Report: Blue Cross overhead method consistent

RALEIGH, N.C. — An accounting report found Blue Cross and Blue Shield of North Carolina charged the state employee health insurance plan overhead to help pay for food for company board meetings, the chief executive officer and other broad expenses.

But the outside review of expenses charged by Blue Cross to administer the plan made public Tuesday found the company complied with the language in its contract. The accountants also determined Blue Cross allocated overhead in a manner consistent with its other lines of business.

The issue of overhead arose last year when the Legislature approved premium increases and reduced benefits to narrow a shortfall. The employees’ union and others complained that Blue Cross wasn’t asked to share in the pain. Blue Cross’ profit on the contract is less than 1 percent.

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