Audit: Problem With Health Plan For State Employees

A state audit has determined North Carolina's health insurance program for state employees and retirees was set up without effective outside oversight.

State Auditor Les Merritt's office said Wednesday the real power to run the North Carolina State Health Plan rests with legislators.

That may violate the constitution's separation of powers and leave the executive who runs daily operations without appropriate oversight.

Legislators were told last month the plan could run out of cash to pay claims from its 650,000 members by late 2008, and that it would need at least another $100 million.

A spokesman for House Speaker Joe Hackney said a legislative oversight committee hasn't reviewed the audit. The plan's executive administrator said he and his staff didn't dispute the report.

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  • by Steve Location: Kinston on Oct 15, 2008 at 08:51 PM
    I have never seen such mismanagement of a state government such as the state of NC has had to suffer through in the last 16 years. It has to be the democrats fault---they have had a stranglehold on this state for as long as I can remember. Come on NC, give the other party a chance, they cannot due any worse. And one more thing, PLease do not reward any of them(i.e., Kay Hagan) by hoisting them on us at the Federal level. Make them work for a living for a while, like for the rest of their lives.
  • by Ted Location: Greenville on Oct 15, 2008 at 02:25 PM
    The State has THE worst insurance plan I've ever been a part of. While my coverage is free it cost me $415.00 per month to add my wife, and I'm only bringing home around $1,800. It is actually cheaper for us to buy her a private policy.
  • by Dwayne Location: Greenville on Oct 15, 2008 at 01:23 PM
    NC has some of the highest taxes of Southeastern states and we may need $100 million? Oh, no worries. Kay Hagan can just borrow it. It's time to vote out Democratic government in NC. McCain/Palin 08.
  • by Obama Snake Oil Co Location: Washington on Oct 15, 2008 at 12:09 PM
    And if you think this is a problem just wait until Obama gets elected. It will then be a national program to bail out. This is exactly the point to why the republicans have not OKd any heathcare program, lack of oversight and the expense of oversight. If you think the federal government is efficient in running a company?, I could use some of that drug. Of course this is brought to you by democrats in NC. We all know they are part of the problem in this state. Witn has done many stories on them and they act like the just don't care what we think. The will know just how we think in Nov. Time to clean house.
  • by Devil Dog Location: New Bern on Oct 15, 2008 at 12:00 PM
    I thought only the republicans were guilty of the lack of oversight. You mean the democrats would be inept also?

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