The fight between the State Health Plan and Atrium Health got much bigger this week. Here’s what members need to know.

Atrium hospitals in Charlotte and the Triad are now out of network for 2027. On Wednesday, the Plan said Atrium’s hospitals and clinics in those regions will be out of network next year. Atrium has said it will absorb the extra cost so members don’t pay more. The Plan’s answer: Atrium should be held to that promise. Moving those facilities out of network is expected to save the Plan hundreds of millions of dollars.

Why this happened. This year the Plan asked hospitals to compete on price. Novant and UNC Health offered the best deals and became preferred providers, with lower costs for members. Atrium did not offer the same deal. Instead, it announced its own program that waives deductibles and coinsurance for state employees who use Atrium.

That sounds good, but it doesn’t lower what Atrium charges the Plan. It only shifts the bill. State Treasurer Brad Briner warns that if the program goes forward, premiums could rise as much as $50 a month in 2028 for every member, including those who never use Atrium. The Treasurer sued to stop the program. A judge denied that request on Tuesday, but the lawsuit continues.

“The employee could save money on the day they go get that service,” said SEANC Executive Director Ardis Watkins, “but the employee will lose shortly thereafter when their premiums go up, when the General Assembly has no money for raises.”