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State Health Plan sues Atrium over new cost-sharing program

North Carolina Treasurer Brad Briner speaks at a Wake Technical Community College press conference above the NC Political News footer.
Wake Technical Community College photo of Treasurer Brad Briner speaking at an April 4, 2025 press conference, released under CC0 1.0 via Flickr and Wikimedia Commons. Proportional crop from the 4468x2979 original.

RALEIGH – The North Carolina State Health Plan and Treasurer Brad Briner have sued Atrium Health, asking a Wake County judge to block a new cost-sharing program before 2027 open enrollment.

The verified complaint, filed Oct. 9 by the plan, the Office of the State Treasurer and Briner in his official capacity, seeks a temporary restraining order and other relief. The filing says the plan covers nearly 750,000 state employees, retirees and dependents.

Atrium announced its Affordability Protection Program on Oct. 6. Atrium says it would reduce copays and other out-of-pocket costs for plan members who use Atrium doctors and facilities, in some cases below what members would pay at providers in the plan’s preferred tier.

The dispute centers on a three-tier provider system scheduled to take effect in 2027. UNC Health and Novant Health are preferred providers, while many Atrium locations are classified as non-preferred. The state says the structure is intended to steer members toward providers that agreed to lower rates and help stabilize the plan’s finances.

The complaint alleges that Atrium would lower members’ share of a bill without reducing the prices it charges the State Health Plan. It contends that the program interferes with Briner’s statutory authority to set copays, deductibles and coinsurance and could undermine contracts with preferred providers. Those claims are allegations, and no court ruling is described in the filing.

Atrium told NC Health News and WRAL that it strongly disagrees with the state’s characterization. The health system said its focus is making care more affordable for public servants and their families and that it is reviewing the legal filing.

The State Health Plan extended open enrollment through Nov. 6, saying members needed more time to evaluate their 2027 choices. The lawsuit adds a new legal front to a dispute over hospital prices, patient costs and who controls benefits for one of North Carolina’s largest public programs.

Sources

Photo Credit: Wake Technical Community College photo of Treasurer Brad Briner speaking at an April 4, 2025 press conference, released under CC0 1.0 via Flickr and Wikimedia Commons. Proportional crop from the 4468×2979 original.

Editor’s Note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.

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