A North Carolina judge on Tuesday denied the State Health Plan's request to block a program from Atrium Health that would lower copays for plan members, Carolina Journal and Fierce Healthcare reported.

Judge Matthew Houston ruled from the bench after a hearing, both outlets reported. The ruling lets Atrium start the program for the 2027 plan year, Fierce Healthcare said.

The State Health Plan covers teachers, state workers and their families. This year it set up tiers that give members lower copays when they use lower-cost providers. Only some of Atrium's services were put in the top tier, Fierce Healthcare reported.

Atrium's new program would cut members' out-of-pocket costs at its hospitals and doctors. The state says that would steer members to Atrium while the plan keeps paying Atrium's higher rates. State Treasurer Brad Briner has said the program could bankrupt the plan, both outlets reported.

"The State Health Plan is funded by member and taxpayer dollars and those resources are finite," Briner said in a statement, Carolina Journal reported.

After the ruling, the plan said it is looking at other legal options. It also said it may have to raise premiums for all members by as much as $50 a month in 2028, both outlets reported.

Steve Smoot, an executive at Atrium's parent company, Advocate Health, said Atrium was pleased with the ruling. He said more than 80,000 plan members trust Atrium with their care. "Our offer to match the Preferred Tier discounts and designation is still on the table, and it would save the Plan money," Smoot said, according to both outlets.

The plan has also pushed its open enrollment deadline back to Nov. 6, Carolina Journal reported.

What we know: A judge has refused to block Atrium's copay program, and the State Health Plan warns premiums may rise.
What we don't: Whether the state will appeal, and how many members will sign up for Atrium's program.