Medicare rates will rise for some in State Health Plan - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
June 9, 2026 Newswires
Share
Share
Post
Email

Medicare rates will rise for some in State Health Plan

By Theresa Opeka | Carolina JournalThe Center Square Health Care

(Carolina Journal) – For North Carolina's older workers and retirees in the State Health Plan, rates on the Medicare Advantage plans will increase, the Board of Trustees says.

The panel also on Friday discussed a new tier system for providers in the state.

The Humana Medicare Advantage Plans have nearly 177,000 enrolled members.

Changes in the Medicare Advantage Plan will save the Plan $54 million, close to closing the projected $58 million gap for 2027.

“I appreciate that this is not going to be wildly popular, but as we work to close that gap, this is something we need to do to make sure that we are financially sustainable,” said Tom Friedman, executive administrator of the State Health Plan.

It was noted that there haven’t been significant changes in the plan for at least five years or longer. The board indicated it has heard and respects the feedback from members about affordability across many areas. First-term Republican state Treasurer Brad Briner, charged with oversight of the plan, said the biggest challenge is that medical expenses continue to rise.

“So, in the spirit of we’re all in this together, which I think we sincerely have to be, we think this proposal is prudent from that perspective,” Briner said. “But I understand that it’s not pleasant.”

Out of pocket maximums for the Base Plan will rise from $4,000 to $4,500 and from $3,300 to $3,700 on the Enhanced Plan. All other copays will rise as well, including Part B Drug Co-pay, which Friedman said is a “tremendous cost driver of the program” costing thousands of dollars. The copay will go from $0 to $50 on both plans.

Jackson Cozort, director of government relations at the North Carolina Retired Governmental Employees Association, told Briner, Friedman, State Health Plan staff, and board members that while he acknowledges that they inherited a “very large ship that had a very large hole,” they have grave concerns regarding the substantial increase being proposed for retirees and other members.

“For many retirees, healthcare costs are not simply another line item in their household budget,” he said. “They’re among the most significant expenses that they face. They live on fixed incomes. Their pensions have remained fixed while cost continues to rise for not just healthcare but literally everything else.”

Suzanne Beasley, director of government relations for the State Employees Association of North Carolina, agreed with Cozort, adding that it has been a long time since retirees have received a cost-of-living adjustment, and that their buying power is down 30%.

“This is going to be probably pretty unbearable,” she said.

Medicare Advantage Plan premiums for 2027 will be voted on in July. Changes to Medicare Advantage Plans will become effective on Jan. 1.

Proposed tier system

Proposed 2027 benefit changes for active non-Medicare members were discussed, including the implementation of a new provider tier system that is broken down into Preferred, Access, Non-Preferred, and Out of Network providers.

“We are asking our members to become shoppers in health care, and we’ve never asked them to do that really before,” Briner said. “We’ve all just kind of taken what we’ve been given and assumed that that was the best for us. And we can’t assume that anymore. We have to look around for a better price, we have to respond when providers give us a better deal, and we need to educate all of our members as much as we humanly can to all those choices.”

Friedman said out of pocket costs for members have risen up to $400 since 2022, with almost 140,000 members spending $2,000 or more out of pocket, which he said is not sustainable.

If these difficult choices aren’t made now, he said things will become more expensive.

A $1.3 billion deficit was projected in 2027, but changes implemented by the State Health Plan board and the General Assembly were able to reverse this trend and bring the plan about $30 million above its reserve rate, according to Friedman earlier this year.

The plan’s original projected deficit was $507 million in 2026 and between $800 million and $900 million in 2027.

The goal of the tier structure is to have as many members as possible to use preferred providers, which will save the State Health Plan and the member the most money, with an estimated savings of one-third of out-of-pocket costs. Members who use access providers, which are mainly in rural areas, will basically have the same copays and deductible as they do now.

Friedman stressed that the preferred provider grouping is not an attempt to reduce rural providers and that the program itself is evolving and using Lantern, which has 194 providers.

He added that they met with every major health system provider in December and repeatedly stressed that there will be “winners and losers” as far as providers are concerned. Those who become a preferred provider will see the most members and those who are not will see less.

Briner said they are ready to hear comments from providers about how the system isn’t fair but asked members to ask their provider one question if they are in a nonpreferred or out-of-network category.

“If your provider tells you that they’re not in the non-preferred tier and they are not happy about it, ask them one question: why didn’t you value my business?” he said.

Friedman noted that emergency room coverage will be the same cost across all tiers and there will be a very robust transition-of-care plan in place for those using maternity/NICU services, cancer, and transplant treatments.

Contract negotiations are still ongoing and will be voted on at the board’s July 10 meeting. Briner said it isn’t too late for a provider to be added to the preferred tier. In addition, 2027 premium rates, a third-party administrator and pharmacy benefit manager will be voted on as well.

Also at Friday’s meeting, the board approved its 2026-32 strategic plan focusing on three priorities: protecting affordable premiums and stable benefits, helping members achieve better health, and ensuring members have access to care.

The initiatives are designed to improve member health outcomes while strengthening the plan’s long-term financial sustainability.

Older

Democrats enter race for Florida chief financial officer

Newer

Economists No Longer Expect The Fed To Cut Interest Rates This Year, Poll Shows

Advisor News

  • Succession planning: Building the future of your practice
  • From loss to security: Supporting widowed clients with life insurance
  • Plan now for lower Social Security benefits later
  • The conversation almost no advisor is having yet
  • Why advisors should offer retirement-longevity planning
More Advisor News

Annuity News

  • Empower Annuity Insurance Company of America Trademark Application for “EMPOWER WHAT’S NEXT” Filed: Empower Annuity Insurance Company of America
  • Industry pushes back on linking ‘financial strength’ to annuity illustrations
  • Sammons Enterprises & Sammons Financial Group Respond to Reports
  • The Manhattan Life Insurance Company Acquires Union Security Life Insurance Company of New York
  • Cayman Islands premier to meet with U.S. reinsurance regulators
More Annuity News

Health/Employee Benefits News

  • What Luigi Mangione’s celebrity says about Gen Z (Opinion)
  • New Medicaid rules could hit 600,000 Oregonians. Many may not know it
  • Luigi Mangione’s double jeopardy gambit could see him freed from prison before he turns 60
  • QANDA: FRAUD DRIVES UP HEALTHCARE COSTS
  • New Mexico to continue funding gender-affirming care for minors as Medicaid ends coverage
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • Record IUL sales don’t diminish the need for continued customer engagement
  • Benchmark International Successfully Facilitated the Transaction Between National Group Marketing Trust and New Era Life Insurance Companies
  • Why the bond market is flexing its muscles, and why everyone needs to care
  • An Application for the Trademark “LIVE TODAY, SECURE TOMORROW.” Has Been Filed by Security Mutual Life Insurance Company of New York: Security Mutual Life Insurance Company of New York
  • Modern Woodmen board selects Shea Doyle as next president and CEO
More Life Insurance News

- Presented By -

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
  • MassMutual Ascend Surpasses $2 Billion in Lifetime Advisory Annuity Sales, Reflecting Continued Momentum in RIA Channel
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet