Latest / The SEANC View / State Health Plan Shakeup: Atrium Moved Out — What It Means for You
Transcript
- 0:00Hello, everyone. Welcome to another edition of the Scenic View podcast.
- 0:03I'm John Owens, along with Artis Watkins.
- 0:06And the best laid plans of mice and men usually go around, from what I think
- 0:12that's a saying. I don't know. Heard it somewhere.
- 0:15But we did record a whole podcast on Wednesday, and it was great and in the
- 0:20can. And then all of a sudden, we have breaking news from the state health plan.
- 0:26So we called Thomas Friedman, the executive administrator, and asked if he'd
- 0:31come on and explain a little bit about what's going on. And he graciously agreed to do it.
- 0:37So he is here in the studio with us. Hey, Thomas. Hello.
- 0:40And the news that we're talking about, obviously, is the announcement that Atrium
- 0:45will be considered out of network in the plan come January 1st, right?
- 0:52Except for a handful of rural hospitals that we're trying to work some stuff
- 0:55through with them that based on the agreement we signed in early September,
- 0:58based on what Atrium's doing, it doesn't matter network or not network for folks.
- 1:02And I think that's something we should spend some time clearing up. Yeah. But yes.
- 1:05Okay. So let's review what's going on, Artis. So start all the way back at,
- 1:10I guess, the plan's tier structure. So y'all announced, Thomas,
- 1:15that the state health plan would have a tier structure moving forward.
- 1:20Sometime in the summer, maybe June, was it, that you announced it?
- 1:23Yeah, so we voted on the tiering structure in March. And then we rolled out
- 1:28the plan design, just that we would do tiers.
- 1:31And then we rolled out our tier, kind of the preliminary look at things in June.
- 1:35And between June and July, that's when Duke Health came in and said,
- 1:37hey, y'all, we're not going to be non-preferred. What is it going to take from
- 1:41a discount point of view to get into the access tier? So that has been in place since July.
- 1:46Okay. Now, why did y'all make a tiered structure? That's the question a lot of people have.
- 1:51And one, I would just start with the traditional model of health insurance isn't working at all.
- 1:56When I look about the last few years when we've gone on that traditional structure,
- 2:00just to make it through the last two years, we needed an additional $390 million,
- 2:04$380 million from the General Assembly. That's money. That's COLA money. That's RAISE money.
- 2:09They've got to go above and beyond because prices keep going up.
- 2:12And we asked for almost $800 million more from members between premiums and a worse benefit.
- 2:19Yeah. A worse benefit that makes healthcare more unaffordable.
- 2:23Is leading to our membership getting sicker because we're not investing in their
- 2:27health and, you know, the prices of everything are going up.
- 2:29So we were asking folks to pay more for a worse benefit that is getting them
- 2:34sicker and to make matters worse, prices are going to expect it to go up next
- 2:38year faster than any year on record for healthcare costs in the last 17.
- 2:42So we said, yeah, this isn't it. This is not a sustainable approach.
- 2:46We need providers to compete for state employees' business.
- 2:51There are a lot of great things about state employees and members of the state
- 2:53health plan, one of them is, and
- 2:56I think we all agree, is they're the most dedicated folks to their jobs.
- 2:59State employees, corrections officers, stay at their jobs. Teachers stay at
- 3:01their jobs. Folks at DOT stay at DOT.
- 3:03They're going to be here for the long haul because they're invested in improving
- 3:06the state. And our retirees stay on the plan.
- 3:09So we said, okay, we have the most people who stick around the longest at their
- 3:14jobs and we're paying y'all the highest rates from a commercial perspective.
- 3:18And y'all have been on top of that for a long time.
- 3:20That's to the hospitals. To the hospitals. That's what you're saying.
- 3:22Yeah, we're paying that to the hospitals.
- 3:24Yeah. We're not paying the people the highest rates by any stretch of the imagination.
- 3:27You know, we're on average $63,000 a year with very little growth.
- 3:31I think you all have been on top of that one.
- 3:33So we're paying you all hospitals the most. We need you to compete for our business.
- 3:38And we're, truth this like a business people, we're going to treat this fairly,
- 3:42we want the best discount we can get.
- 3:45And in exchange for that, we're going to make it, we want to take the benefit
- 3:48back to 2012 to make it more affordable for members to go see you.
- 3:52So you're going to be that preferred provider. So you're going to get more members
- 3:57coming to you because we have a smart membership group, and I'm going to hit
- 4:00on another point of that later, that are price sensitive and good shoppers for care.
- 4:04And they're going to stick with you for the long haul. So give us your best discount.
- 4:08UNC and Novant, obviously UNC makes a lot of sense. They have a lot of state employees on the plan.
- 4:13And then Novant, they jumped in and said, we're going to give you a tremendous
- 4:15discount to be your preferred partner.
- 4:18And we're going to make up those discounts that we give you by seeing more patients,
- 4:23by seeing more state employees, and by having that long-term relationship.
- 4:26We're going to make the investment to be the provider for your patients.
- 4:30I just want to also say, it was just announced today that Novant had the most
- 4:33A from a quality and safety score, leapfrog scores in the state of North Carolina.
- 4:37So we're not talking about budget-basement providers for care. Right.
- 4:41We're talking about high-quality providers. Yeah, you told our board the last
- 4:44time you spoke to the Scenic Board, you were looking at a combination of cost
- 4:48and quality. Cost, quality, and access.
- 4:51What are you going to do to get more folks in faster?
- 4:54So right now, UNC and Novant are building state health plan specific access
- 4:59points where they can get white glove treatment to get folks in faster.
- 5:02So they're investing not just in their discounts, but building an infrastructure
- 5:06specifically for state employees.
- 5:08So that was the premise and then you got to be preferred and we knew in rural
- 5:12communities across north carolina you think about the eastern part of state
- 5:15the far western part of the state there's not two or three health systems in those geographies,
- 5:20so we didn't feel right up front just saying you need to give us a discount
- 5:23right like they don't have competition they're not get the money back we will
- 5:26figure out a way to lower costs there in time,
- 5:30but that's not where the big dollars are of our spend is right now so he said
- 5:33we're going to treat those folks as the benefit that they have today.
- 5:37But because we had to make the benefits so much worse the year before,
- 5:41we're going to pay for you some of that preferred savings to reduce the cost
- 5:44of specialty care in rural communities.
- 5:47Let me ask you one question before you move on, because you said UNC and Novant,
- 5:52accepted the challenge, I guess.
- 5:54Now, a lot of the questions that we're seeing on social media and whatnot was,
- 5:59was Atrium given a chance to be in this tier?
- 6:02Everyone was given a chance to be in this tier that could compete, you know.
- 6:05I find it very hard to believe, given the number of webinars.
- 6:08We talked through the hospital association. We've had multiple board meetings.
- 6:13This wasn't a secret. This wasn't trying to pass something on a consent agenda
- 6:17at a secret, you know, at a secret meeting.
- 6:19We were pretty out in front on what we were doing here. Yeah,
- 6:23I think Atrium will tell you they feel completely blindsided that they never got a chance to bid.
- 6:30You know, they, I look at Duke Health as a perfect example.
- 6:34And called before the board, our last board meeting, you know,
- 6:38CEO of the company, it's like, Tom, we're not going to be non-referred for state employees.
- 6:42Yeah. I was like, you're just going to have to give us a great deal.
- 6:44They said, done. We figured it out in five phone calls.
