NC H578

Allows the State Health Plan for Teachers and State Employees to offer the Basic Plan premium-free during fiscal year 2011-2012 if sufficient cash balance reserves are available.

Delays implementation of certain State Health Plan changes from July 1, 2011 to September 1, 2011, with specific sections remaining effective July 1, 2011.

Modifies dependent child eligibility to comply with the Federal Affordable Care Act, extending coverage for dependent children up to age 26 and standardizing eligibility criteria across natural, adopted, foster, and step-children.

Grants the Department of State Treasurer immediate access to confidential State Health Plan records to prepare for the plan's transfer on January 1, 2012.

Clarifies the State Health Plan's subrogation rights and establishes staggered initial board appointment terms of 2.5 and 3.5 years, ensuring the board includes members representing employees, teachers, retirees, and diverse areas of expertise.