State Health Plan ditches Aetna, sends business back to Blue Cross

July 10, 2026 - 22:10

The State Health Plan for North Carolina government workers is switching insurers again, sending the contract back to Blue Cross Blue Shield of North Carolina after a brief and rocky stint with Aetna. The decision, approved by the plan's board, effectively restores the arrangement that had been in place for decades before the board voted in 2023 to hand the business to Aetna.

That earlier shift was meant to save money and improve services, but it quickly ran into problems. State employees reported confusion over coverage, denied claims, and difficulty finding in-network providers. Complaints piled up, and the board faced mounting pressure to reconsider the deal.

Now, Blue Cross Blue Shield will once again manage health insurance for roughly 750,000 state employees, teachers, retirees, and their dependents. The new contract is expected to begin in 2025. Officials say the move will bring stability and a smoother experience for members, though some critics question whether the state is simply returning to a familiar monopoly without addressing underlying cost issues.

The plan covers a large portion of North Carolina's public workforce, making the decision a significant one for both the state budget and the daily lives of hundreds of thousands of people.