Republican State Treasure Saves NC Tax Payers, State Retirees A Lot of Money with One Move

Some 150,000 state government retirees with Medicare Advantage insurance through the State Health Plan will see their premiums and benefits held flat in the coming year after a renegotiation of the state’s contract with insurance giant United Health Care.

The state itself will actually save money, as the premiums it pays go down 65 cents a month in 2018, to $120 per Medicare-eligible retiree.

The savings came through despite the potential imposition of an a federal tax on insurance plans that is part of the Affordable Care Act. This Health Insurance Providers Fee has been on hold, but it’s slated to kick in for 2018. It’s fate is unclear, since federal health care policy is up in the air while Congress debates repeal of the ACA, also known as “Obamacare.”

State Treasurer Dale Folwell, whose office negotiated the new deal, held a press conference Wednesday to announce the savings and to call on North Carolina’s congressional delegation to oppose the fee. If it goes away, the state would save about $45 million next year, Folwell said.

Both the State Employees Association of North Carolina and the North Carolina Retired Governmental Employees Association applauded the new contract.

“A tremendous accomplishment,” SEANC Director of Operations Chuck Stone said.

Richard Rogers, executive director of the retired employees association said the plan would remain “strong and premium free.” Retirees do not pay a premium for Medicare Advantage, which combines Medicare parts A and B into plan, administered by UHC.


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