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North Carolina Should Centralize Management of State Employee Supplemental Insurance Benefits (August 2015)

 

Summary

In addition to offering standard benefits such as health insurance, North Carolina offers state employees the option of purchasing supplemental insurance plans through two separate mechanisms: the NCFlex program, which is administered through the Office of State Human Resources and uniformly available to all eligible state employees, and employee insurance committees, which are housed within individual agencies and universities. The Program Evaluation Division found employee insurance committees are ineffective and have failed to manage the selection of supplemental insurance products. The separation of these committees and NCFlex results in overlapping and duplicative supplemental insurance offerings and makes product comparison and selection challenging for state employees. In addition, weak oversight and management of supplemental insurance elections and payroll deductions by agencies and universities presents risks to employees and the State. The General Assembly should centralize supplemental insurance benefits by creating a single committee that would oversee all supplemental insurance offerings, including the NCFlex program.

Final Report

Executive Summary

Recommendations

Report Update and Additional Responses

Relevant Legislation:

  • House Bill 966/Senate Bill 782 (2015–16): An act to clarify selection and strengthen the functioning of employee insurance committees, as recommended by the Joint Legislative Program Evaluation Oversight Committee. This legislation was not enacted

Press Coverage:

Related Reports:

PED Contact:

Program Evaluation Division, North Carolina General Assembly
Legislative Office Building, Suite 100
300 North Salisbury Street , Raleigh, NC 27603-5925
919-301-1404