April Reporter 2019 by SEANC

April 2019 • Vol. 37, Issue 3

THE

REPORTER

State Employees Association of North Carolina

N.C. must put patients, taxpayers ahead of hospital executives How much are you paying for health care? You may say too much, you may even cite the cost of a recent procedure you’ve had, but do you know what the actual cost of care is? More importantly, do you know if it’s fair? Many North Carolina families are one major medical bill away from bankruptcy, yet we don’t know what we’re paying for. Hospital executives keep health care costs secret because they know when we’re sick and at our most vulnerable, they can charge whatever they want. What choice do we have? We deserve to know if the bill that stands to jeopardize our family’s future is inflated. We deserve to know if we’re being overcharged to pad high-paid hospital executives’ profits. We deserve quality, affordable, transparent care. Reform starts by changing the way we pay for care in the State Health Plan. We can bring transparency to a system that has been shrouded in secrecy, stabilize costs that have spiraled out of control, and hold providers accountable to the taxpayers and patients who pay the bills. It’s called the Clear Pricing Project, and it will finally give patients back the power hospital executives took away. The Clear Pricing Project will save taxpayers more than $258 million annually, reduce out-of-pocket costs for state employees, teachers and retirees, and help patients understand exactly what they’re paying for. Clear pricing works by setting payments for procedures relative to a widely-used benchmark and adding a margin to ensure that providers can make a profit. In this case, the State Health Plan will reimburse providers at Medicare

rates plus a 77 percent markup. It’s not a new or radical approach. SEANC proposed this payment methodology nearly a decade ago to help save money for our members and other taxpayers. Clear pricing is gaining support because it has been analyzed, tested, and proven effective. North Carolina began using it in 2010. Hospitals provide care for workers’ compensation claims at Medicare rates plus a 40 percent margin. In the decade since, hospital executives haven’t raised profitability concerns. Many self-insured plans across the country, both public and private, have turned to this method. For these reasons and more, the SHP Board of Trustees voted unanimously to endorse its implementation. The Clear Pricing Project will help lower costs, keep them stable, and make them easy to understand. So why are hospitals executives opposed to clear pricing? For far too long, hospitals have billed their procedures at arbitrary prices with arbitrary discounts. The practice leaves consumers guessing about the true value of their care while hospitals dodge accountability and rake in profits. Atrium Health announced that CEO Gene Woods received $6.1 million in compensation in 2018. In 2017, Atrium’s top 10 executives took home $21 million. Gene Washington, Chancellor of Health Affairs at Duke Health, pulled in $2.2 million in 2018. Vidant Medical Group CEO Mike Waldrum made $1.2 million last year. One aspect of our healthcare system is perfectly clear: Hospital executives profit from confusion. These executives should have the

burden of proof — not the benefit of the doubt — in our healthcare cost debate. They are the ones who need to answer difficult questions about why their costs are out of control. Without transparency, hospital executives’ claims of financial hardship are just that — claims from bureaucrats who have everything to lose when patients — and taxpayers — save money. Clear Pricing Project Update State Treasurer Dale Folwell's Clear Pricing Project will save taxpayers more than $258 million and plan members almost $57 million in out-of-pocket costs. Hospital lobbyists convinced several legislators to file House Bill 184 in early March, which would slow down the project by sending it to a “study committee.” It also prohibits referencebased pricing until 2022, meaning plan members will continue to overpay for services and taxpayers will be charged nearly $1 million a day while they study the Plan. The bill has passed one of three committees in the House as of press time. State Treasurer Dale Folwell added $52 million to the reimbursement plan for rural hospitals, which will now receive 218 percent — more than double — Medicare rates.

J IN FIGHT the

This column by Executive Director Robert Broome originally appeared in the Feb. 18 edition of the Raleigh News & Observer.

Visit SEANC.org/engage to quickly and easily contact your lawmakers and tell them it's time to put working families over corporate interests. Like and follow “Affordable Healthcare for North Carolina” on Facebook and @ahcncnow on Twitter to stay informed.

PUBLIC POLICY Council of State approves lease to move

DMV headquarters to Rocky Mount "They have turned the lives of some 400 employees completely upside down. It is profoundly disappointing." SEANC Executive Director Robert Broome

more about how DMV would assist employees, no details about worker assistance were shared in the meeting. Following the March 5 vote, SEANC Executive Director Robert Broome told the News & Observer that the Council of State had shown “disrespect and disregard” for DMV workers. “They have turned the lives of some 400 employees completely upside down. It is profoundly disappointing.” Even with the vote, the fight is not

over. The General Assembly must agree to fund the lease before the headquarters move can be finalized. Legislation is pending that would require DMV to issue a new request for proposals. SEANC continues to work with legislators to keep the headquarters in Raleigh.

