Member Update
October 30, 2008 – As I review the Plan’s financial performance with you, I want to reassure you that your health care coverage is in full effect and all claims will continue to be paid.
The Plan remains committed to restoring cash reserves and strengthening financial health. Throughout this process, transparency for our members and taxpayers is an important value. Closely monitoring our “recasted,” or revised budget, against actual expenditures is a key part of this process.
Here are some highlights from the State Health Plan’s September 2008 financial report:
- For the 1st Quarter of Fiscal Year 2008-2009, our year-to-date actual plan loss is $89.8 million, vs. the recasted budget projection of $115.4 million loss and the original budget projection of a net gain of $44.1 million.
- The ending cash balance for September was $49.9 million.
- Please keep in mind, as previously reported: For Fiscal Year 2008-2009, the Plan confirms a projected loss between $264 and $280 million. (A loss of $62 million was originally projected.)
Also, a Performance Audit of the State Health Plan was recently completed by the State Auditor, and can be reviewed here. This audit covers Plan oversight from July 1, 2007 through July 31, 2008.
Back to topWhat’s Next:
Our State Health Plan is one of the largest employer-based health plans in North Carolina. Like most plans around the country, it has struggled to keep premiums from escalating as health care costs increase. As the Plan seeks to balance the concerns around cost and affordability, we are committed to our mission of providing quality health care products and services to enhance your health and wellbeing.
Over the coming months, the Plan will explore and present a wide range of viable options for our membership of 662,000. Many of these programs and services will address both health status and cost savings. We are concerned about the future and will develop programs that can be successful for members and the Plan. I will provide you with more information as these programs unfold.
Ultimately, solutions to the Plan’s budget shortfall will be determined by the General Assembly during the 2009 Legislative Session, as they face the challenge of funding the State Health Plan.
Meanwhile, cost-saving initiatives continue, as the Plan strives to appropriately reduce expenses in programs and services.
What You Can Do to Improve Your Health and the Bottom Line
Many of you have asked what members can do to improve their health status and the bottom line. With input from our State Health Plan Integrated Health Management department, here are some action steps all of us can take to make a difference right now.
We can take good care of ourselves. This means paying attention to exercise and diet and making wellness a part of each day, both at work and at home. This could translate into taking the stairs several times a day, finding partners for noontime walks and packing nutritious lunches for school and work.
For those with chronic conditions that need regular monitoring, such as diabetes, you can make a commitment to take the medicines you have been prescribed and on the schedule indicated. To underscore the importance of taking prescribed medications, a recent State Health Plan study indicated that:
- 50% of Plan members with a new prescription for cholesterol lowering drugs had stopped taking their medication within seven months.
- Remaining on cholesterol lowering medication has been shown to reduce overall medical costs by 43%.
- Remaining on diabetic medication has been shown to reduce overall medical costs by 48%.
You might also take some time to explore the resources available to you through NC HealthSmart. This includes access to a personal health coach, available by calling
1-800 -817-7044. (Please see note about eligibility and confidentiality.)
