The financial outlook for the North Carolina State Health Plan, which covers around 750,000 state employees and retirees, has been confirmed as challenging, with the North Carolina Office of the State Auditor (OSA) validating previous actuarial projections of escalating net losses and a looming cash deficit. According to a performance audit released by the OSA, the State Health Plan is headed toward net losses of $199 million in 2025, $507 million in 2026, and $862 million in 2027, eventually culminating in a nearly one-billion-dollar shortfall by the close of 2027.
State Auditor Dave Boliek remarked on the thorough nature of the analysis, "The work of our team verified the prior assessments," and by confirming that the figures align with Actuarial Standards Board practices, there's now clarity on the full extent of the deficit issue, in the words of the Treasurer, Brad Briner, who has been actively engaged in addressing the plan's financial stability from his first day in office, says that transparency in the plan's financial state is paramount for everyone involved, and appreciates the independent verification by the OSA. The OSA identified a trifecta of pressures contributing to the financial strain: rising medical and pharmacy expenses, a state budget that fell short by $240 million of what was requested and the fact that the Plan isn't being reimbursed for over $316 million in COVID-19 related costs.
Treasurer Briner is grappling with an issue that touches the lives of hundreds of thousands – ensuring that those who have served the state can rely on their health coverage. "Ensuring the financial solvency of the State Health Plan has been a top priority for me since day one in office," Briner expressed his commitment and moreover expressed gratitude towards the audit team for outlining the magnitude of the fiscal challenge facing the plan, knowledge which is essential for crafting a path forward, as detailed by the Office of the State Auditor.
