Auditors Critical Of NC Health Plan Contract

State auditors say North Carolina's health insurance plan for workers could have saved more than $1 million if it had written a better contract with a hospital and monitored rates more closely.

State Auditor Beth Wood's office released an audit Wednesday of the North Carolina State Health Plan for Teachers and State Employees and a contract with Wake Forest University Baptist Hospital.

Auditors say plan officials didn't take advantage of outpatient discount rates allowed in the contract between 2003 and 2008 because they lacked contract monitoring and failed to seek information that could have led to expense reductions.

The audit said the health plan failed to recover about $640,000 from the hospital related to higher payments.

The health plan agreed with Wood's findings and said improvements have been made.


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  • by ? on Sep 7, 2011 at 01:38 PM
    I know Bev is some how going to blame this on the Republicans, even though they were not in office when the contract was made. It’s just more proof that running a state the same way for over 100 years is just idiotic. Of course the Republicans wouldn’t have done any better, but this walking contradiction needs to go.
  • by Chuck on Sep 7, 2011 at 10:51 AM
    No Suprise here.Their has been nothing but problems every sense this govenor was elected. She either does not oversee things or has stupid advisors.. A "No Bid" Contract with BCBS doesn't seem right. "Put It Out For Bids". This health thing is only latest thing .Bet their are dozens more just like this no bid contract. FRankly i really do not care.
  • by Employee Location: NC on Sep 7, 2011 at 10:40 AM
    State employees have been trying to tell Legislators and the public for years that the State Health Plan, administered by BCBS is wasting millions of dollars every year, but no one will listen. Blue Cross gets a no bid secret contract and has no incentive to lower costs. An employee now pays approx. $700 a month for family coverage.
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