State Health Plan ousts longtime insurer Blue Cross NC, signs new contract with Aetna
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State Health Plan
The State Health Plan’s board of trustees voted in a closed-session meeting to award Aetna a contract that has been in the hands of Blue Cross NC for more than 40 years. But the details are still shrouded in secrecy. The vacuum of information has been filled with questions from state employees and few clear answers from those in charge of the health plan.
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Aetna will replace Blue Cross Blue Shield of North Carolina as the administrator for the state’s health plan, State Treasurer Dale Folwell announced Wednesday.
The health plan, which covers nearly 740,000 teachers, state employees, retirees and their dependents, has used Blue Cross NC as its third-party administrator for more than 40 years. The State Health Plan Board awarded the new contract to Aetna after its proposed health plan promised lower costs and more transparency.
A spokesperson for Blue Cross NC said the company will appeal the decision and will request public records to learn more about the decision.
“We are deeply disappointed by the State Health Plan’s decision last month,” a statement from the insurer read. “This is a consequential decision that will impact more than 580,000 State Health Plan members and threatens North Carolina jobs.”
READ MORE: What NC teachers, state employees, retirees need to know about the health insurance change
Folwell said the state will save an estimated $140 million throughout the course of the three-year contract, which begins in January 2025. Folwell said he spoke with leaders of Blue Cross NC who assured him they will “finish strong” in the remaining two years of their contract with the state.
Ardis Watkins, executive director of the State Employees Association of North Carolina, said reducing health care costs is essential to make coverage more affordable to state employees.
“It has been our experience that the Plan’s leadership has the interests of state employees and retirees at heart,” Watkins said in a statement.
State employees covered by the plan will begin receiving information about the transition in 2024.
“A change of this magnitude is a great opportunity for a fresh perspective,” Folwell said in a statement.
Teddy Rosenbluth covers science and healthcare for The News & Observer in a position funded by Duke Health and the Burroughs Wellcome Fund. The N&O maintains full editorial control of the work.
This story was originally published January 4, 2023 at 12:49 PM with the headline "State Health Plan ousts longtime insurer Blue Cross NC, signs new contract with Aetna."
CORRECTION: Aetna has been chosen to replace Blue Cross NC as the administrator of the state’s health plan. An earlier version of this story described its role incorrectly.
