Did You Know?

We have heard a lot about healthcare reform at the federal level, but it is worth remembering that the state of North Carolina is one of the biggest buyers of healthcare in the state. Spending on healthcare in FY 2008-09 breaks down as follows:

$3.5 Billion - Medicaid General Fund Expenditures
$1.7 Billion - State Employees Health Plan General Fund Expenditures
$700 Million - Mental Health General Fund Expenditures
$244 Million - Inmate Health General Fund Expenditures
$66 Million - NC Health Choice (SCHIP) General Fund Expenditures

$6.2 Billion Total

By comparison, the federal government spends about $7 Billion on Medicaid and the child health program in North Carolina, while Blue Cross Blue Shield of North Carolina had revenues of $5.2 Billion in 2008 (on paid claims of $10.7 Billion).

The implication is obvious: Whatever happens in Washington, the cost of healthcare will continue to make extraordinary claims on North Carolina’s resources. How the state manages these claims will be a huge issue in the years ahead.