Treasurer Folwell Announces Millions in State Health Plan Savings

RALEIGH—Treasurer Dale R. Folwell, CPA, announced today that the State Health Plan (Plan) will save approximately $8.5 million beginning in January 2018 as a result of new terms negotiated for the administration of NC HealthSmart, the Plan’s healthy living initiative that is administered by Active Health Management.  The program offers health and wellness resources and services to support Plan members’ personal health goals.

The renegotiated contract is for the first nine months of 2018 and places additional limits on the scope of the services provided. The Plan is refocusing its population health management strategy to the five diseases that are the largest drivers of cost: chronic obstructive pulmonary disease (COPD), congestive heart failure, coronary artery disease, diabetes and hypertension. In addition, the Plan seeks to eliminate duplication of services already provided by other vendors.

“We believe that it is essential that the Plan focus on those who need the resources the most and where we can make the biggest impact,” said Treasurer Folwell. “In addition, we are looking to partner with other groups that provide similar services either free to the public, or through existing contractual relationships, to continue to offer Plan members the resources they need to get healthy.”

Treasurer Folwell pointed to the fact that a single patient could have up to five different case managers provided through the Plan for any one illness. “We need to be more efficient in the delivery of population health management services,” added Folwell. “It will create the best possible path for a good outcome for the Plan member, and for the state’s taxpayers.”