- 6:48So it was set up for the board meeting. I was down in Novant,
- 6:51November of 2025. I said, this is the way that things are going.
- 6:54I want you, you want to compete hard on this lantern business and win.
- 6:57That is how we're going to do this. We're going to start working with these people.
- 7:01They didn't want to go any cheaper than they were. They said,
- 7:03you know, we got other things, other priorities. I get it. That's fine.
- 7:06There's a lot of folks across the state of North Carolina.
- 7:08I said, I'm going full steam ahead with the folks that win this.
- 7:11Knock my stocks off if you can.
- 7:13I think I got one email from them between November, January,
- 7:17maybe one or two emails about, and I said, hey, I'm negotiating this.
- 7:21I'm happy to talk to you guys about maternity care right now,
- 7:23because we've been trying to do something like that.
- 7:26Last I heard from them on things. Meanwhile, I've got UNC, Novant,
- 7:29Duke banging down our door like, let's get this done. Let's get this going.
- 7:33I don't want to beg for a discount. We are the customer.
- 7:37We're the largest customer. We are the largest customer.
- 7:40For them to presume that it is my job as the customer to beg them for a deal
- 7:44when I have everyone else racing towards us, it's sort of preposterous to me.
- 7:48But then they did come in after the fact, right?
- 7:53They came in after the fact and said, we're happy to tie, right?
- 7:56We're happy to match. What does that mean?
- 7:59Offer the same price as that Novant offered. I'm like, y'all, we can't do this.
- 8:04They make a discount rate based on getting more volume and being a good partner.
- 8:08We lose all credibility with everyone if we say we don't honor our word and
- 8:12we're not good partners to people.
- 8:14So let's talk about what that means, because you have to administer the entire
- 8:17plan for all state employees and non-Medicare retirees in 100 counties and then
- 8:24wherever they live, sometimes elsewhere.
- 8:27That's your job, and you've got to deal with that. So we've got state employees
- 8:31and retirees who are saying—.
- 8:33Atrium is my provider. I still want them. I don't really care about all that stuff.
- 8:38You said early on something that we need to go back to. The reason that we don't
- 8:43have a choice not to care is that if the General Assembly has to keep pumping
- 8:48money into this thing because y'all aren't getting a better deal,
- 8:52then that money will come from raises.
- 8:55It'll come from retiree money. It'll come from maybe the employer contribution
- 8:59going into the retirement plan.
- 9:01So that's why you would care later down the line if the state health plan paid
- 9:06too much because it leaves nothing for the other things you hold sacred.
- 9:10And it's awful that employees have been put in this position.
- 9:13But to be clear, the state health plan did not put employees and retirees in this position. No.
- 9:19And I understand why you would want to blame the state health plan.
- 9:23You know, insurance companies don't have a great reputation across the country, you know, writ large.
- 9:29But we We are not an insurance company. I'm a state employee.
- 9:31We don't get to keep the money.
- 9:33There's no profits that go into me getting a timeshare in the Bahamas or anything
- 9:37like that. Yeah. Oh, and some people have said, oh, they must be on the take.
- 9:41Yeah, we're on the take. We're on the take, too, online. Yeah.
- 9:45Because people can't make it make sense that all of these people are very upset,
- 9:51with one hospital system and that it's not the hospital system.
- 9:54That's right. That might be the problem. it's not the hospital system.
- 9:58That didn't answer the call of the clear pricing project it is that it is not
- 10:04their fault who has continued to raise prices across the board you know,
- 10:08at any point in time they could go to etna they could go to blue cross and say
- 10:11hey our rates are too high we want to make them more competitive they don't
- 10:15need my sign off for that i can i'm a state employee i don't get to make those decisions for,
- 10:20their whole book of business that's not the route they've taken they've waited to hey,
- 10:25we didn't compete we didn't win now we're frustrated by it oh they were serious about this.
- 10:33Let's try to make this as confusing as possible. And we went back to the table
- 10:38with them in good faith after, in July and August, and said,
- 10:41hey, let's work something out.
- 10:44We understand we want to make healthcare more affordable in rural communities
- 10:47where there isn't that competition.
- 10:49But y'all, you gotta give us a discount on this stuff, right?
- 10:53Like, this is too expensive.
- 10:55I can't go back on the rates we're getting from Novant and UNC and some of those more urban markets.
- 11:00Let's think about these rural markets and happy to bring those folks into the
- 11:04access tier if you can cut prices for those services.
- 11:07You know, they didn't cut them as low as Duke did, I'll tell you that much,
- 11:10but they were able to cut the rates. We were able to kind of work out something
- 11:13for continuity of care for our sickest folks, where we get a little bit of a discount.
- 11:18I left that September 12th agreement, September 14th agreement.
- 11:21It's like, all right, we're good. Open enrollment's starting in a few weeks.
- 11:24Let's get these folks loaded in the access tier so providers can look.
- 11:27We'll keep a lot of their primary care docs in the preferred tier.
- 11:30We saved a little bit of money. Members are going to save a good amount of money.
- 11:34I think we're good. We're building the relationship in a positive direction
- 11:37so that as things evolve and go, maybe there's something more to do there at a point in time.
- 11:42And then we were entirely blindsided when they rolled out their patient affordability
- 11:46program. They didn't tell me.
- 11:49Someone from Novant actually reached out to me at 6.10 in the morning,
- 11:52let me know that was happening.
- 11:53Then our phone kept blowing up, and I was like, hey, this doesn't feel like
- 11:58a partnership move to me. And they're like, oh, that's not our intent.
- 12:01We kind of look back and realize that they were communicating with community
- 12:04colleges during our implementation planning with them that, hey, we're going to do this.
- 12:10Here's a quote. Will you save this quote for us in our press release?
- 12:13Yeah, we saw those quotes from— And it was like the higher ups.
- 12:17Yeah, it wasn't rank and file folks, obviously.
- 12:21But they were speaking for their employees. I'm kind of wondering if some of
- 12:24them don't regret that, actually.
- 12:26You know, I hope so. And we reached out to a few, and a lot of them didn't do it.
- 12:30A lot of them just sent us the note and be like, hey, what's the deal here?
- 12:34And we're like, you know as much as I do. And you knew before I did.
- 12:38So from there, we basically said, hey, you know, you're offering something.
- 12:44You know, their point was, hey, we just don't want to lose any patients.
- 12:48Right. Well, no one does. No one does. And so I was like, well,
- 12:52you don't, state employees are really smart and they're very price sensitive.
- 12:56If you offer something so much richer than they're being offered,
- 12:59they're going to take it because they're smart people that like,
- 13:01and you do have good doctors.
- 13:03They're going to take that. And you're leaving us on the hook,
- 13:06the state health plan. I've been very clear. We don't have any money. I didn't.
- 13:09So let's explain a little bit about what they, I mean, we've done it in other
- 13:12podcasts, So on our last podcast, or maybe the one before it,
- 13:17we talked about Atrium having put out a statement saying, the one you're talking
- 13:20about, that you learned.
- 13:22Crack of dawn, they never had told you before they were going to do it.
- 13:26And they announced, we're going to do an affordability protection program where
- 13:29we're going to allow patients who are state employees to pay us a little bit
- 13:35less even than they would if they were. A lot of bit less. Okay.
- 13:39Than they were if they were preferred tier patients.
- 13:42So it was about half, right? A few of the.
- 13:45It's less from a copay perspective and they're going to waive deductibles and
- 13:48co-insurance kind of across the board on things too. So it is just a flat number
- 13:52and they're going to, you know, they're going to write off the rest.
