RALEIGH – State Treasurer Dale Folwell and the State Health Plan have announced that Humana has been chosen for the Medicare Advantage Fully Insured Plan and Related Services contract. According to the Office of the State Treasurer, the annual cost savings under the new contract will be approximately $197 million a year. The contract is for three years, bringing the total savings to $590 million. 155,000 State Health Plan members are estimated to be enrolled in a Medicare Advantage Plan.
“This unprecedented agreement uses our largeness to generate substantial savings for the plan, and reduce liabilities, all while offering our Medicare members more affordable options for their dependents,” said Folwell.
Services under the new contract begin on Jan. 1, 2021, and will provide Medicare Advantage products to the plan’s Medicare-eligible members.
Folwell said that the savings in the deal will allow retirees and their eligible dependents to enjoy the Medicare Advantage Base Plan premium-free beginning next January and with no benefits changes. Members in the base plan currently pay $112 per month for spousal coverage and $224 for family coverage.
NSJ asked Folwell how a deal with that level of savings came to pass.
“Competition,” Folwell said. He added that this announcement comes on the heels of $170 million savings in a new contract with Blue Cross and Blue Shield of North Carolina.