(The Center Square) – Nearly 750,000 teachers, state employees, retirees, lawmakers active and retired, and members of higher education on Tuesday learned Atrium Health’s Affordability Protection Program would help provide the lowest copays and overall cost-share at Atrium Health facilities for State Health Plan members.
It’s a move made, in part if not whole, because new tier designations assigned by the State Health plan didn’t put Atrium Health in the access tier or preferred tier, the Charlotte-headquartered healthcare system responded. First-term Republican state Treasurer Brad Briner said it won’t see the light of day.
It would, he believes, bankrupt the plan. Briner questions if it is even legal.
“Atrium is playing shell games with our State Health Plan members, promising lower costs on the one hand while bankrupting the plan on the other,” Briner said. “We know their announcement looks all shiny on the surface, but this is actually the type of greed we’ve all grown accustomed to in healthcare, and it could become multi-hundred dollar problem for the State Health Plan."
“Here’s the simple truth. Some of our members in Charlotte and the Triad would pay less out of pocket under Atrium’s scheme. But the State Health Plan will be subject to Atrium’s high rates, which are the highest rates for all hospital systems in 2027.”
Bankruptcy of the plan would threaten the state’s top-shelf credit rating. Additionally, recruiting and retaining state employees – with government and education at the forefront – would become more difficult.
At the June 30, 2025, actuarial valuation, the State Health Plan and Retiree Health Benefit Fund had net other postemployment benefits liability of $21.95 billion, according to the state’s Office of Budget and Management. For context, that’s a marked improvement from $29.3 billion in 2010 and $40 billion in 2016.
The Atrium announcement is getting legal review by the treasurer’s office. Even as Briner says to ignore it, open enrollment starts next week and runs to Oct. 30.
Briner said higher rates mean the State Health Plan will need more financial support from taxpayers, along with higher premiums for each member. He said the new tier structure was followed by excellent plans from UNC Health and Novant that lowered members’ costs and those of the State Health Plan.
“If Atrium’s scheme proves to be legal, and we doubt it, and our members continue to seek care at Atrium, there’s no other outcome other than severely higher premiums and less benefits for our members starting in 2028," Briner said.
In a release, Atrium Health’s plan, the president of Advocate Health’s North Carolina and Georgia Division, said the tier designation was out of its hands.
“While we can’t control the tier designation assigned by the State Health Plan, we can take action to ensure our dedicated public servants across the state are not left to face the consequences of these decisions," said Steve Smoot. "We continue to hear from State Health Plan members who are concerned about higher costs and the possibility of having to change providers, particularly for specialty care. We didn’t want our patients to have to choose between the care team they trust and affordability. The Atrium Health Affordability Protection Program is our solution, helping enrolled members continue receiving the care they choose without higher costs standing in the way."