Publisher's Note: This post appears here courtesy of the Carolina Journal. The author of this post is Theresa Opeka.
On Tuesday, Democratic Gov. Josh Stein signed an executive order creating the bipartisan Health Care Affordability Commission that he said will look at ways to make healthcare more affordable for North Carolinians.
The commission will be co-chaired by State Treasurer Brad Briner, who oversees the State Health Plan, and Secretary of Health and Human Services Dev Sangvai.
"Health care costs are skyrocketing, and families are suffering," the governor said in a press release.
"I thank Secretary Sangvai and Treasurer Briner for their partnership, and I look forward to working with them to ensure North Carolinians can get access to and afford critical health care where and when they need it."
According to the release, the cost of healthcare is increasing all over the country, with healthcare spending increasing by nearly 50% more than in comparable peer countries. Healthcare costs in the United States average nearly $16,500 per person every year, with individuals paying more than $1,500 in out-of-pocket costs on average in addition to health insurance premiums.
The executive order directs the commission to look at different priority areas, and others that are shown as being the drivers of increased healthcare costs. They include improving transparency; promoting competition in the market for healthcare services; looking at ways to increase access to and supply of healthcare workers, especially primary care providers; exploring value-based care models, and finding ways to improve affordability in rural areas.
In August, the State Health Plan Board of Trustees agreed to raise plan premiums for the first time on a sliding scale based on income, with the smallest increases going to the lowest-paid state employees.
A $1.3 billion deficit was projected for the State Health Plan (SHP) in 2027, but changes implemented by the SHP board and the General Assembly were able to reverse this trend and bring the plan about $30 million above its reserve rate.
The plan's original projected deficit was $507 million in 2026 and between $800 million and $900 million in 2027.
Increased rates for Medicare Advantage Plans were approved earlier this month, and changes to deductibles and out of pocket costs are expected to be voted on in July.
"As Chairman of the State Health Plan, which provides health care for over 750,000 teachers, state employees, retirees and their families, we cannot keep asking those employees and the taxpayers to shoulder this increasingly unsustainable burden," Briner said in the press release.
At a press conference announcing the commission on Tuesday, he said he was thankful that lawmakers showed a commitment to state employees and retirees health by increasing funding to the State Health Plan by nearly $4 billion in the new state budget also released on Tuesday.
"For the second year in a row, we asked lawmakers to make significant increases to the State Health Plan which serves all of our teachers, state employees, retirees and their families," the treasurer said.
"And for the second year in a row, they have provided the increased funding. If legislators had not made this additional investment, totaling nearly $4 billion, it could have meant increased premiums by as much as $38 per member per month."
In addition to Briner and Sangvai, other voting members include Sen. Gale Adcock, D-Wake, member, state Senate Standing Committee on Health Care; Rep. Allen Buansi, D-Orange, member, state House Standing Committee on Health; Sen. Benton Sawrey, R-Johnston, chair, state Senate Standing Committee on Health Care; Rep. Timothy Reeder, MD, R-Pitt, chair, state Standing Committee on Health; and Kristin Walker, director, Office of State Budget and Management.
Josh Dobson, president & CEO of the North Carolina Healthcare Association; Gary Salamido, president and CEO of the NC Chamber; and Tunde Sotunde, MD, CEO of Blue Cross and Blue Shield of North Carolina are among the 18 advisory members.
Stein noted in the release that he signed a $319 million Medicaid bill into law in April that would fund the Medicaid rebase through June 30. In the newly released budget, lawmakers earmarked more than $1 billion for Medicaid and a $333 million Medicaid Contingency Reserve.
The governor also touted that in October, he announced that the state's medical debt relief program erased more than $6.5 billion in medical debt for more than 2.5 million North Carolinians.
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