- 13:55Sounds great. Sounds great. Trojan horse. The problem is they're just writing
- 13:59off the members portion. They, you know, after in 2027, they're the ones that didn't agree.
- 14:05We don't have a contract with them for lower prices across the board.
- 14:08So the state health plan, we pick up the difference in that cost on the members
- 14:13behalf. So they're steering more members when we've told them we are running
- 14:16out of money to a place that has higher total cost of care.
- 14:21And they're going to write off that member portion because you're kind of good
- 14:23general rule of thumb. Remember when we called the plans the 80-20 plan, the 70-30 plan?
- 14:27It meant the member pays about 20% of the cost.
- 14:30The state health plan pays about 80% of the cost. So y'all's tax dollars,
- 14:34y'all's premiums and dollars, that's what's paying that 80%.
- 14:37So they're writing off some portion of that 20 or 30% and sticking that higher
- 14:42percentage bill to the rest of the members of the state health plan,
- 14:46taxpayers in North Carolina, and that just further compounds out.
- 14:49That's what you're saying. that's money for colas.
- 14:52That's money for raises. That's money to keep premiums down.
- 14:55That's money to lower taxes. That's just jacking that number up.
- 15:00And they say it can't increase. It'd be like, one, that's just madness to say
- 15:04that. Like, you don't know our rates with other providers. I'm telling you those are more.
- 15:09That's why they're preferred, is because we got a great deal.
- 15:12They kept saying it's not our intent to increase the cost of the state health fund.
- 15:16So what we've decided to do is take them at their word. If they really don't
- 15:19want to raise our costs and they are serious about reducing the cost of state
- 15:23employees through this really rich benefit.
- 15:26As you and I were talking beforehand, if we offer the same benefit that they're
- 15:29proposing to every member of the state health plan, it would raise our costs
- 15:33$800 million a year, every year.
- 15:36So we said, fine, you're going to offer our member this. I think it's inappropriate
- 15:40and it's a contract loophole that you can run this kind of shell game with.
- 15:45But if you're going to do that and you're serious about keeping costs low,
- 15:48we're going to move your providers to the out-of-network level.
- 15:52And I'm going to get to why that's confusing for members in a second,
- 15:54but that just means they're going to be writing off more of the expense.
- 15:58They're going to still hold the member harmless, but the state health plan isn't
- 16:02on the hook for that big, as big amount of money as they're going to charge.
- 16:05So tell me if I'm saying this right.
- 16:08The reason nothing would change for the member if Atrium meant what they sent out.
- 16:16Is that what they sent out said, no matter what is your designation?
- 16:20No matter what tier, no matter what tier our providers are in,
- 16:23we are only going to charge you this amount of money.
- 16:26You know, they've said that unambiguously. They haven't taken it down on their
- 16:29website. I checked today.
- 16:31That was one of my concerns is they're going to go ahead and take it down.
- 16:34But they said, no matter what tier, we're going to charge you this.
- 16:35So we are, our members, if you want to, we still prefer you go to our preferred
- 16:40providers because this scheme is not going to last forever.
- 16:43Yeah. But I don't blame members if they want to save money.
- 16:46Absolutely not, yeah. And to me, this aligns the incentive around our member
- 16:49saves money, the state health plan saves money, and they're saying that their
- 16:53incentive they want to work towards is treating state health plan members.
- 16:58Yeah. So up to a point, have at it. My concern is they can tap out of this at
- 17:02any time they want. They can just stop doing this and start charging members
- 17:07more money. I hope that is not the case.
- 17:10If it is, we're going to take care of our members.
- 17:12But they've made this promise. that no matter what tier you're in,
- 17:14we're only going to charge you this amount of money.
- 17:17So why would the state health plan give someone who's been such a bad partner
- 17:21over and over and over again even more money?
- 17:25If they want to dictate benefits, then they can afford to pay for those benefits
- 17:29and honor what they've told state employees.
- 17:32And why it's confusing to state employees right now is I talk to all my peers across the country.
- 17:38They wouldn't want to be you right now. Out of network, our members have learned
- 17:43and have been so disciplined for so long that out-of-network is a bad word.
- 17:46It's a four-letter word, right? Yeah. You don't do that.
- 17:48We are one of the few plans in the country where over 99% of our spend is in-network
- 17:53because we have smart people who go to in-network providers because it has been
- 17:56grained in their brains do this over and over and over and over again.
- 18:00I'm the envy of everyone. We talk to these audit companies and we're going to
- 18:02find all this money in your audit network claims. I'm like, y'all,
- 18:04our members don't do that.
- 18:06Our members know what they're doing from a network perspective.
- 18:09So when they hear out-of-network, their brains have been hardwired back bad.
- 18:15And we appreciate them doing that because that has been what we've asked of
- 18:18them and they've delivered time after time.
- 18:21But what Atrium is doing is unprecedented. So out of network at Atrium does
- 18:26not hurt the member of the state health plan.
- 18:29They are going to get the same benefit Atrium is promising of them.
- 18:32It just saves the state health plan money because it's asking them to do their
- 18:37part and actually write off those higher costs that they're charging folks.
- 18:41But I do worry that they can cut this out at any point in time. Well, exactly.
- 18:45There's no. You know, the irony is they're finally going to see what the impact
- 18:49of those high costs they charge everyone because they're going to be the ones
- 18:52absorbing them. You know, they talk year after year.
- 18:54Oh, costs aren't that high. It's like, well, you're absorbing it now. Yeah.
- 18:58Well, and OK, so I'll be honest with you.
- 19:00I thought if I were Atrium, honestly, I would have gone out of network on purpose,
- 19:07and fulfilled the commitment to the employees and done it for at least a year,
- 19:11to show we really mean it.
- 19:14We really do care about state employees. So we're going to do this thing that is giving from us.
- 19:21I mean, I figure even if it's as expensive as you say, if you got $10 billion
- 19:26in reserve sitting around plus, you know, another $40 billion with your parent company.
- 19:32You could do it for a year. If you want to say, look, sorry for all the frustration.
- 19:39Sorry we didn't get in on time. We really do want to show good faith.
- 19:43And at the end of a year, could you possibly think, I know these are probably
- 19:46more than one-year commitments, but could you think about letting us back in?
- 19:51That would have been a way to do it.
- 19:52But I think, I agree, that would have been a way to do it that comes across very authentic.
- 19:57The path they chose was to do their kind of announcement right before open enrollment,
- 20:02where everyone's kind of paying attention and dialed in.
- 20:05And they didn't go out of network because they wanted to have to write off less, right? Yeah.
- 20:11And charge the plan more. They wanted to keep their revenue,
- 20:14draw in more new patients, and get more revenue at higher. That would be my,
- 20:18I can't speak for them, but doing what you described would have been a much
- 20:22more altruistic way to do it, right? It's been like, hey, we understand. Yeah.
- 20:26I think it would have been a good business expense to show. I mean,
- 20:29I think it would have gotten the affection of state employees.
- 20:34So let's unpack. You said a whole lot of things right there.
- 20:36I want to unpack a few of them because I've been suffering through some of these,
- 20:41Facebook comments lately.
- 20:43One part you said about $800 million. It would cost the plan $800 million.
- 20:48If we gave everyone a benefit this rich. Now, let's talk about where that money would come from.
- 20:52It would come from raises, right? Right. It would come from basically from taxpayers.
