NC Treasurer Directs BCBSNC To Cut Provider Rates for State Health Plan

On Monday, North Carolina Treasurer Dale Folwell, whose office oversees the State Health Plan, directed Blue Cross and Blue Shield of North Carolina (BCBSNC) to reduce provider rates paid by the Plan by at least 15 percent. According to the Treasurer’s announcement, the reduction will be implemented on “major contracts” that BCBSNC will be negotiating with providers starting this year. Read the announcement.

This move follows Treasurer Folwell’s previous statements that he would seek to reduce costs for the plan to ensure its solvency. [Read this March 2018 Business NC article.] The prospect of such a large proposed rate cut is nevertheless concerning, and could affect the ability of teachers and state employees to receive care.

The North Carolina Medical Society (NCMS) is gathering more information on the timing and scope of the Treasurer’s proposed rate cut, and how it may affect physicians and their patients. NCMS is looking for solutions that simultaneously keep costs down and improve health. Please watch for additional updates.


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  • Jane H. Simmons

    You really have to be kidding! Primary care is being hit from every angle with rising costs and lower reimbursements. Primary care docs are NOT the problem. This is a fine thank you for all the hard work we’ve put in for PCMH and BQPP. I certainly hope our friends at the NC Medical Society will advocate for this suggestion to be reconsidered.

  • Melissa H White

    What about the other hard working North Carolina residents who have to pay for their coverage? Why should providers take a cut for a plan that already has more benefit and no “Medical Policy Rules” like the other BCBSNC plans?