South Charlotte Today

North Carolina Treasurer Dale Folwell announced that $9.4 billion contract was given to Blue Cross and Blue Shield of North Carolina to manage the State Health Plan. 

The State Health Plan Board of Trustees awarded the contract, which will go from 2022 to 2024. Approximately $37 million a year will be saved with this contract in state administrative costs. 

“The savings this contract generates will place us on a more sustainable path,” Folwell said. “I look forward to working closely with the Blue Cross NC Board of Trustees on our continued relationship as we look ahead to improve transparency and lower health-care costs for our plan members who teach, protect and serve.”

Aetna and United Medical Resources also bid on the contract, but Blue Cross of North Carolina outbid both. The new contract will have Blue Cross process claims and premium bill services. The company will also look over 25,000 health care providers. 

Approximately 727,000 teachers, state employees, lawmakers and state and community college staff are covered by the State Health Plan. 

“I applaud the Plan staff for completing a months-long, fully transparent and rigorous procurement process that paved the way for this award,” Dee Jones, State Health Plan executive director, said. “Their hard work and dedication during the procurement process has paid off, and the Plan and our members will be able to reap the benefits.” 

Blue Cross has negotiated with medical providers in the past on prices, which could help save $170 million in network savings. 

Once the contract is over in 2024, state officials will assess Blue Cross of North Carolina's performance. 

“The employees of Blue Cross NC are excited to continue serving our state’s teachers and state employees,” Gerald Petkau, Blue Cross NC interim CEO and chief operating officer, said. “We look forward to working with Treasurer Folwell and the SHP leadership team to deliver quality, affordable health care.”