Member Update
Senate Bill 287 – State Health Plan
In April 2009, Senate Bill 287 became law (Session Law 2009-16). The State Health Plan promptly launched the critical implementation work on behalf of members and taxpayers. This included all aspects of the Annual Enrollment process, currently underway and focused on providing you with important information about premium increases, benefit changes and other key areas. Completed Annual Enrollment forms are due no later than May 29, 2009. Please keep in mind that unless you need to make a change, no action is necessary. For materials, please click here.
The rate increase for dependent coverage is 8.9% for the 2009/2010 benefit year. There will be an additional rate increase of 8.9% on July 1, 2010.
- For information on pharmacy changes, additions and new programs, click here.
- As outlined in Senate Bill 287, the State Health Plan will implement comprehensive wellness initiatives to encourage healthy lifestyles and cost savings in the areas of tobacco cessation and weight management. To learn more about these initiatives, click here.
Focus for Future-Planning
I would like to emphasize that Senate Bill 287 is a bridge. It will get us through the 2009-2011 biennium. The Legislature took measures to stabilize the Plan, but as many legislators and others have emphasized, we will need to develop a longer term strategy to lower costs for members.
We’ve got a lot of vital new work to do right now for the sustainability of the Plan and the health of our members in the future.
Stabilizing the Financial Health of the Plan
The State Health Plan received a commitment of $250 million from the General Assembly which will enable us to pay claims expenses and resolve cash flow issues through the current fiscal year, ending on June 30, 2009. As of May 20, 2009, the Plan has received $100 million from the Savings Reserve Account, with the remainder scheduled to be received over the next six weeks. The Plan should end the fiscal year with approximately $120 million in cash, which is equivalent to slightly more than two weeks of expenses, to start the next biennium.
The Plan’s actual financial results continue to track closely to the projection made July 30, 2008. On a per member basis, the Plan’s revenues and expenses are each within 1% of the recasted budget projection through the end of March.
Board of Trustees Meeting
The State Health Plan Board of Trustees held a productive and informative quarterly meeting on Tuesday, May 19, at North Carolina A&T University in Greensboro. I invite you to review the topics and materials, available on our Web site. Click here.
The State Health Plan appreciates your ongoing input as we seek to fulfill our mission “to provide quality health care products and services for your health and wellbeing.”
