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For Immediate Release

December 22, 2011

Treasurer Announces New State Health Plan Board of Trustees
State Health Plan to transfer to Department of State Treasurer effective January 1

RALEIGH – State Treasurer Janet Cowell has announced the new Board of Trustees for the State
Health Plan for Teachers and State Employees. The 10-member board is made up of plan members, as
well as other experts in medicine and health administration. The board will be responsible for decisions
regarding vendor contracts and the design of employee health benefits.

The State Health Plan will become a division of the Department of State Treasurer effective Jan. 1,
2012. The Plan provides health care coverage to more than 664,000 teachers, state employees,
retirees, state university and community college personnel, and their dependants.

“Effective administration of the State Health Plan is critical for the health and welfare of these 664,000
public servants as well as the financial stability of the state,” Cowell said. “This board is a diverse group
of teachers, state employees, and experts with considerable experience in issues related to employee
health benefits. I am optimistic that we can improve both accountability and efficiency of the Plan as well
as health outcomes for members.”

The Plan currently reports to a legislative oversight committee within the General Assembly, which
lacked the resources to provide day-to-day oversight of Plan operations. Over the past 20 years,
numerous reports have suggested that a Plan of this size and scope be moved to an executive agency.

The transfer of the Plan to the Department of State Treasurer will mean administration of health and
retirement benefits will be under one roof, allowing for improved communication and coordination.

Board members are:

  • Paul Cunningham is the dean and senior associate vice chancellor for medical affairs at the Brody
    School of Medicine at East Carolina University. He was appointed to the board by Treasurer Cowell.
     
  • Virginia “Kim” Hargett is a physical education teacher at Marshville Elementary School in Union
    County. She was appointed to the board by Gov. Beverly Perdue.
     
  • Noah Huffstetler is the managing partner at the Raleigh office of Nelson, Mullins, Riley &
    Scarborough specializing in health care law, administrative law, and business and appellate
    litigation. He was appointed to the board by the President Pro Tempore of the N.C. Senate.
     
  • Bill Medlin is an associate executive director of the Professional Educators of North Carolina. He
    was appointed to the board by the Speaker of the N.C. House of Representatives.
     
  • G. Genell Moore is the vice president of the Carolinas HealthCare System. She was appointed to
    the board by Gov. Beverly Perdue.
     
  • Warren Newton is the vice dean for education and chief education officer at the University of North
    Carolina School of Medicine. He was appointed to the board by the Speaker of the N.C. House of
    Representatives.
     
  • David Rubin is a professor emeritus of the Kenan-Flagler Business School at the University of
    North Carolina at Chapel Hill. He was appointed to the board by Treasurer Janet Cowell.
     
  • Michele Shaw is an officer and general instructor with the N.C. Department of Corrections. She is
    also the former chair of the State Employees Association of North Carolina’s 22nd District. She was
    appointed to the board by the President Pro Tempore of the N.C. Senate.

Cowell and Andy Willis, Director of State Budget, will serve as ex-officio board members. Willis will not
be a voting member and Cowell will only vote in cases of a tie.

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The State Health Plan for Teachers and State Employees provides health care coverage to more than
664,000 teachers, state employees, retirees, current and former lawmakers, state university and
community college personnel, state hospital staff and their dependents.