Judge denies NC treasurer’s request to block Atrium program for State Health Plan members: Officials

RALEIGH, N.C. (WNCN) — A request from the North Carolina State Health Plan to block a new program from Atrium Health for their members was denied by a judge Tuesday, officials said.

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North Carolina State Treasurer Brad Briner, who chairs the State Health Plan Board of Trustees, took legal action against Atrium Health over its Affordability Program.

The health system said the program will lower out-of-pocket costs for State Health Plan members, but the state treasurer argued it was illegal and could cost taxpayers more by attempting to “usurp and circumvent” his authority to determine coverage and benefits.

On Wednesday, both sides announced a North Carolina Superior Court judge denied the State Health Plan’s request for a temporary restraining order against Atrium’s program.

Atrium noted the court ruled the State Health Plan was unlikely to succeed on the merits of their case.

Steve Smoot, the president of Advocate Health’s North Carolina and Georgia Division, which Atrium Health is a part of, issued a statement following the ruling.

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“We’re pleased by the court’s ruling to deny the temporary injunction,” Smoot said in his statement. “From the very start, this has been about the people we serve: the more than 80,000 teachers, first responders, state employees and their families, from across North Carolina, who trust Atrium Health with their care.

“Thousands of State Health Plan members have told us they didn’t want to choose between paying more and leaving the physicians and care teams who have walked with them through some of life’s most serious health challenges,” he continued in his statement.

While stating this was not the outcome they wanted, the State Health Plan noted the judge acknowledged their argument that the program could irreparably harm the plan.

The treasurer’s department said other legal pathways were being explored.

“Every action we take is guided by the commitment to protect our members’ ability to access high-quality, affordable health care,” Briner said in a statement. “The State Health Plan is funded by member and taxpayer dollars and those resources are finite.

“When a single provider can manipulate the plan’s cost structure, dictate how benefits are designed or undermine our tiered network, it won’t just be disruptive, it could be catastrophic for the plan, its members, and taxpayers,” Briner continued in his statement.

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