State Health Plan administrator fired

RALEIGH -- The State Health Plan's executive administrator was abruptly fired Tuesday after lawmakers discovered a $115 million loss in the fund that provides health care for roughly 650,000 employees' and retirees.

House Majority Leader Hugh Holliman, a Lexington Democrat, and Senate Majority Leader Tony Rand, a Fayetteville Democrat, sent a letter to state Insurance Commissioner Jim Long "requesting a change in leadership," which led to the dismissal of George Stokes. He had led the plan for roughly three years.

"We just felt that we were not informed in the way we should," said Holliman.

Holliman said lawmakers had expected a $50 million surplus in the plan but discovered last week that there was a $65 million deficit. He said it would not affect the state budget for the current fiscal year that began Tuesday but would need to be dealt with in next year's state budget.

He said the prior administrator, Jack Walker, has been asked to lead the health plan on an interim basis.

The letter sent to Long said that "we very much appreciate Mr. Stoke's service to the state and regret that this action is necessary, but believe it to be essential."

Chrissy Pearson, a spokeswoman for the state Insurance Department, said Long and other staff had no idea there were problems with the fund or with Stokes' management.

"It has caught us by surprise," she said.