EDITORIAL: Eliminate CON Laws, lower healthcare costs
"What's good for the goose should be good for the gander" as the saying goes. But that is not the case when it comes to providing health care for state employees, both active and retirees, and the rest of
This past week, the N.C. State Health Plan which provides health coverage for active and retired state employees entered into a contract with Lantern, a company that, according to its website, specializes in providing access to "complex, high-cost care- surgery, cancer and infusion therapy." The company notes that these medical services "make up 50% of healthcare spending."
It seems paradoxical if not outright hypocritical that the state health plan is so concerned with the rising cost of health care, and of course health insurance, that the plan directors are contracting with a private company to get lower costs, yet the state continues to support legislation that restrains competition in medical services that would benefit the average taxpaying citizen by maintaining a Certificate of Need Law.
The State Health Plan directors were motivated to contract with Lantern out of concern with rising medical costs and a growing deficit in the health plan which is a state funded benefit for which the state taxpayers are contractually and financially responsible to provide.
Just weeks prior to this announcement a bipartisan three judge court panel upheld what amounts to a state mandated monopoly for very services that the State Health Plan is seeking to go around the state's Certificate of Need Law or CON law as it is known.
For more than five years, Dr.
Under the current law a vast majority of the specialized medical treatment facilities and specialized services require certification from the state's
Not to be outdone by the courts, the medical industry lobbied the legislature to noodle around with the law which was re-introduced and passed in 1977. Since then the law has undergone several revisions and dodged legislative motions to remove it completely.
The hospital industry has successfully argued the constitutionality of the law, claiming that it improves quality of care particularly in rural and underserved communities.
Contrary to that argument, the
"When CONs were initially gaining traction, the fee-for-service (FFS) model was dominant, where hospitals are trying to fill beds and use services to make revenue. In this instance, limiting the number of facilities could be valuable in keeping healthcare spending down. Costs would be kept down by avoiding unnecessary expansion or redundant services." But now with the increase of managed care and advanced payment models, the same CON laws have become anticompetitive, "limiting new market entrants or ways of delivering care more cost effectively."
Blythe notes in her story for
"The State Medical Facilities Plan, which is developed each year as part of the certificate of need process, found no such need existed in Singleton's geographical region, which spans
All of this legal contortion assures the hospital industry of its control of the medical services with hospitals controlling, the "complex, high-cost care- surgery, cancer and infusion therapies" that Lantern claims represents 50% of healthcare spending. These are the very costs that the state's Health Plan is seeking to avoid or mitigate while the taxpayers, who are on the hook for providing the services for the state employees, must themselves pay full freight. Something just doesn't seem to be in balance with this.
If the N.C. Health Plan is feeling the financial pinch caused by anti-competitive medical practices supported by a questionable, arguably unconstitutional law, then it only seems appropriate to fix the problem for all North Carolinians, not just a select group.
The CON law does not need to be argued in court, but rather on the floor of the


Turning 65 This Year? 7 Medical Costs Medicare Won’t Cover After Enrollment Starts
Root Inc‑OH: $1.12 B Market Cap, 21.5x PE & Telematics‑Driven Growth Outlook
Advisor News
- The 6X Formula for leveraging content marketing with AI
- When a home becomes difficult to insure, the plan changes
- The inheritance gap: Helping clients plan for money that hasn’t arrived
- After the midterms: Addressing your clients’ tax concerns
- Berkeley arts tax heads toward passage while public bank measure looks likely to fail
More Advisor NewsAnnuity News
- Athene CEO criticizes offshore reinsurance, risk-taking by competitors
- DOL, trade groups, state AGs file briefs supporting Alcoa in PRT lawsuit
- John Hancock launches new fixed indexed annuity suite
- Annuities to play a larger role in workplace retirement plans
- FHLBank Pittsburgh Announces Results in 2026 Board Election
More Annuity NewsHealth/Employee Benefits News
- A practical benefits strategy for cost-conscious employers
- Uninsured? Here's where to look for free or low-cost vaccines
- Your Health Idaho is in open enrollment
- Apple Health (Medicaid) changes are coming in January: Here's what you need to know
- Hundreds turn out for Healthy Aging & Wellness Expo in the Bronx, with another coming in February
More Health/Employee Benefits NewsLife Insurance News
- Three lawsuits put life insurers’ cost-of-insurance practices under scrutiny
- Military Briefs: November 12-18
- Security Benefit Series B Preferred Stock Dividend Rate Resets to 10.286%
- FHLBank Pittsburgh Announces Results in 2026 Board Election
- New Jackson Study Finds the "Sandwich Generation" Squeeze Comes from More Than Two Sides and It’s Quietly Draining Retirement Savings
More Life Insurance News