- 20:56Right. You know, given the state of the budget, I think it would mostly just
- 21:00come out of members pockets. And retiree money. And retiree money.
- 21:03That's where it would come from. You know, there's not an amendment on the ballot
- 21:07this year to increase taxes.
- 21:08Yeah. No. There's one to cap it. Right. So that money would come from members
- 21:12in the existing pool of money if we wanted to offer something that rich. Yeah.
- 21:17Because we get a lot of comments that, you know, the legislature should just
- 21:20put more money in and pay this. Right. I mean, just make it happen.
- 21:25I get frustrated because basically that's saying, let the hospitals charge whatever
- 21:30they want, and then the state will pay it. That's right.
- 21:33And we've got to be smart consumers. Right. I think you—actually,
- 21:36no notes. You can have said it better.
- 21:38But, you know, I mean, and then at the same time, we're saying,
- 21:42let's cap taxes, and there's always a push for smaller government.
- 21:46Well, there's going to be a finite amount of money, and that amount of money is actually dwindling.
- 21:50So it would end up coming out.
- 21:54Trust me, it's not going to come out of anybody else's pet projects for their district.
- 21:58It's going to come out of the other parts of the benefit package for state employees
- 22:02and retirees. Or way higher premiums. Right.
- 22:04And Treasurer Reiner also has to watch over that entire retirement fund and
- 22:11the investments of that and then trying to turn that into a COLA.
- 22:14So if you're balancing those two programs that affect state employees and retirees,
- 22:21more than anything other than their paycheck—.
- 22:24You've got to be conscious of how much it costs the General Assembly to keep those programs going.
- 22:31So retirees in particular, rightfully so, have complained a lot that they haven't
- 22:37got COLAs in, what, nine years? Yes.
- 22:39And even before then, I mean, they are very woefully falling behind.
- 22:44Can at least some of that be explained by the cost of the state health plan
- 22:48and the cost to legislation?
- 22:50Well, again, you have a finite amount of money you can put towards the entire
- 22:54package, pay, health care, retirement.
- 22:58We cost too much. We are spending too much money. That is unambiguously true
- 23:02because we have tackled everything in the past as a revenue problem.
- 23:05We need to throw more money at the problem and not tackle the cost of health care.
- 23:10Yeah. And the problem with that is, one, it's the wrong thing to do in general,
- 23:13but the more you do that, the more prices go up. The more prices go for members,
- 23:17the less affordable it is to go to the doctor, the less affordable it is to
- 23:20fill your prescription.
- 23:21And then those folks get sicker and then health care costs more again.
- 23:25So we've created this cycle where we should expect the outcome we're getting.
- 23:29Yeah. Well, and I think Treasurer Briner coming in with the background he has,
- 23:34he comes from a Wall Street background.
- 23:37People think he hates hospitals. I can't imagine he has an opinion about hospitals writ large.
- 23:46What I think people who have his financial background hate is waste.
- 23:50Yes, they hate waste. Yeah. Hates waste and believes that partnerships should
- 23:55benefit everyone within the partnership.
- 23:57Yeah. Right? That's how he's been successful is, you know, lines incentives
- 24:00amongst partners and treats it like a partnership. You know,
- 24:05I think UNC would have very positive things to say about him. Maybe not me.
- 24:08Duke, Novant, our independent primary care practices, the ones we've been able
- 24:13to partner with, thousands of independent primary care doctors,
- 24:17independent specialists, ASCs, three large health systems.
- 24:21The treasurer doesn't have a problem partnering with people.
- 24:24He has a problem partnering with bad actors who aren't going to honor the deals they make.
- 24:28Yeah, state employees and retirees traditionally do not care if their elected
- 24:34officials are besties with big corporations. They care if they have the guts
- 24:39to stand up to them when it's appropriate.
- 24:43So I think that's what we're looking at here. You know, credit to treasurer
- 24:46Falwell set the stage that we need to think about this different.
- 24:49Oh, he had no fear of any of them? And, you know, maybe he didn't have the aligned
- 24:54incentives piece of it, but he wasn't afraid of him. And he was able to point
- 24:57at, like, yo, this is a cost problem.
- 24:59Right. And we've been able to build on that momentum to start getting people
- 25:03to see it as a cost problem and get some of those costs down.
- 25:08So, you know, credit to him for setting the stage for that.
- 25:11And, you know, I don't think anyone would accuse him of being best friends with
- 25:13hospitals. But I think they'd accuse him of understanding it's a cost problem.
- 25:17And I think the treasurer does. i think he just has a different approach to
- 25:20get those costs done that has proven by our ability to give free surgeries reduce
- 25:25cost sharing like i looked in 2011 2012,
- 25:28and we're going to keep pushing to make the benefit more affordable with our
- 25:31great partners so we can do those investments in health i like i said he doesn't
- 25:35get to keep the money i don't get to keep the money it goes back in
- 25:38to put money in the retirement fund putting money in raises and we want those
- 25:41things to be high for state employees because they deserve it.
- 25:45Just specific examples that I've gotten from social media. So one person I think
- 25:50is just mistaken in how she's explaining.
- 25:54I think she's thinking of last year's or this year's plan as opposed to next year's, right?
- 25:59But she says that the moving atrium to out-of-network will make your individual
- 26:04deductible go up to $15,000 and out-of-pocket max to $36,000.
- 26:09Does that – what is she talking about? Yeah, well, you know what?
- 26:13It will make those numbers go up in that range of things. But remember,
- 26:17Atrium is saying they're going to pay your deductible. They are saying they're
- 26:20going to pay your out-of-pocket maximum.
- 26:22So they are going to write that whole thing off on your behalf.
- 26:25That's what they said. Regardless of tier, we're going to pay your deductible.
- 26:28We're going to pay your coinsurance. We're just going to charge you this copay amount.
- 26:32So yes, the out-of-network benefit says this.
- 26:35But what Atrium is telling you is don't worry about that. We are going to pay
- 26:40your deductible. We're going to pay your coinsurance on your behalf.
- 26:43So, what happens if Atrium reneges, though, and... That, you know,
- 26:47that's what we're watching every day.
- 26:49Because they're not telling us what they're gonna do, they didn't tell us about this program.
- 26:53We have to, at some point, take them at their word that they're gonna do this.
- 26:56But if they drop out and say, we're not gonna cover your costs anymore,
- 26:59I do think it's very consistent with their character of, we promise we're trying
- 27:04to do the right thing, and they're not.
- 27:08If they don't, if they do drop out, we'll figure out a way. That's why we have
- 27:12those hospitals and rural communities in network, so members aren't penalized in that situation.
- 27:16We have tons of preferred providers across the Triangle and Triad area that
- 27:22provide really high-quality care at a low price for members at richer benefit.
- 27:27And that's why we prefer them, right? It's in the name, because they're the
- 27:30ones committed to being a long-term partner for our state health plan members.
- 27:35And that's what we really, really want. One, we need, if they're going to do
- 27:39this and play games with people's costs, they're going to have to be accountable for it.
- 27:45Okay, I have a question because of the Atrium-WakeMed merger and how this might relate to that.
- 27:51So if Atrium's out of network, will WakeMed become out of network or do you negotiate separately?
- 27:58They are still not one company yet, so we're treating them as two separate entities.
- 28:03You know, there are some WakeMed providers, some of their primary care folks
- 28:06are preferred now. They're going to be preferred next year because of their
- 28:09different partnerships they have. A couple of their specialists are preferred.
