NC State Health Plan Sues Atrium Health Over Affordability Program
The North Carolina State Health Plan and state treasurer Brad Briner sued Atrium Health on Oct. 9 in Wake County Superior Court, alleging the system's newly announced Affordability Protection Program illegally circumvents the treasurer's statutory authority over plan benefits. The dispute stems from a tiered Preferred Provider Program the treasurer is launching in 2027 to address projected deficits of $500 million in 2026 and $1 billion in 2027; Novant Health, UNC Health and Iredell Health System joined the preferred tier while most Atrium locations were placed nonpreferred. Atrium's Oct. 6 program offers lower copays to plan members starting in 2027, which the lawsuit calls bad-faith timing meant to undermine the plan ahead of open enrollment and falsely imply state endorsement. Plaintiffs seek a temporary restraining order and a ruling voiding the program; Atrium says it repeatedly offered to match preferred-tier discounts and denies any intent to harm the plan's finances.