Improved prognosis for State Health Plan prompts premium break

Posted May 19, 2014

— State Treasurer Janet Cowell said Monday that state workers and retirees won't have to pay the planned 2.14 percent increase in premiums next year because the State Health Plan is doing better than expected financially.

The health plan is forecast to be $180 million in the black by the end of June, contrasting sharply with its steep losses in recent years. Also, since lawmakers moved the State Health Plan under Cowell's control two years ago, the unfunded liability for retirees benefits has been cut by $10 billion, she wrote in a letter to Senate President Pro Tem Phil Berger and House Speaker Thom Tillis.

Actuaries for the plan reported that lower expenses could keep annual premium increases below 3 percent through 2017, even without an increase in 2015.

Cowell said skipping the increase would save the state more than $23 million for its portion of employee premiums, and she called on legislators to put the extra money toward raises for state employees.

“As you consider ways to enhance the compensation for educators and state employees, I hope that you will consider using these savings for salary increases,” she wrote in the letter.

Lawmakers have the final say on whether to increase premiums as they adjust the state budget.


This blog post is closed for comments.

Oldest First
View all
  • BeKind May 20, 2014

    Kudos to Ms. Cowell and her department for sound financial authority.

  • beaupeep May 20, 2014

    Glad to see the GOP has gotten this under control.

  • foodstamptrader May 20, 2014

    Thank you Janet Cowell and the GA for restoring some competent fiscal management to the state retirement and health plans. Under Demo rule, these plans were terribly mismanaged and misused resulting in losses and huge deficits.

    In many areas of state finance our Republican GA is restoring health and soundness.

  • sisu May 19, 2014

    Some good news!

  • Kenny Dunn May 19, 2014
    user avatar

    Thank you ACA for helping to keep costs down for everyone.

  • 42_wral_mods_suck_i'm_gone May 19, 2014

    Thanks Obamacare!