- 28:12The rest of it is non-preferred. But we are not allowed to treat them as one
- 28:17entity until they are legally becoming one entity. So WakeMed is not going out of network next year.
- 28:23We are trying to figure out different
- 28:24things we can do with them from a continuity of care perspective.
- 28:28So WakeMed is not going to be going out of network in 2020 unless they choose to.
- 28:33Or, I mean, once this merger, however long it takes, it would take a while,
- 28:37I guess, for it to become final, final.
- 28:39At that point, if Atrium's on a network, WakeMed might be on a network.
- 28:45And you bring up a couple interesting things. A judge ruled that Atrium is allowed
- 28:52to do this kind of via loophole with their Aetna contract.
- 28:57Blue Cross does not have that loophole in their contract for 2028.
- 29:01So this is a one-year thing.
- 29:04We are going to have to figure out and work with them for something for 2028
- 29:09that is going to look – our goal is for it to look like what we thought we had agreed to with them.
- 29:14But this is not going to be able to be a multi-year thing. They're not going
- 29:17to be able to provide this benefit to members in 2027. That would be a breach
- 29:21of their Blue Cross contract in 2028.
- 29:24So we have to figure something out for the long term with them.
- 29:28You know, we have proposed different things in different structures.
- 29:31They've proposed different things in different structures.
- 29:34I would just tell you that I can't imagine the trust getting lower between either
- 29:37party. I'm not even clear what that would look like.
- 29:40But my job is not my feelings. My job is to get the right thing done for teachers
- 29:45and state employees. So we would hope they would honor what they put in place for 2027 and beyond.
- 29:50And if they won't we are going to have to figure out something for 2028 because
- 29:54blue cross is not going to let them do this scheme aetna doesn't think this
- 29:57scheme is the right thing to do either to be perfectly clear they've blindsided
- 30:00aetna as well and aetna has been a tremendous partner through this kind of step in the process,
- 30:05but this is a one-year max thing where they're going to be allowed to do this
- 30:08from an out-of-network perspective so we have to figure out a long-term answer and.
- 30:15The long-term answer is not for them to be in the preferred year in 2028.
- 30:19They've already undercut our preferred partners and undermined those relationships.
- 30:23Those are the relationships we're going to continue to invest in.
- 30:26But we need to figure something out for as many atrium providers as we can so
- 30:31they can continue to see people. And if it costs more, it might cost our members more.
- 30:36But this is a one-year out-of-network situation.
- 30:39And I'm just so sorry to all our members because this, y'all are put in the
- 30:42middle of something that is not your doing, not your fault.
- 30:45And it's not your doctor's fault at Atrium either. You know,
- 30:47your PCP isn't scheming in the back room of, and making websites about things.
- 30:52They're trying to be a good doctor and they have good doctors there and I get
- 30:55it. I'd be frustrated if I was them. I'd be frustrated if I was,
- 30:58I'm frustrated. But this, this is something we are going to have to come to
- 31:01resolution to for 2028. I am hopeful they're going to honor their commitment in 2027.
- 31:06At the same time, I still want our members to use those preferred providers
- 31:09because they're going to be our long-term partners, and we want to hug that.
- 31:11But I don't fault a member for wanting to save money, particularly when it saves
- 31:15the state health plan money as well. I get it.
- 31:16Well, some people say, well, I've been getting my oncology care at Atrium,
- 31:19so I get that. Well, you know, for those folks with the oncology care,
- 31:23part of our agreement with Atrium was you can keep those patients at a little
- 31:29bit richer benefit today from specialty care.
- 31:31They would give us a discount. That was part of the agreement is those sick
- 31:34folks on transplant lists, going through cancer, kids in the NICU.
- 31:39That was part of that September agreement, was you can keep treating those folks
- 31:42at the benefit that they have today, just give us a little bit of a discount to do that.
- 31:47So that was the agreement. We agree that those folks shouldn't have to change,
- 31:50and they should be able to save a little bit of money too.
- 31:53And that was the agreement we had for those folks.
- 31:56My intent is to honor that agreement, but if they're just going to charge members
- 32:00so much less, those folks should take that deal.
- 32:03So we had an agreement with them for those really sick folks to cover it at
- 32:06the benefit members have in 2026 with a reduced specialty copay,
- 32:12with a reduced allowed a month that's going to the state health points. We had that agreement.
- 32:16I hope they honor that agreement. I think there needs to be some sort of debate,
- 32:21some sort of town hall in Charlotte.
- 32:24And you and Gene Woods can't get up there and...
- 32:27Debate it out in front of people. He is much more charismatic than I am.
- 32:31Maybe I'll say Brad. But yes, I'd be happy to. Gene Woods is very good at his job.
- 32:35But his job is not my job. His ethics are not my ethics as a company.
- 32:38And I'm not going to say anything bad about anyone.
- 32:40We want to work with these people. We want to have a relationship.
- 32:45But the facts remains, we just see the world differently from an ethics point
- 32:48of view. I don't believe the treasurer doesn't believe in purchasing hospitals via consent agenda.
- 32:54Doesn't believe in saying you're going to fund all these things,
- 32:56but it's only some part of it.
- 32:57When we make a partnership with someone, that is the partnership.
- 33:00We don't sign our names to things we don't believe in.
- 33:03And they just see the world differently. And I don't want to get in an arguing
- 33:07match with folks. We have the facts on our side, and we're going to look out
- 33:10for our members and do the right things for our members. And that's going to be the focus.
- 33:15And I hope they do the right thing and honor what the commitment they've made.
- 33:18Because the judge said they can do it. We want them to honor that commitment.
- 33:22But I also want people to know you have preferred providers that want to work with you.
- 33:27That sprinted towards giving you a better deal, not just for 27,
- 33:32but for 28, 29, and 30. And we're going to continue to grow that preferred network
- 33:35because y'all are paying too much for healthcare.
- 33:38Yeah. And we got to do a better job of making them pay less for healthcare.
- 33:42Well, if there's any fig developments coming in the next little bit,
- 33:47we'll try to see if we can either get you back or have you let us know what
- 33:52we can tell folks on this podcast. And try to tell us like Tuesday so we don't record all of it.
- 33:57Yeah, you never know what happens. Oh, I know. Loretta tells me the best time
- 34:01to drop news is on a Friday, so. Oh, yeah.
- 34:04Bad news, particularly. Well, thanks for coming by, and listeners,
- 34:07stay on for the rest of the podcast, which is, I think. It's all over the map
- 34:13today. Lots of great things, especially our interview with Nathan Foster.
- 34:16From the North Carolina Justice Center. About the WakeMed atrium merger.
- 34:26Hello, everyone. Welcome to another edition of the Scenic View podcast.
- 34:29I'm Jonathan Owens, along with Artis Watkins and Samantha Klein.
- 34:33We've got a little bit of everything this week. We got some things for retirees,
- 34:37a little update on the atrium state health plan crisis, if you will,
- 34:43the atrium-wake-med merger, maybe some other things. So stick around.
- 34:58Okay, so we are recording on Wednesday, but this will be posted on Friday,
- 35:04and by that time, early voting will have begun, because it starts tomorrow, right, on Thursday?
- 35:10Yes, when this is aired, we'll have one day in the can of early voting.
- 35:15That's kind of a new thing, it seems like. In the last few elections,
- 35:19people have been watching the early vote returns.
- 35:22It seems like every day you get a new update. And remember two years ago,
- 35:27they kind of flipped because Republicans used to vote more on election day than
- 35:32they did during early voting. And it was kind of this.
