Under the agreement announced Oct. 26, all Atrium hospitals and doctors will be in the plan’s middle “access” tier next year. Members should be able to continue receiving care from Atrium at roughly their current out-of-pocket costs, according to the plan and Atrium. The plan has not yet estimated how much the new rates will save.

The deal came after State Treasurer Brad Briner announced Oct. 14 that most Atrium providers would be out of network in 2027. Atrium then returned to negotiations with discounts that were “materially better” than its earlier offers, said Thomas Friedman, the plan’s executive administrator.

The dispute unfolded as members began open enrollment, which runs through Nov. 6. The uncertainty was especially consequential in the Charlotte area, where Atrium is a major health care provider. The American Federation of Professional Educators in North Carolina, which represents public school teachers, had urged Briner and Advocate Health CEO Gene Woods to resume talks, warning that families should not have to make health care decisions without clear information about costs.

Briner said the agreement gives members greater certainty, while emphasizing that they may save money by choosing providers in the plan’s preferred tier. That network includes Novant Health, UNC Health, Iredell Health and about 4,500 independent providers, including Charlotte-based Tryon Medical Partners.

“It is your choice,” Briner said, urging members to compare their options. He said the negotiations produced a better outcome for plan members, though he acknowledged the public dispute had caused worry.

The conflict began in July, when the plan introduced a three-tier provider network following a yearlong bidding process. Atrium was initially placed in the most expensive, non-preferred tier. A September agreement moved some rural Atrium hospitals and its children’s hospitals into the middle tier, but most of the system remained non-preferred.

Atrium announced an affordability program on Oct. 6 to reduce members’ out-of-pocket expenses. Briner objected that the plan would still pay Atrium’s higher rates, undermining efforts to contain costs. He sought a court order to block the program, but a judge denied the request. Days later, Briner announced that most Atrium providers would be removed from the network for 2027, prompting renewed negotiations.

The State Health Plan covers about 750,000 people. When Briner took over in 2025, it faced a projected $507 million deficit that could grow to $1.3 billion by 2027 without changes, according to figures cited by plan officials. The new agreement’s effect on the plan’s finances remains uncertain. Friedman expects an updated projection in four to six weeks.

The provider contracts are set for three years, with options to extend them for up to two additional years. Briner said he hopes any savings will help the plan invest in preventive care for members, including workers and retirees likely to remain enrolled over the long term.