AMANDA WISE

Despite fierce opposition from SEANC members and legislators, the Council of State approved a lease proposal that could result in the Division of Motor Vehicles (DMV) headquarters being moved from Raleigh to Rocky Mount. SEANC members who work at the headquarters gathered at the SEANC office on Feb. 4 to make their opinions known on the issue to several media outlets in attendance. Following the meeting, Gov. Cooper removed the vote from the council’s February meeting agenda. The Council of State passed the measure on March 5 without any discussion or debate. Although Gov. Roy Cooper had previously delayed a vote so the Council could learn

DMV employee Errico Moore discusses the impact of the DMV move during the Feb. 4 forum at the SEANC Office.

N.C. Senate forms committee to tackle prison reform Following the successful launch of SEANC’s prison reform report in January, Senate President Phil Berger has created a special committee aimed at tackling the issue head on. The Senate Select Committee on Prison Safety held its first meeting

in mid-March and is tasked with recommending changes for the General Assembly to consider. Sen. Bob Steinburg (R-Chowan) serves as the committee’s chairman. Steinburg has been a staunch advocate for prison safety and supporter of SEANC’s efforts

THE

REPORTER

State Employees Association of NC 1621 Midtown Place • Raleigh, NC 27609 919-833-6436 • 800-222-2758 • www.seanc.org

to give the employees on the ground a voice in reform. His district includes the two prisons — Bertie and Pasquotank — where five state employees were killed in 2017. Creation of the committee comes on the heels of SEANC’s release of “From the Inside,” a report detailing recommendations collected from hundreds of comments from correctional personnel. Read the report online at seanc.org/prisonreform.

Jonathan Owens, Editor-In-Chief • Beth Dew, Managing Editor • Amanda Wise, Associate Editor

ADVERTISING POLICY SEANC accepts advertising material from companies and persons seeking to communicate with SEANC members. Acceptance of this advertising does not indicate SEANC approval or endorsement of any representation that the message, product or service is as represented by the advertiser. SEANC accepts no responsibility and shall not be liable for any use of or reliance on any such information, product or service. SEANC is a private entity and is under no obligation to carry advertisements of any nature, political or otherwise, that may be viewed as contrary to the interests of the association and its membership. ©Copyright 2019 SEANC. All rights reserved.

THE REPORTER • April 2019

The Reporter, USPS 009-852 (ISSN 1069 2142), is published six times a year in the months of February, April, May, July, September and November for $2.50 per year, per member, by the State Employees Association of North Carolina, Inc., 1621 Midtown Place, Raleigh, NC 27609. Periodicals postage paid at Raleigh and additional offices. POSTMASTER, Send address changes to: THE REPORTER, 1621 Midtown Place, Raleigh, NC 27609

PUBLIC POLICY EMPAC launches Million Dollar Mission Invest in your future and get a chance to win $50!

By EMPAC Chairman Mark Dearmon

The Employees Political Action Committee's (EMPAC) legislative endorsements for the November elections were very successful. Thanks to our generous EMPAC investors, we were able to offer campaign support in 33 legislative races and successfully elected 82 percent of our EMPAC-endorsed candidates in 2018. EMPAC’s strong reputation for true bipartisan endorsements and commitment to our issues led

to EMPAC topping the 2018 list of Longleaf Politics’ “16 endorsements that matter in N.C. politics.” Building upon the momentum from 2018, the State EMPAC Committee unanimously voted in January to launch the Million Dollar Mission, a campaign to raise $1 million dollars for the next election cycle. Just because the election is over does not mean our work is done. With the 2020 election fast approaching, it is now more important than ever to ensure we are in a competitive position to continue lifting up the voices of hardworking

state employees and retirees and make our issues heard at the ballot box. Becoming an EMPAC investor or increasing your monthly investment will enter you into a drawing for a chance to win a $50 Visa gift card. For every 50 members who invest or increase by at least $3 per month, we will add another $50 gift card.

DRAWINGS HELD QUARTERLY Qualifying for the contest is easy: 1. Go to empac.seanc.org 2. Click on "Invest in EMPAC" 3. Complete the simple form.

