PURPOSE

This letter transmits lists of significant events affecting certain plans during the upcoming FEHB open season. Please note that some of these events will require action on the part of agencies and enrollees. Also note the plans that are dropping out of the Program at the end of 1999. Since employees in these plans must enroll in new plans during open season if they are to continue insurance coverage in 2000, we ask that you distribute this list widely within your agencies.

TERMINATIONS

Attachment 1: Plans Dropping Out of FEHB for 2000

Attachment 2: Plans Terminating its Standard Option

Attachment 3: Plans Reducing Their Service Areas by Terminating an Enrollment Code

1. What must employees do? Employees in terminating plans (Attachment 1) or in terminating codes (Attachment 3) must choose a new health plan during open season.

2. Transfer members in the Standard Option to High Option of the plan listed in attachment 2.

3. New coverage. Coverage under an enrollee's new health plan will be effective the first day of the pay period beginning on or after January 1, 2000: for most employees this will be January 2, 2000. Enrollees will remain covered and receive benefits under the old plan until coverage under the new plan becomes effective.

4. Plan Notification. The plans in Attachments 1 and 3 have been instructed to notify enrollees of the need to select new health plans for 2000. However, some plans' enrollment and address lists may not be up to date.

5. What must agencies do? Agencies must notify employees in these terminating plans and enrollment codes to select new plans or lose coverage.

   We strongly recommend that you distribute copies of these lists to each employee, along with your agency's notice about open season.

   We also recommend that you follow up with employees in these plans to remind them to select new plans.

6. Belated changes. Some employees still might not get the word to change plans during open season. We encourage you to be liberal in accepting belated open season changes from employees enrolled in terminating plans/enrollment codes.

SERVICE AREA REDUCTIONS

Attachment 4:

Plans Significantly Reducing Their Service Areas Without    Terminating an Enrollment Code.

Enrollees in the service areas being terminated must elect new health plans for 2000. Enrollees who do not choose new health plans will have to travel to their plan's remaining service area to receive full benefits.

Attachment 5:

Plans Splitting a Service Area

Enrollees in these plans must complete a Standard Form (SF) 2809 to enroll in the new code for their service area or elect another health plan during the open season. Enrollees in the old code will have to travel to their plan's remaining service area to receive full benefits from the plan.

Agency Action Required. We strongly recommend that you distribute a copy of these lists to each employee, along with your agency's notice to employees about open season. If you don't distribute the lists, remind employees to check their new health plan brochures carefully to see if there has been any changes to their plans' service areas that will affect them.

OTHER SERVICE AREA CHANGES

Attachment 6: Service Area Consolidations

These plans are consolidating their service area; i.e., changing from one or more enrollment areas to one. The service areas will remain the same, but they will be included under one enrollment code. Enrollees in the "departing" enrollment code(s) will be transferred automatically to the remaining enrollment code.

Attachment 7: New plans entering the Program for 2000

Attachment 8: Service Area Expansions With a new Enrollment Code

Attachment 9: Significant Service Area Expansions Without new Enrollment Codes

Agency Action Required. Be sure to include these new plans and expanded service areas when you count the number of eligible employees and place your orders for brochures.

MISCELLANEOUS CHANGES

Attachment 10: Plan Mergers

These plans are merging with another plan at the end of 1999. Enrollees in the "old" plans will be transferred automatically to the "new" plans and need take no action. Enrollees in the old plans, must choose different plans during open season if they do not wish to be transferred to the new plans.

Attachment 11: Plan Name Changes

Attachment 12: Enrollment Code Changes

Attachment 13: Plans Adding a Point of Service Product

Attachment 14: Plans Dropping a Point of Service Product

This plan is dropping its Point of Service Product (POS) for 2000. Enrollees who use the POS Option may want to consider change plans during open season.

Abby L. Block, Chief Insurance Policy     and Information Division

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