When she vetoed the original State Employee Health Plan (SB265) North Carolina Gov. Bev Perdue indicated that she opposed the increase in premiums, although her own budget proposal would have include premiums, too. With the increase, the total employee’s contribution for their health benefits would have been about 2.7 percent. Although this would have saved NC taxpayers an estimated $400 million over the next two budget years, the governor decided against it.

Nevertheless, on May 23 the separate follow-up bills (SB323/HB578) were allowed to become law without Gov. Perdue’s signature because it delays the monthly premiums for some state employees by as much as a year. The minimal increase in fees do not, however, come close to meeting the states $30 billion unfunded liability.

So what is all the fuss about? Gov. Perdue would have you believe that state employees, especially teachers, cannot afford the individual $11 month premium contribution to their health benefits. This doesn’t seem to be the mindset though in any other state evaluated by the John Locke Foundation. Every other state has taken a stance that without individual contribution and accountability the state health plans cannot survive. Budget deficits, looming state health plan bankruptcy and rising health care costs are making it impossible for taxpayers to fund the entire plan.

In a ten-state comparison, we found that even the proposed increase to $11 a month would leave North Carolina with the lowest percentage of employee contributions to their health plan. Whether likening North Carolina to other southern states or states with collective bargaining for government employees, it has the lowest monthly employee contribution; with states such as Tennessee and California placing 20-30 percent of the state health plan premiums on individuals.

When comparing North Carolina to other states, it makes you wonder what Gov. Perdue was really trying to accomplish with her veto.