Cooper proposes budget with small raise, retiree bonus Gov. Roy Cooper proposed a state budget for the 2019-2021 biennium on March 6 that would provide a small raise for state employees and a one-time bonus for retirees. Cooper’s proposal included the following provisions regarding state employees and retirees: »» »» »» »»

A pay raise of 1.5% or $500 (whichever is greater) for all state employees. Five extra days of special annual leave. An additional $500 increase for non-certified school personnel, including teaching assistants, custodians and bus drivers. An additional $500 increase for nearly 37,000 law enforcement officers and institutional employees in the Departments of Public Safety and Health and Human Services. »» A one-time 2% bonus for retirees. »» $12 million for facility upgrades and safety improvements at the state’s prisons. Republican leaders quickly dismissed Cooper’s budget, saying it was “not a serious budget proposal.” Legislators will soon begin crafting their own spending plan, which is expected to look notably different from the governor’s version. SEANC looks forward to working with the General Assembly and the administration to get the best deal for state employees and retirees.

STEPS to FINAL BUDGET

Governor proposes budget.

Senate proposes its own budget.

Senate sends budget to House.

House approves budget or creates its own.

If necessary, House and Senate create a budget in a joint conference comprised of leaders from both chambers. Once approved, the new budget is sent to the Governor.

*Governor

can veto or sign the budget.

*The House and Senate can override the Governor’s veto with a 2/3 majority vote.

THE REPORTER • April 2019

MEMBERS IN ACTION

Be the next great

SUBMITTED BY CARRI DERRICK AND FELICIA CHIAMBIRO

SEANC LEADER Are you the next great SEANC leader? Now’s your chance to prove it.

The Emerging Leaders Council hosted a #HashtagLunchbag event on Feb. 2 at the SEANC Office. During the event, volunteers made and packed 200 lunch bags along with encouraging notes that were distributed to the homeless in Raleigh.

SUBMITTED BY ANN FRANCE

SUBMITTED BY CYNTHIA HART

District 65 members sponsored a Valentine's Day membership event at the ECU Health Science Student Center. Pizza and sweets were served, and prizes were given away. Pictured at far left are Regional Representative Rita Woods, District 63 member Marion Drake and Member Relations Representative Gloria Evans. Pictured immediately left is District 65 Chairwoman Cynthia Hart with one of the eight members recruited that day.

District 42 members volunteered during the Toast of the Triangle fundraiser at McKinnon Center in Raleigh on March 10. The proceeds from the event went to the Tammy Lynn Center for Developmental Disabilities. Pictured are District 42 members Rhosaundra Watson, Cynthia Parker, Shirley Ballard, Diana Barby, Ann France and Tracy Webb. Not pictured are District 42 members Tralene Williams, Layne Roberts, Stephanie Nmashie, Rhonda Wiodward, and Branda Watford.

THE REPORTER • April 2019

SEANC’s Emerging Leaders Council has established a scholarship program to allow one SEANC member the opportunity to participate in Leadership North Carolina (LNC). Each year, Leadership North Carolina selects a class of 50-60 current and emerging leaders from across the state through a competitive application process. Participants attend six two-day sessions between Oct. 2019 and May 2020 in various locations across the state where they learn about the challenges and opportunities facing North Carolina, with a focus on building networks and turning knowledge into action to benefit their communities and the state. Participation in LNC requires a twoyear commitment. Only active SEANC members working full time for the state are eligible to apply. Selection as the Emerging Leaders/LNC scholarship finalist does not constitute automatic admission into LNC. The individual selected will be required to submit an application to LNC and be accepted for admission into the program. Scholarship funds will cover the cost of tuition, meals, travel and lodging. Apply online at seanc.org/leadership-nc-scholarship.

RETIREE FOCUS Retiring soon? KNOW YOUR OPTIONS Navigating the road to retirement can be exciting but confusing. If you are planning to retire soon, you will need to decide what health care option is best for you and your family. To help with this decision, the State Health Plan is holding pre-65/PreRetirement meetings through the end of June at venues all over the state. These sessions target state retirees who will be turning 65 during the next 24 months as well as those who are 66 or older and actively working (and perhaps thinking about retirement).

The Plan sent each member a mailer on the subject recently that included meeting dates and locations. You can also access the list and register online at www.shpnc.org (under Upcoming Events and Newsletter). You can also call the Plan’s office at 919-814-4400. In addition to the onsite meetings, the Plan is also conducting a number of webinars for those who are unable to attend a session in their area. Webinars run through July 2019. The dates and times of the webinars may be found in the mailer as well as at www.shpnc.org.

DID YOU KNOW? If you’re thinking about retiring, you should submit retirement paperwork 120 days before your retirement date to ensure that you’re eligible for most health plan options. If you’re already retired and under 65, your health plan options change when you turn 65. You’ll need to make decisions about your new options. Also, please contact the SEANC Office 30 to 60 days before retirement to let us know you plan to retire. We do not always get updates from the state on employee status. A change can affect your dues deduction and insurance options.

