News & Observer | newsobserver.com | Fired health plan leader challenges decision

Published: Jul 12, 2008 12:30 AM
Modified: Jul 12, 2008 02:26 AM

Fired health plan leader challenges decision

 

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The former executive administrator of the State Health Plan, who was abruptly fired last week, challenged his removal in a letter released Friday.

George C. Stokes said the two legislative leaders who effectively fired him gave "invalid, inaccurate and misleading" statements about the plan's finances and failed to follow proper procedure in removing him from the position.

"I know for certain that the State Health Plan was in no jeopardy whatsoever and there was absolutely no need for the precipitous action they took," Stokes said in the letter, which was released by his attorney, James E. Ferguson II of Charlotte.

Senate Majority Leader Tony Rand and House Majority Leader Hugh Holliman caused Stokes to be fired by sending a letter to state Insurance Commissioner Jim Long. The two leaders said that they had received information showing that the plan's finances had swung from $50 million in the black to $65 million in the red.

They said the change in the plan's fortunes could mean higher premiums. They also said that legislative staff had a difficult time getting information about the plan's finances.

Rand said Friday that he stood by the reasons for Stokes' firing. Rand said the plan's deficit may be worse than expected and may need a financial boost from the state. He said the plan's interim administrator, Jack Walker, is assessing the plan's solvency.

"We're trying to see if we have sufficient resources to get to the end of the year," Rand said.

Long called Stokes and fired him. A spokeswoman for Long said he had little choice under the law governing the plan's operations.

The plan serves nearly 650,000 state employees, teachers, retirees and their dependents. Stokes, 61, had been the executive administrator for three years. He made $167,872 a year.

Stokes said in the letter that Long's call was the first Stokes had learned anything was considered awry. "I felt then, as I feel now, that I was being dealt with in a high-handed, unprofessional, unfair and inappropriate fashion."

He also said his firing violated state law. He said Long could remove him only after receiving advice from the executive committee of the Committee on Employee Hospital Medical Benefits. "To my knowledge, no such executive committee has existed and functioned during my tenure," Stokes said.

He said his lawyer is working with Long to try to rectify "the wrongs that have been done without going through the costly and cumbersome process of litigation."

dan.kane@newsobserver.com or (919) 829-4861
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