We have just learned that Kaiser Foundation Health Plan of North Carolina, code QT, will cease operations in the state of North Carolina before the end of the 1999 contract year. The plan will no longer participate in the FEHB Program.

The Kaiser plan has entered an agreement with PARTNERS National Health Plans of North Carolina ("PARTNERS"), to transfer its North Carolina HMO business to PARTNERS. Effective November 1, 1999, PARTNERS will administer Kaiser's 1999 contract with the Office of Personnel Management (OPM). PARTNERS will, throughout the remainder of this year, continue to provide enrollees with the same health care coverage and benefits that they are currently receiving.

If during the open enrollment period, enrollees do not elect a new carrier, their benefits and health care coverage will be through PARTNERS (CS 2650, Enrollment Code EQ) under its benefit and rate structure starting January 1, 2000. PARTNERS will send a copy of its brochure within the next few weeks to Kaiser enrollees. We encourage enrollees to read it carefully and compare their current benefit level with that of PARTNERS for the year 2000.

Pleased be advised that OPM is granting enrollees in this Kaiser plan, the option to make a non-open season enrollment change to other participating health plans, should they encounter difficulty with continuity of care through PARTNERS provider network. We recommend that employees ask their physician if he or she has made any plans to continue to provide care to persons enrolled in any other FEHB plan. Kaiser has sent out a letter on its stationery to its enrollees alerting them of this situation. Federal employees may take a copy of this letter to their personnel office and complete a new SF 2809. We have attached a copy of the letter for your information.

Please be aware that Personal Care Plan and WellPath Select will not participate in the FEHB Program in 2000; consequently, if members enroll in either of these plans, they will have to make another open season enrollment change to another plan in order to receive health benefits in 2000.

Thank you for your cooperation in this matter.

Abby L. Block, Chief Insurance Policy    and Information Division

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