We reported last week that Senate Bill 1207 includes a provision authorizing the Board of Trustees of the State Health (SHP) to assess a monthly premium to members who have opted to remain in the Indemnity Plan. Members who elected to join one of the new PPO would not be affected. Senate Bill 1207 does not specify the amount of the premium for the Indemnity Plan. The Trustees could require the payment of premiums starting as early as October 1, 2007.
This week the SHP staff held a series of meetings with representatives of employee and retiree groups to present a new alternative Indemnity Plan. While some details remain to be worked out, a general outline of this proposal is presented below.
Alternative Indemnity Plan
- Virtually the same benefits as the existing Indemnity Plan, including no cap on therapies and parity in Mental Health benefits.
- No deductible or co-insurance on primary care physician office visits.
- Uses the same health care provider network as the State Health Plan’s PPO options.
- No premiums charged to active or retired state employees and teachers.
- Premiums still would be applied to members who elected to remain in the existing Indemnity Plan.
- Open enrollment would take place in September, 2007.
This new proposal would require approval by the General Assembly. As indicated above, the State Health Plan still would implement employee/retiree premiums for the existing Indemnity Plan. This would provide an incentive for members to move from the old plan to the new alternative. The SHP staff indicates that if the proposed premiums and the new alternative are not enacted, the deductible and co-payments of the existing Indemnity Plan must be increased substantially.
The N.C. Retired Governmental Employees’ Association remains opposed to any proposal that requires the payment of premiums by active or retired employees. While we find a great deal of merit in the alternative Indemnity Plan proposal, we cannot support it so long as it remains linked to the imposition of premiums for the existing Plan.
