NC Retirees Face Health Insurance Cost Increases as Board Approves Changes
About 177,000 retired NC state workers will pay significantly more for Medicare Advantage health insurance after trustees approved major cost increases Friday.
RALEIGH, NORTH CAROLINA — The State Health Plan’s Board of Trustees approved cost increases for retired North Carolina state workers enrolled in Medicare Advantage health insurance during a meeting Friday, while current employees may see savings through a preferred provider system.
About 177,000 retirees enrolled in the health plan’s Medicare Advantage insurance will face higher copays across multiple medical services starting next year. The daily copay for an inpatient hospital stay of one to 10 days will increase from $160 to $200 under the base plan, while radiology copays will jump from $40 to $75.
Out-of-Pocket Maximums to Rise
Out-of-pocket maximums will also increase for retirees. Those on the base plan will see their maximum rise by $500 to $4,500, while enhanced plan participants will face an increase of $400 to $3,700.
Jackson Cozort, associate director of the Retired Government Employees Association, warned that retirees will struggle with the additional financial burden. Unlike current workers, retirees cannot offset higher healthcare costs through job promotions or salary increases.
“For many retirees, healthcare costs are not simply another line item in their household budget,” Cozort said. “They’re among the most significant expenses they face.”
Advocates Express Concern
Suzanne Beasley, lobbyist for the State Employees Association of North Carolina, described the increases as potentially “pretty unbearable” for retirees. She noted that retirees have endured an extended period without cost-of-living adjustments.
“The Medicare Advantage increases are going to turn our folks on their head,” Beasley said.
Current Employees May See Savings
While retirees face higher costs, the approximately 575,000 state employees, teachers, and their dependents still working could benefit from reduced out-of-pocket expenses. Health plan administrators discussed a strategy Friday that would lower costs for those seeking care from designated “preferred providers.”
The State Health Plan covers approximately 750,000 people total. Under the preferred provider system, health systems and specialists will offer care at reduced costs to the insurance plan, potentially creating savings for active employees and teachers.
State Health Plan Executive Administrator Tom Friedman and State Treasurer Brad Briner participated in Friday’s board meeting where the changes were approved.