- 35:36Slip. Yeah. Where there was a lot of early voting among registered Republicans.
- 35:41So it's interesting. Who knows?
- 35:43It's just so much more convenient. It really is.
- 35:46I don't understand the whole partisan divide over early voting.
- 35:50I think we should have a whole weekend where you can just go vote,
- 35:54you know, or make it a holiday. Well, yeah, make it a holiday from work for
- 35:57everybody. But you can't do that, especially with our folks.
- 36:00They've got to staff those prisons. They've got to. That's true, yeah.
- 36:03And by the way, speaking of prisons, this week is a very serious week. Yeah. Somber week.
- 36:08It's the ninth anniversary of the murders at Pasquotank Correctional,
- 36:13where four correctional personnel lost their life in a riot.
- 36:17Yeah, that was a terrible time.
- 36:19That was a devastating time. And that was six months after Megan Callahan lost
- 36:23her life at the hands of an inmate at Bertique Correctional.
- 36:27So those correctional facilities are very physically close to each other geographically,
- 36:34and to lose five lives in that small area of the state in six months was a very brutal time.
- 36:42Those employees were Justin Smith. He was 35. He was a correctional officer.
- 36:47Veronica Darden, correctional enterprise manager. She was 50.
- 36:52Wendy Shannon, 49, a correctional officer. And Jeffrey Howe,
- 36:56a maintenance mechanic at the prison.
- 36:59I'll never forget that. See, that's some of those things where people don't
- 37:03think about the fact that it's not just the correctional officers who are put
- 37:07in danger there. Anybody in the walls.
- 37:10And they're still facing the same dangers, right? And the tremendous irony of
- 37:15that is that a couple of them, my memory is, they had come back.
- 37:20They were veterans, military veterans. I know at least one of them had gone
- 37:26into combat as a military veteran, came back, okay, and then lost their life
- 37:31in a North Carolina prison.
- 37:32So that kind of kick-started a lot of reforms with regard to the prison system
- 37:37that had been really important.
- 37:39Yeah. And, but we're by no means did we make the kind of progress in nine years
- 37:45that we should as a state.
- 37:46If anything, it's worse because there's still less. In some ways, yes.
- 37:50The vacancy crisis for certain got worse. Yeah.
- 37:53It's moving in the right direction now a little bit, but, you know, we got to get it there.
- 37:57Yeah. So I won't name their names, but it's looking at the entry here about the event.
- 38:03And three of the four people who were convicted of the murders,
- 38:08three of them were sentenced to death, and one is four consecutive life sentences without parole.
- 38:13Yeah. So to all our folks working within the walls of prisons,
- 38:17you know, we're always thinking about you. But this week, you know,
- 38:20we're especially thinking about y'all.
- 38:22Stay safe. Hard, hard segue here for me.
- 38:26But looking back at last week's episode, tomorrow, Thursday,
- 38:31October 15th is also the start of the state fair. Woo!
- 38:35Yeah, a happy thing. Yeah. So we have, I really enjoyed talking to the Commissioner
- 38:41Troxler last week. Oh, he's the best.
- 38:44We got to get him in studio or we need to go out and interview him.
- 38:47I think it'd be more interesting to see the ag department.
- 38:51Him and his environment at the fair, he's quite, quite something out there.
- 38:56What if we just sent me out to the state fair one day with a microphone and
- 39:02a recording device and I'll just follow him around?
- 39:06I don't know about following him, but I had actually thought of doing that with
- 39:09one of the employees who's worked there a long time.
- 39:12And I thought about mentioning it to you, but I didn't know how you would feel
- 39:15about it. It's the state fair. I know. Maybe we should do that.
- 39:19I have a contact there who's worked in the fair for more than 30 years.
- 39:23It's the happiest thing that happens in state government all year.
- 39:27So maybe that'll come up in the next few weeks. We'll have a video about that.
- 39:31That'd be awesome. Are you all planning to go to the fair this year?
- 39:35I want to, but I just need to find time in my calendar slash figure out my transportation there.
- 39:42Because you talk about a bear. Traffic is insane to get to the fair.
- 39:46Not only that, but it's also insane to park or paying to park.
- 39:51Even if you just want to park close, like some people would rent out parking lots and stuff.
- 39:56They charge outrageous prices to park there because they know it's there for convenience.
- 40:00Yeah, my daughter had her birthday was Sunday and we had planned to do something
- 40:05on Sunday, but then we had the huge range, right? So we had to do something indoors.
- 40:10But my suggestion to her was like, let's just postpone it to next week and go to the fair.
- 40:16She wasn't buying it because she already had plans with her friends that she
- 40:19wanted. She wanted to see her friends more than. And her boyfriend.
- 40:22Yeah, yeah. I'll talk about that.
- 40:25Meanwhile, my birthday was like four weeks ago, and I still haven't gotten to
- 40:29celebrate with my parents. Oh, so maybe you can go to the fair with them.
- 40:33But then Sunday, we wound up going to Fayetteville to an escape room,
- 40:37and we drove through a part of the town that had been hit by a tornado. That's the day, right?
- 40:43So, yeah, that was not fun. That was your neck of the woods there, Samith.
- 40:49How did your parents fare? Did they have any? My parents are good.
- 40:52They definitely got the warning. But apparently my dad's sitting out there on
- 40:55the porch watching the storms and stuff as they blow by.
- 40:59Yeah. Because I also got a warning in my neighborhood, my area near Durham,
- 41:04Briar Creek. It was hard to not get a warning in North Carolina on Sunday.
- 41:07Yeah. It was crazy. It was bad. I hid myself in my bathroom for about an hour.
- 41:12Because, I mean. Tis the season. Yeah. As someone who grew up in Tennessee where
- 41:16there was a lot more tornadoes, I remember a lot more tornado drills and stuff when I lived there.
- 41:22Watch, not super concerned on a tornado watch. Warning means it's been spotted.
- 41:28You need to take cover. Yeah, that's a little space out there. Yeah.
- 41:32So here at Scenic, it has been just a really busy week, I guess,
- 41:35everything. And here at Scenic, we've even been busy. We had a press conference
- 41:39today. This is, we don't really do a lot of press conferences,
- 41:43but we, you know, once or twice a year maybe.
- 41:45But this was a we had all of our friends come over from the other groups associated
- 41:50with the Atrium Wake Med merger fight.
- 41:53And we had a press conference calling on Attorney General Jeff Jackson to hold
- 41:58some public hearings on the proposal and to, you know, hear our side of the
- 42:03issue. And I thought it went really well.
- 42:05We have Nathan Foster from the
- 42:07NC Justice Center was kind enough to stick around for a brief interview.
- 42:12So we'll have that at the end of this episode. So we'll get more into that topic then.
- 42:17We did say we had a retiree issue to talk about.
- 42:21I thought you would find it fascinating about AI. I like that your mind directly
- 42:27went to me about all things.
- 42:29Yeah, but I would never have thought
- 42:31AI could help people know what their retirement contracts look like.
- 42:34So our old friend Ted Seidel, who helped us a lot on the pension forensic accounting,
- 42:40audit that we did a few years ago, he's now gone on to bigger and better things.
- 42:45I think he's like a celebrity now, right? Oh, he's a big deal here.
- 42:49But he has an article today about how people are using AI to expose state pension secrets.
- 42:56So that's something you want me to get into, right? You want me to start digging
- 43:00in with Claude? Sure. I always would love to know what's in every contract that affects our members.
