Some retired NC state workers will pay more for health insurance. Working enrollees could save.
Retirees using Medicare Advantage health insurance under the State Health Plan will see significant increases next year. The Plan's
Copays will increase for a range of medical services. For example, the daily copay for an inpatient hospital stay of 1 to 10 days will go up from
Out-of-pocket maximums will go up, too, rising
"For many retirees, healthcare costs are not simply another line item in their household budget," he said. "They're among the most significant expenses they face."
Retirees have gone a long time without a cost-of-living increase, she said.
The Medicaid Advantage increases "are going to turn our folks on their head," Beasley said.
State employees and teachers who are still working and enrolled in the State Health Plan would pay less out of pocket when they seek care from "preferred providers" under a strategy for reducing costs health plan administrators discussed Friday. The plan covers about 750,000 people, including about 575,000 state employees, teachers, and their dependents.
Health systems and specialists designated as "preferred providers" will offer care at lower costs to the insurance plan.
To help convince insurance plan members to use those providers, members would also pay less. For example, the deductible for an individual would drop to
"Everyone of our active members should have the opportunity to save material amounts of money under this new strategy," state Treasurer
Big changes ahead for State Health Plan as trustees work to lower costs
This is the latest effort by plan administrators to help control medical costs and reverse the drain on health plan reserves.
Health insurance premiums increased this year for the first time in seven years. Trustees are expected to vote on another premium increase next month.
Workers are paying premiums on a sliding scale pegged to their salaries this year for the first time.
The latest change separates medical systems into four tiers: preferred, access, non-preferred, and out-of-network. It would be considerably more expensive for members to use non-preferred or out-of-network doctors and hospitals. The health plan will announce which health systems will be on the preferred list next month after contracts are signed.
Briner acknowledged that the new tiered system could be confusing for members, and anticipated that health systems that end up in the "non-preferred" category will complain.
However, every major provider was invited to compete for a contract, Briner said. Providers who end up on the non-preferred list didn't bid at all or decided to keep their prices high.
Over time, health plan administrators hope to have 90% of members using "preferred" or "access" providers, said
"We cannot afford to continue to pay the highest prices for things," Friedman said.
Courtesy of NC Newsline


Fjarde AP Fonden Fourth Swedish National Pension Fund Sells 1,060 Shares of First Citizens BancShares, Inc. $FCNCA
NJ DEPARTMENT OF BANKING AND INSURANCE URGES NEW JERSEY RESIDENTS TO REVIEW INSURANCE COVERAGE AS THE 2026 HURRICANE SEASON STARTS
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
- Researchers from National Health Insurance Service Detail New Studies and Findings in the Area of Stroke (The Effect of Regional Disparities In Access To Rehabilitation Services On Mortality Among Stroke Patients): Cerebrovascular Diseases and Conditions – Stroke
- Oscar Health Inc. (NYSE: OSCR) Draws the Stock Spotlight on Nov. 12
- Duet Raises $15M to Scale Nurse Practitioner-Owned Clinics, Filling Critical Primary Care Gap
- Sidecar Health Named a Finalist in the 2026 Fierce Innovation Awards
- Open enrollment set to begin Nov. 1
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