SPOTLIGHT STATE EMPLOYEES ASSOCIATION OF NORTH CAROLINA
BOARD OF GOVERNORS MEETING
MAY 17 - 18, 2019
TOP 3 TAKEAWAYS
1 The Clear Pricing Project Update Beginning January 2020, State Health Plan (SHP) payments for services will be based on Medicare reimbursement rates plus an average margin of 82 percent. This method, known as reference-based pricing, replaces the current practice of paying providers at secret rates that range from as little as 72 percent of Medicare rates to more than 900 percent. Hospital executives oppose the Clear Pricing Project: »» They have launched a campaign to strip the State Treasurer and the SHP Board of Trustees of their power to enact the change through House Bill 184. »» The House Health Committee held a hearing on Feb. 19 for stakeholders to explain their positions. Treasurer Folwell and the hospital executives were invited to testify, but Chairman Greg Murphy refused to allow SEANC to speak at the meeting. HB 184 passed the House in April, but the Senate has not acted on the bill. »» SEANC has held town hall forums in Greenville, Chapel Hill and Raleigh to allow members a chance to talk directly to Treasurer Folwell, legislators and the other side. To promote and defend the Clear Pricing Project, SEANC launched Affordable Healthcare for North Carolina (AHCNC). This nonprofit organization will: »» Inform lawmakers and the public about the Clear Pricing Project through advertisements, videos, social media, and more. »» Recruit other organizations and individuals to join our cause. »» Engage our supporters to take grassroots political action. »» SEANC members are urged to visit the site www.ahcnc.org — follow AHCNC on Facebook and Twitter, and share the video and other content with your friends, family and colleagues. The N.C. Department of Insurance approved contracts for providers to sign on to the Clear Pricing Project. Treasurer Folwell has begun working on signing hospitals and doctors onto the plan.
2 State Budget Update The House budget proposal passed on May 3 in a 61-55 floor vote with little debate.
WE CAN’T LET UP NOW! Visit SEANC.org/engage to contact your Senators and tell them: • The House budget is unacceptable. • Oppose Bill HB 184.
The budget proposes a raise of only 1% or $500, whichever is greater, for most state workers. Adding insult to injury, this raise would not take effect until Jan. 1, 2020, which is six months into the state’s fiscal year. Overall, the proposed budget allocates a measly $44 million for pay raises — less than 0.2% of the entire $24 billion budget. The budget bill does not contain a cost-of-living adjustment or supplement for retiree pensions for the coming fiscal year, even as lawmakers touted revenue surpluses and tax cuts for corporations. The proposal also severely underfunds the State Health Plan, containing just $39 million in the first year of the biennium. This will force the plan to spend the bulk of its reserves. The House budget also ignores wage compression issues throughout state government and fails to provide high enough salary increases for key hard-to-fill positions. Fortunately, this is not the final budget. The Senate will make its own proposal in late May. Continued on page 2