State May Enroll Retirees In Medicare Advantage | Eastern North Carolina Now

 Publisher's note: The author of this post is Barry Smith, who is an associate editor for the Carolina Journal, John Hood Publisher.

Savings could reduce $25.5-billion unfunded State Health Plan debt

 RALEIGH — Draft legislation reviewed on Monday by the Program Evaluation Oversight Committee would require the State Health Plan to shift all Medicare-eligible retirees to Medicare Advantage plans.

 Moving retirees to a Medicare Advantage plan could save the state of $64 million annually, said David Vanderweide, a legislative fiscal analyst. However, savings eventually could drop years to between $30 million and $40 million a year if Medicare Advantage premiums increase faster than claims to the state's traditional health insurance increase, he said.

 Kiernan McGorty, principal program evaluator for the Program Evaluation Division, offered draft legislation that automatically would enroll those eligible for Medicare in Medicare Advantage plans beginning Jan. 1, 2017.

 However, McGorty suggested modifying the bill to provide an appeals process if a different plan would serve some individuals' circumstances better than Medicare Advantage.

 Rep. Craig Horn, R-Union, the committee's co-chairman, suggested that the legislative staff rewrite the legislation, including the appeals process.

 "We're not going back into session until April," Horn said. "We've got the time."

 The General Assembly convenes for its short session on April 25, 2016.

 The proposal is aimed at making some headway into the state's $25.5 billion unfunded liability of the retiree health system.

 Rep. Pat Hurley, R-Randolph, a retired state employee, questioned whether retirees would end up paying premiums for the Medicare Advantage plans.

 "I'm concerned if it's going to cost them $100," Hurley said after Monday's meeting. "We promised them free health care. I am concerned about it."