(The Center Square) – North Carolina’s State Health Plan, serving about 750,000 active and retired state workers, is projecting net losses and cash deficit, a report says.
Brad Briner, state treasurer of North Carolina
First-term Republican Treasurer Brad Briner and his staff are charged with overseeing the plan, and his request to first-term Republican Auditor Dave Boliek generated the analysis. Boliek’s team said, “Actuarial projections from 2024, which were used for financial forecasting by the State Treasurer’s Office, showed net losses for the State Health Plan of $199 million, $507 million, and $862 million for 2025 through 2027.
“Ultimately, the projections showed the State Health Plan having a $949 million cash deficit by the end of 2027.”
The audit was presented to Briner as well as Gov. Josh Stein; leadership of the General Assembly and members of the General Assembly.
Reasons, the audit says, for the net losses are primarily tied to escalating medical and pharmacy costs; a state budget appropriation $240 million less than requested; and $316 million in COVID-19 expenditures not reimbursed by the state.
“Ensuring the financial solvency of the State Health Plan has been a top priority for me since day one in office,” Briner said. “I appreciate the auditor’s team verifying the size and scope of the deficit that we are facing. State employees, retirees and their families deserve a transparent assessment of the finances of the plan they rely on, and the information provided in this audit confirms that we are on the right path.”
Boliek, in a release, said, “The work of our team verified the prior assessments. With the projections confirmed accurate and in accordance with professional standards, the scope of the issue at hand is now demonstrably clear.”
The two-year budget statutorially required to be in place with the new fiscal year starting July 1 has not been approved. Lawmakers left Raleigh on Thursday.
