The Associated Press September 7, 2011, 1:15PM ET

Auditors critical of NC health plan contract

State auditors say North Carolina's health insurance plan for workers could have saved more than $1 million if it had written a better contract with a hospital and monitored rates more closely.

State Auditor Beth Wood's office released an audit Wednesday of the North Carolina State Health Plan for Teachers and State Employees and a contract with Wake Forest University Baptist Hospital.

Auditors say plan officials didn't take advantage of outpatient discount rates allowed in the contract between 2003 and 2008 because they lacked contract monitoring and failed to seek information that could have led to expense reductions.

The audit said the health plan failed to recover about $640,000 from the hospital related to higher payments.

The health plan agreed with Wood's findings and said improvements have been made.


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