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FOR IMMEDIATE RELEASE

May 19, 2014

Treasurer Cowell Announces State Health Plan to Forgo Scheduled Premium Increase

Recommends $23 million in savings go to salary increases

RALEIGH, N.C. – State Treasurer Janet Cowell today wrote the leadership of the General Assembly to inform them that the State Health Plan’s strong financial situation has led her to recommend that the Plan forgo its scheduled premium increase for 2015. Cowell, who consulted with the Plan’s Board of Trustees, estimated that the move will have a positive impact on the State Budget by $22 million in General Fund and $1.05 million in Highway Fund appropriations that were previously budgeted for employer contributions. In her letter, Cowell recommended that the savings go to salary increases for state employees and teachers, who are members of the Plan.

“I am pleased to report that the State Health Plan is in sound financial shape,” Cowell wrote. “As you consider ways to enhance the compensation for educators and state employees, I hope that you will consider using these savings for salary increases.”

Cowell also praised legislators for their decision to move the State Health Plan to the Department of State Treasurer in 2012. “The Board and I have successfully reduced the unfunded liability associated with retiree health benefits by nearly $10 billion, without reducing benefits for members,” Cowell wrote.

Read Treasurer Cowell’s letter and the statement signed by the Plan’s Executive Administrator and Lead Actuary​

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The North Carolina State Health Plan for Teachers and State Employees provides health care coverage to more than 670,000 teachers, state employees, retirees, current and former lawmakers, state university and community college personnel, state hospital staff and their dependents.