high costs are not the primary culprit in bankrupting the State Health Plan. Certainly, we must do something about costs. Every health plan must deal with health care inflation. But first the State Health Plan must do something about its management.

13 Comments

  1. [...] The Progressive Pulse – Again: The State Health Plan needs … [...]

  2. WILLIAM

    February 26, 2010 at 11:09 am

    WHAT ELSE DO YOU EXPECT FROM THE GOOD OLD BOY DEMOCRATIC NETWORK IN THIS STATE ? THERE IS NOTHING BUT CORRUPTION IN ALMOST EVERY STATE DEPARTMENT !

  3. Adam Linker

    February 26, 2010 at 11:58 am

    I wouldn’t go that far, but there are certainly deep problems related to the State Health Plan and Blue Cross.

  4. Alex

    February 26, 2010 at 4:22 pm

    Spouses have to pay more into the plan. I pay $500 a month. I do not understand the 80/20 plan for spouses mine is more like 50/50 with what BCBSNC pays and what I pay every month.

    My husband has yet to go to a Doctor this year so it evens out between us.

  5. Louie

    February 27, 2010 at 4:09 am

    the “Shadow Elite” isnt Republican or Democratic.

  6. WILLIAM MURRAT

    February 27, 2010 at 8:20 am

    WE COULD CUT HEALTH CARE COSTS SIGNIFICANTLY IF WE GOT RID OF THE BLUE CROSS MONOPOLY. THEY CONTROL THE ENTIRE PROCESS THROUGH THEIR LEGISLATURE INFLUENCE.HOW COULD YOU GIVE THEM A $100 MILLION CONTRAT WITH NO BIDS. THAT ASTOUNDS ME.

  7. Charles Malone

    February 28, 2010 at 2:12 pm

    I plan to investigate the contract that the SHP has with Blue Cross and Blue Shield first thing if I can win election to the NC Senate this year.

    I’m the Democratic nominee for seat #15 (covers North Raleigh and Town of Wake Forest), and am a state employee myself–work for DENR. I know the pain of the heavy costs of the SHP from years of paying family coverage. I am now in much better shape only because my wife also works for the state.

    Charles Malone
    http://www.charlesmalonencsenate.com

  8. [...] The Progressive Pulse – Again: The State Health Plan needs … [...]

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  12. [...] The Progressive Pulse – Again: The State Health Plan needs … [...]

  13. [...] post from this year, pointing out that the latest independent audit of the SHP found that NC pays less (yes, less) to insure state health plan members than Georgia, Tennessee, and Virginia pay for each of their state employees in their state health [...]