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NC’s State Health Plan Sues Atrium, Saying It Can’t Set Plan Members’ Copays
The plan says the program undercuts its tiered network and could shift more costs to state employees.
North Carolina officials sued hospital giant Atrium Health on Friday, seeking a temporary restraining order to block a new program that state leaders claim illegally interferes with the State Health Plan's pricing strategy.
Earlier this year, the State Health Plan moved to a tiered network system, categorizing providers as "preferred," "access," or "non-preferred" to reduce costs for more than 750,000 state workers, retirees, and family members.
State Treasurer Brad Briner alleges Atrium's "Affordability Protection Program" bypasses state-set copays and deductibles, threatening the plan's long-term viability and confusing members about their actual coverage options.
To accommodate the legal dispute, the state extended open enrollment to Nov. 6, while Judge Matthew Houston scheduled arguments on the restraining order for Tuesday in Sanford at the Lee County Courthouse.
Facing $21.95 billion in liabilities, Briner warns that Atrium's actions could force higher premiums on all members, while bankruptcy of the plan would threaten the state's credit rating if the program proceeds.