What will North Carolina’s state government take next, if they already confiscated about $800,000 of Greensboro’s beer and wine tax as revenues fall, expenses rise, and there’s no more rainy day funds to raid?

North Carolina's state employee health plan got out of a deep hole last spring thanks to a $250 million cash injection from the state's rainy-day reserves…

 

Plan officials told lawmakers last week they already paid out 8 percent more for claims than they had budgeted in July and August…

 

An outside actuary now predicts the plan will lose $54 million this year, instead of making a small profit as predicted a few months ago.

 

With the rainy-day fund about out of money and tax revenues still dwindling, North Carolina is joining insurance plans for state employees nationwide looking for ways to cut expenses.

 

…The belt tightening for North Carolina's health plan is largely about meeting expectations for a change after it missed projections by a whopping $138 million for the year ending in June 2008.

 

…expenses by Blue Cross and Blue Shield of North Carolina, which processes claims and administers the program, were $36 million more than expected. While the state's contract allowed Blue Cross to pass along any costs, plus profit, to the plan, Blue Cross didn't have to explain how those costs were calculated…

 

…the State Employees Association of North Carolina, a frequent critic of Blue Cross, accuses the company of hiding revenues in the form of undisclosed costs.

 

The Associated Press

Sunday, September 20, 2009

 

 

North Carolina confiscates taxes collected for local governments.