- 43:06But I think that that's a fascinating, again, never would have expected AI would
- 43:11be part of any kind of transparency we might get in the pension world.
- 43:16Not just in North Carolina, but all around the nation. This is such a problem.
- 43:19Public pensions are kept under total secrecy in terms of their investments.
- 43:25It would be fascinating to learn what all these public pensions are invested
- 43:29in. Oh, I'm about to dig into this.
- 43:30Another plug for Pension Fight Club. Go watch that documentary.
- 43:34That's right. Go watch Pension Fight Club.
- 43:36Oh, I might contact Ted and get into this. Yeah, see? See what we can dig up. See?
- 43:42You guys can't see it, but John is currently looking into it. The wheels are turning.
- 43:47Oh, he's got a little how-to.
- 43:50See, our retirees have wanted that for a long time. They want transparency because,
- 43:56when you're told repeatedly as a retiree, you can't have a COLA because we don't
- 44:00have enough gains in the system. Our investments aren't making enough gains.
- 44:04One of your first questions is going to be, why not? Yeah, why not?
- 44:08I mean, because they'll look at they've got a mutual fund somewhere.
- 44:11They can tell, why am I doing well, but the retirement system's not like this doesn't make sense.
- 44:17And part of that can be fees.
- 44:20And sometimes there's layers of fees that we're paying. But, you know, we can't know.
- 44:26So retirees, that's their money. Six percent of their check every month went
- 44:29into that for their whole life.
- 44:31They want to know. Yeah. Well, not their whole life. Not since birth.
- 44:35Their whole working life. Their whole career. Somebody would have pointed that
- 44:39out. So I want to make sure we correct it.
- 44:41Okay. Well, let's get to the interview with, well, it's not really an interview.
- 44:45It's just kind of a hang. We'll call it like a hang.
- 44:47Yeah. So Nathan stopped by after the press conference and he had a few minutes.
- 44:52And we hashed it out about the whole issue. So if you're interested,
- 44:57stick around. I think it's a really good discussion. He knows a whole lot about
- 45:01healthcare in general. So glad we had him on and you have a great week.
- 45:11Hello, everyone. We're here today with Nathan Foster from the NC Justice Center,
- 45:16a recurring guest of the podcast.
- 45:18Welcome, Nathan. We're coming into the studio right after our press conference
- 45:22on the Atrium-Wake-Med merger situation and the letter.
- 45:27We've partnered with other groups to send to Attorney General Jeff Jackson pertaining to the merger.
- 45:34And we just want to discuss a little bit about this whole situation.
- 45:38You can watch the whole press conference on our Facebook page.
- 45:42And I thought it was a pretty good press conference. What did you think,
- 45:44Nathan? Yeah, absolutely.
- 45:46I mean, it was great to be able to speak and explain why the attorney general
- 45:52really needs to play a role here. Yeah.
- 45:55So let's explain a little bit about why we sent the letter and, you know, go from there.
- 46:00The Wake County commissioners voted a few weeks ago to move ahead with the merger.
- 46:06But now it goes to, one of the places it goes to is the attorney general's desk, right?
- 46:12Correct, yeah. For further approval. Is it approval or is it?
- 46:17Well, that's a question that one of the members of the media asked.
- 46:20Are you asking him to say, you know, to block this? Are you asking him to help
- 46:25change this and make it a better deal? What do you want?
- 46:29And I think anything's on the table, but the most likely thing the groups would
- 46:35like to see is, This deal that was done without proper procedure,
- 46:40very little public input at all.
- 46:42We'd like to see them set this deal aside, start over.
- 46:46Actually do some proper vetting of this whole situation, and most importantly,
- 46:51have some sort of community meetings, town halls, whatever you want to call them, where.
- 46:58Attorney General Jackson's team can hear from the public.
- 47:02Yeah, I mean, I think that one thing that is relevant to the Attorney General
- 47:07is it seems like there was no public bidding process.
- 47:10This deal was made behind closed doors. They didn't consider other offers.
- 47:14They didn't consider other hospitals to have this kind of relationship with.
- 47:19And whether that raises any concerns about whether it was done in a valid way,
- 47:24I think is a really important question.
- 47:25And, you know, we just don't have access to that information because they've
- 47:29been so secretive about this process. And one thing that the attorney general
- 47:31can do is really shine a light on this secretive process.
- 47:36The other thing, obviously, is prices. This is going to merge and create an
- 47:41even bigger system that will be the largest system in Charlotte,
- 47:45the largest system in Raleigh, the largest system in Winston-Salem,
- 47:49getting to the point where they can charge what they want and nobody can tell them anything.
- 47:53And that's a monopoly concern. That's an anti-competitive concern.
- 47:56And the attorney general also has a responsibility to protect North Carolina
- 48:01consumers and North Carolina patients from our prices going up.
- 48:05And so that's another aspect that they really should be intervening in.
- 48:08Yeah. So, I mean, they already almost have that now with the triad area and
- 48:14the Charlotte area. I guess it's the last jewel in their glove,
- 48:19their infinity stone glove, right?
- 48:23Yeah, at some point, you would think that an elected official would,
- 48:27you know, stand up for their constituents and, you know, say this is at least
- 48:32needs some more scrutiny, right?
- 48:34Well, we were thrilled, speaking of someone standing up for their constituents,
- 48:38we were thrilled that Commissioner Tara Waters was in attendance today just
- 48:43to see what was going on because she and Commissioner Vicki Adamson.
- 48:47So strongly stood up for folks.
- 48:50I mean, it can't be overstated how hard it is to stand up to these huge corporations.
- 48:57Even if from the outside, it seems like that kind of decision is obvious to a lot of people.
- 49:01I'm sure that when you're in the room and over and over again having these closed-door
- 49:05meetings with these CEOs and these lawyers, it's really hard to say no to them.
- 49:08And so I give Commissioner Waters and Commissioner Adamson a lot of credit for that. Yeah.
- 49:14There's also a Federal Trade Commission side of this issue, right?
- 49:18So what's going on with that?
- 49:21Yeah, the Federal Trade Commission has a responsibility to protect Americans
- 49:26from corporations making monopolies, raising our prices.
- 49:30And I think that it's clear that that is what is happening in this case.
- 49:35You had the CEOs of the hospital saying they want prices to go up because they
- 49:40will have more leverage.
- 49:41The challenge with the FTC is this is something that's called a cross-market
- 49:45hospital merger because Atrium and Wakemet are technically in different markets.
- 49:49And historically, there's been less challenges to cross-market mergers.
- 49:54And it's been a huge problem because the cross-market mergers still raise prices
- 49:58and they've been happening and prices have been going up and nobody's been stopping it.
- 50:01And so the question is whether the FTC decides this is a cross-market merger
- 50:06that we're going to challenge. And I think certainly there's a strong case to
- 50:10be made, but I am not an FTC lawyer, so I don't know exactly what they're thinking right now.
- 50:15So has this moved beyond the commissioners at this point? I mean, are they?
- 50:20Well, on the one hand, the commissioners did vote without all of the material
- 50:24terms of a contract before them. They voted for the contract.
- 50:29That is done. Could they technically? I guess somebody who voted with the prevailing
- 50:35side could try to recall the motion. I don't know.
- 50:38I think that where the commissioners stand on this now is there's going to be
- 50:43work that is after the fact.
- 50:45And it seems like they almost tried to rush some of that. And one of those is
- 50:48to fill the three slots for the Wake Med board.
