FORBES: North Carolina Ranks #1…for Highest Health Costs in the Country
We’ve been writing for months about the ugly health cost trends facing North Carolina employers and families.
For 2024, Forbes ranks North Carolina the worst state in the entire country on health costs:
North Carolina is the most expensive state for healthcare, with the highest average premium for residents with “plus-one” health insurance coverage through an employer ($4,781 annually).
North Carolina has the second highest average premium for residents with family health insurance coverage through an employer ($7,180.33 annually).
The state reports having the fifth highest average deductible for residents with single health insurance coverage through an employer ($2,267.67 annually).
It ranks 11th highest for average deductible for residents with family health insurance coverage through an employer ($4,061.67 annually).
Insurers are not somehow picking on North Carolinians. They set premiums based on the cost of care, and the cost of care is driven in part by regulation and law.
We often tout North Carolina’s high marks in economic rankings, and those are well-deserved. But abysmal headlines like “Most Expensive State in the Country for Health Care” tarnish our business-friendly brand and neuter the impact of tax cuts. If North Carolina health costs maintain this trajectory, our boom decade may be in jeopardy.
The first step to recovery is playing defense against mandates. We’ve written about HB 649, which would introduce new government mandates around utilization review and prior authorization. We’ve also written about HB 246, which sets a minimum price level for drug reimbursements to pharmacies and mandates a new fee.
The second step is going on offense to dismantle protectionist policies like certificate of need and stingy licensing schemes, and hopefully roll back some of the coverage mandates.
Yes, those mandates help a few people, but there’s a cost to that: Everybody else pays more. An appropriate balance is reasonable; ranking as the state with the highest health costs in the entire country suggests that balance got lost somewhere along the way.
