This is to advise you that Harvard Pilgrim Health Care of New England, Inc. (HPHCNE), Code 70, an HMO serving all of Rhode Island and certain adjacent towns in the State of Massachusetts, is under rehabilitation by the State of Rhode Island and will no longer participate in the FEHB Program, effective December 31, 1999 (12 midnight).

Employees may not newly enroll in HPHCNE. In addition, we are authorizing a special open season for employees enrolled in the plan to allow them to choose new plans. Employees who wish to maintain FEHB coverage must enroll in new plans during this special open season. This open season is effective immediately and will continue through December 18, 1999. Agencies are, however, asked to apply this cut-off date liberally if necessary.

HPHCNE will send its enrollees a letter on Office of Personnel Management (OPM) stationery (see attachment), advising them of this special open season. Only Federal enrollees enrolled in HPHCNE, Code 70, are eligible to enroll in another health plan during this special open season. Federal enrollees enrolled in Harvard Pilgrim Health Care, Inc., Code 68, are not eligible for this special open season.

Because the plan will cease operations on December 31, 1999, enrollment changes made during this open season should be made effective the pay period beginning on or after November 1, 1999, and no later than December 19, 1999. Since this special open season overlaps the regular open season, agencies will need to identify their employees enrolled in Code 70, to ensure that these changes are not processed as a regular open season change resulting in a year 2000 effective date.

It is important to note, enrollees in HPHCNE, Code 70, will retain their new Plan selection for both calendar years 1999 and 2000. Therefore, they should pay particular attention to the benefits and premiums for both calendar years, 1999 and 2000.

Lastly, please be aware that the United Healthcare of New England, Inc., enrollment Code VF, will not participate in the FEHB Program in calendar year 2000.

Thank you for your cooperation in this matter.

Abby L. Block, Chief Insurance Policy    and Information Division

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