- 50:52They flashed something up online yesterday so people could apply to be considered for that board.
- 50:59And then a little while later it was removed.
- 51:03A lot of us did wonder, were they trying to rush that through before the election?
- 51:07Because there is one incumbent, Sophia Jackson, who voted to allow this takeover
- 51:14of Atrium, of WakeMed, who does have an opponent, John Adcock.
- 51:19And in fact, we're saying our CNIC's political action committee,
- 51:24we call it MPAC, has endorsed John Adcock in that race against Sophia Jackson here in Wake County.
- 51:31The AFL-CIO had endorsed Sophia Jackson, the Triangle Labor Council,
- 51:35had endorsed Sophia Jackson and rescinded that endorsement. They did not endorse
- 51:40anyone else, to be clear, but they rescinded her endorsement.
- 51:44So that's the only reason some of us, I think, we were all kind of wondering
- 51:47yesterday, Nathan, what was the reason for the almost push for that?
- 51:53I don't know why that happened. But, yeah, as you said, the commissioners voted
- 51:58away most of their power. There's still some role for the commissioners in appointing
- 52:03some of the board members.
- 52:06And that matters because the board gets to be in the room where decisions are made.
- 52:11And so at least there can be some transparency of how these decisions are being
- 52:14made for the community if the right board members are there,
- 52:18even if nobody can actually stop A-Trim from doing what it wants to do.
- 52:22You can at least see what's happening as it's happening.
- 52:25Yeah, the Wake County Commission now can appoint three of the board members
- 52:30as this transition is taking place, and they seem to have tried to rush it through
- 52:35and do it, I guess, before the election happens and before the new board comes in.
- 52:39But then they took the post down. I'm very confused, and I'm not sure exactly
- 52:44what's going on with that.
- 52:46Speaking of the impact endorsements, we also endorsed three other commission candidates. Right.
- 52:52In one of the sets of races for
- 52:56the Wake County Commission, there are four candidates and you choose two.
- 53:00And the two that Impact has endorsed are Christine Kushner, who used to be Wake County School Board.
- 53:06And Mona Singh, who has just been awesome about the fact that we need more transparency
- 53:12and we need to do the right thing by patients and by public workers.
- 53:16And then we also endorsed Vicki Adamson, who we mentioned earlier,
- 53:19who does not have an opponent, but definitely deserved an endorsement because
- 53:25of the way she fought for all of her constituents, including,
- 53:28city, county and state employees and retirees.
- 53:31And just going back to one point that you mentioned in the press conference,
- 53:35Nathan, and I think it raised a lot of eyebrows from what I could tell.
- 53:40We actually had a lot of reporters show up, so that was good.
- 53:43You said that they asked if we had spoken to the attorney general, and you said.
- 53:52That the commission hasn't even delivered the documents to the attorney general. Is that correct?
- 53:57Yeah, so the hospitals, once they dot all the I's and cross the T's,
- 54:02they have to tell the attorney general, hey, we're doing this deal,
- 54:06we're transferring control.
- 54:08And then that starts the attorney general's process. And I can say that we asked
- 54:13the attorney general earlier this week and they hadn't received those documents
- 54:16yet. So the review process hasn't started yet. What do you think the holdup is?
- 54:21Would it have anything to do with the election, you think?
- 54:24I'm not sure if it has to do with the election, but I mean, it's clear that,
- 54:27this was rushed through so quickly and there were so many last minute changes.
- 54:30I would not be surprised if they haven't dotted all the I's and crossed all the T's.
- 54:34And that could be on some really important stuff like whether these price controls
- 54:39mean anything or not, among other things. And I think it just goes to show how
- 54:42much the commissioners rushed the deal, that they sort of signed away their power. Yeah.
- 54:48Took themselves out of the picture in terms of having any leverage before the
- 54:51deal has even really been been finalized in a complete way. Yeah.
- 54:55And the pure public relations skeptic in me is saying maybe they're thinking
- 54:59it'll die down at some point and they can.
- 55:02Oh, it's not. It's not going to die down. Obviously, this is going to keep happening.
- 55:05Obviously, we'll keep holding press conferences to keep it in the forefront. Right.
- 55:11So where do we go from here? I guess I guess along those same lines where.
- 55:16Yeah, well, I mean, this coalition of groups who represent workers in the community,
- 55:20and the whole state in terms of state employees and retirees,
- 55:25we're going to stay together and continue exploring every avenue.
- 55:30Because I do think Nathan's right, and John, your skeptical PR side is right,
- 55:35that whenever something big happens, there is the hope that it'll just die down
- 55:40and everybody will just kind of live with it.
- 55:42It is imperative if we're ever going to stop being the number one most expensive
- 55:46place for health care in the country, North Carolinians are going to have to
- 55:50make sure that we don't let these things go.
- 55:53And then we keep them in front of policymakers at every level of government.
- 55:57So we'll also be coming into the General Assembly session in January,
- 56:02pushing hard for the kind of reform Senator Bergen already tried to get through
- 56:06last year regarding the way hospitals can behave.
- 56:11Well, before we go, I just want to give a quick shout out to all the groups
- 56:14who signed on to the letter. And you can read the letter on our website.
- 56:17We're going to post it for everyone.
- 56:19To Attorney General Jeff Jackson, the Patients Union, who they were here today,
- 56:26the State Employees Association of North Carolina. Shout out to y'all.
- 56:32NC Justice Center.
- 56:35That's Nathan's folks. The Raleigh Apex NAACP, the Men of Southeast Raleigh,
- 56:42the Triangle Center Labor Council, the NC Poor People's Campaign,
- 56:46and the Communication Workers of America of North Carolina.
- 56:49I think it's Triangle Central Labor Council. Triangle Central Labor Council. Okay.
- 56:54But, yeah, we made some new friends. Look at us. We got some friends now, Artis. Yeah.
- 56:59We're already talking, Nathan and Artis, we're already talking about some future,
- 57:04projects that we can get together. Absolutely.
- 57:07Yeah. Because the one thing that the press keeps asking, what,
- 57:11you know, what is it about these costs that has us so interested in this?
- 57:16And so just as a reminder to state employees or retirees who are listening,
- 57:20the General Assembly spent $4 billion, $4 billion with a B, over the last two
- 57:26years on your health plan.
- 57:28That's not because you're sicker than other people and you overuse your health care.
- 57:35It's because you're overcharged for your health care. Thomas Friedman from the
- 57:39plan confirmed that on this podcast. You are overcharged for your care.
- 57:44Now, you might think, why should I care? State health plan's paying it.
- 57:48If those state health plan bills are so high, the General Assembly has to put
- 57:52$4 billion over two years in to pay them towards your health care.
- 57:56There will come a time they're not willing to do that they don't have it and
- 58:00also they're not paying you any raises or retiree colas in the meantime,
- 58:06and they're probably cutting some state services yeah because the way they look at it,
- 58:13is this health plan is costing us so much money but that's part of what we're
- 58:17paying the workers so if if you think we're being a little too hard on the hospitals.
- 58:23Just understand that money's coming out of your pocket.
- 58:27Yeah. One way or another, if you're overcharged. So it's got to stop or you'll
- 58:32never get anything again.
- 58:35Yeah. Yeah. These costs have got to come down. Have to. Yeah.
- 58:39Well, thank you so much for coming in, Nathan. And we look forward to partnering
- 58:42in the future. Absolutely. Thank you all. Thank you.