Appeals court reverses decision on retiree health care premiums The N.C. Court of Appeals sided with the state by unanimous decision on March 5 in determining that state retirees are not exempt from paying premiums on their health care. The appeals court reversed a 2017 decision in Gaston County, where the suit was filed on behalf of former N.C. Supreme Court Chief Justice I. Beverly Lake. It covered more than 220,000 people on the plan. If upheld, the suit would have cost taxpayers more than $100 million. “Retired state employees are promised nothing more than equal access to health care benefits on an equal basis with active state employees,” Judge John Tyson wrote in the ruling for himself and Judges Wanda Bryant and Robert Hunter. The decision can be appealed to the State Supreme Court, but because the appellate court’s ruling was unanimous, the Supreme Court is not obligated to hear the case.

RETIREE COUNCIL

SCHOLARSHIP PROGRAM

Applications must be submitted to the district chairperson by

SUBMITTED BY TONIA WARNIC

APRIL 15

Two $500 scholarships in each region, one in the merit category and the other in the financial aid category, will be awarded to members' grandchildren. District 10 members participated in The 4th Branch Lobby Day on March 19. They met with legislators to ask for their support of House Bill 213 (equal tax treatment of government retirees to make state income taxation fair for all local, state, federal and military retirees in North Carolina). Pictured from left to right are District 10 members Marilyn Jean Martin, James Nicholson, Doug Corriher, Steve Foster, Michelle Dunlap, Lashay Brandon, District 10 Chairwoman Tonia Warnic and Kimberly Hutton.

Applications are available at seanc.org/retiree-councilscholarship-program.

THE REPORTER • April 2019

Doug Sutton

Insurance Services Providing quality and affordable insurance to SEANC members for over 40 years. We appreciate doing business with you!

Please call us if we can be of service.

919-836-9993 or Toll Free: 1-800-788-7771 dougsutton@dougsuttonins.com

SECU's One Time Passcode offers more security and convenience!

For details, go to www.ncsecu.org, contact your local branch or call 24/7 Member Services at 1.888.732.8562.

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*Promo valid online only for 20% off through 4/30/19 at 11:59 pm PST. First time buyers only. Offer excludes select New Product Releases, Brand & Product Specials, Square Trade Warranties, Automotive, Vacations, Travel Vouchers, Doorbusters and Flash Sale items. See site for details. “A Better Way to Buy” is a trademark, and “Purchasing Power” is a registered trademark, of Purchasing Power, LLC. Other trademarks or registered trademarks used are the property of their respective owners. © 2019 Purchasing Power, LLC. All rights reserved.

THE REPORTER • April 2019

STATE PERSONNEL CASES: PROTECTING STATE EMPLOYEE RIGHTS Representing State Employees in State employees are good people. But Grievances, Court of Appeals, and even good people make mistakes NC Office of Administrative Hearings mistakes that violate your rights as a career employee, discriminate against you, or cost you a promotion or job. ■

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My practice is restricted to state personnel disciplinary and licensing matters. I have litigated personnel cases in the Office of Administrative Hearings since the 1990s. If you have a grievance, disciplinary appeal, or any state employment matter, call (919) 865-2572 or email me at michael@mbyrnelawnc.com. Learn how I put 20 years of experience and consistent success in state personnel cases to work for you - when your rights are on the line.

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(919) 865-2572 THE DEALABOUT ABOUT THEREAL REAL DEAL THE REAL DEAL ABOUT

Scholarship Deadline is April 15 The deadline for applying for one of SEANC’s scholarships is fast approaching! Applications must be turned in to your district scholarship chairperson postmarked no later than April 15. The scholarships awarded by the SEANC Scholarship Foundation and the individual districts are one of the association’s most valuable member benefits. For more on the criteria, for an application, or to find your district scholarship chairperson, visit seanc.org/scholarship.

THIS DEAL WILL

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Member savings not available at front gate. Purchase through SECU Branch or SEANC Office. Savings based on $84.99 adult Busch Gardens Williamsburg Single-Day Ticket. Park and event schedules are subject to change. Please verify park schedule before visiting. Restrictions apply. ©2019 SeaWorld Parks & Entertainment, Inc. All rights reserved.

THE REPORTER • April 2019

Periodical Postage PAID Raleigh, NC 1621 Midtown Place Raleigh, NC 27609

Theme park season is here! SEANC has once again partnered with the State Employeesâ&#x20AC;&#x2122; Credit Union to offer savings at eleven theme and water parks in North Carolina, South Carolina, Tennessee and Virginia. Tickets can be purchased at any State Employeesâ&#x20AC;&#x2122; Credit Union branch.

Exclusive for SEANC members! Purchase discount tickets for Water Country USA directly from SEANC at seanc.org