RALEIGH, N.C. – The state House on Tuesday approved a taxpayer bailout of more than $730 million for the health insurance plan for state employees and retirees.
The 64-52 vote came after House members decided hiring an outside accounting firm to review the plan’s books could salve some of the anger of state workers over higher copays and deductibles that they say amount to a pay cut. A separate blue-ribbon committee would review how the plan providing health care coverage for about 667,000 state workers, teachers, retirees and dependents has been managed in recent years.
“We don’t really know yet what caused the health plan to suffer the unprecedented losses,” said Rep. John Blust, R-Guilford, who wanted responsibility for overseeing the health plan taken away from the Legislature and given to governors.
The Senate three weeks ago passed a $678 million bailout expected to keep health care bills paid through mid-2011. A final version is likely to come out of a House-Senate negotiating committee.
Legislators failed to meet a self-imposed April 1 deadline for getting the legislation to Gov. Beverly Perdue despite the warnings by the health plan administrator that the plan will run out of money to pay doctors and hospitals. Those worries eased after Perdue took control of a $250 million reserve fund under her authority to ensure the state’s budget balances when the books close June 30.
The House version would require the state to spend $730 million from the state operating revenues and highway funds over the next two years to keep the plan afloat. Annual deductibles in the most popular “standard” benefit plan would increase from $600 a year to $800 for in-network coverage.
