Department of Civil Service

NY09-46

TO: State Agency Health Benefits Administrators
FROM: Employee Benefits Division
SUBJECT: Option Transfer for the 2010 Benefit Year; Changes for 2010 Pretax Selection and Domestic Partner Federal Qualification Periods.
DATE: November 5, 2009

This memo includes items specific to this option transfer period. Refer to Chapter Five of the HBA Manual for general issues to be considered during each annual option transfer period.

Dates for the 2010 Option Transfer Period

The Option Transfer Period for New York State employees will be established once NYSHIP rates are approved by the Division of the Budget; the Option Transfer Period will be at least 30 days. The dates will be communicated through a NYBEAS System Announcement and posted on both HBA Online and NYSHIP Online as soon as they are established.

MyNYSHIP for Option Transfers for 2010 Plan Year

Active New York State employees can process Option Transfers online through MyNYSHIP. Refer to memo NY07-39 . All other health insurance changes must continue to be submitted to the agency HBA for processing.

Visit NYSHIP Online at https://www.cs.state.ny.us for up-to-date information on Option Transfer and the 2010 rates.

Year 2010 Benefit Plan Effective Dates

           The effective dates for Benefit Plan changes are:

           1/7/2010 for Administration payroll employees

           12/31/2009 for Institution payroll employees

In order to avoid retroactive premium adjustments, Benefit Plan Change transactions must be entered by agencies on Administration Lag payrolls no later than 12/22/09. Institution Lag agencies must enter Benefit Plan Change transactions no later than 12/15/09.

To avoid retroactivity, Administration Lag Exempt agencies must enter Benefit Plan Change transactions no later than 12/8/09. Institution Lag Exempt agencies must enter Benefit Plan Change transactions no later than 12/1/09.

HMO changes

There are no new HMOs for 2010.

MVP Central Region (Option Code 330) is expanding into Tompkins County.

Preferred Care changed its name to MVP Health Care (Option Code 058) as of April 30, 2009.

Oneida County returns to CDPHP’s Medicare Advantage Plan (Option Code 300).

Univera Healthcare (Current Option Code 057) will no longer be offered under NYSHIP. All Univera enrollees must select another option during Option Transfer. If no Option Transfer request is submitted, they will automatically be enrolled in The Empire Plan effective January 7, 2010 for employees on Administration payrolls, and December 31, 2009 for employees on Institution payrolls. Individual letters regarding this matter were mailed to each NYSHIP enrollee currently enrolled in Univera in late October.

Change in Health Insurance Coverage during Open Enrollment Period

To make a health insurance coverage change for the following PTCP Plan Year, enrollees currently participating in the Pre-Tax Contribution Program (PTCP) must complete a PS-404 and submit it to their HBA prior to November 30, 2009.* You must enter the CCO/OPN or CAN/OPN on NYBEAS using the dates of request on the PS 404.

Remember- If coverage is being changed between two NYSHIP enrollees, coordinate the dates with the other enrollee’s HBA before submitting transactions.

In order to avoid retroactive premium adjustments, change of coverage transactions must be entered by agencies no later than 12/22/09 for employees on Administration Lag payrolls, and no later than 12/15/09 for employees on Institution Lag payrolls.

In order to avoid retroactivity, Administration Lag Exempt agencies must enter change of coverage transactions no later than 12/8/09. Institution Lag Exempt agencies must enter change of coverage transactions no later than 12/1/09.

* Note: Changes to family coverage (CCO) without a qualifying event are still subject to a late enrollment waiting period and should be keyed in the order of transaction effective dates.

Pre-Tax Contribution Program (PCTP) Procedures

Below are agency operating procedures for your use. A designated fact sheet for employees is included as Attachment A and should be posted at work sites. Important! IRS Regulations are very specific for changes in PTCP status.

Submitting Changes for Tax Status Election

If the NYSHIP enrollee is currently enrolled in PTCP for the 2009 Plan Year and wishes to opt out of PTCP for the 2010 Plan Year, or is not enrolled in PTCP and wishes to opt in for Plan Year 2010, the enrollee must complete a PS-404 and return it to his/her HBA, postmarked no later than November 30, 2009. Hand-delivered PS-404s should be date-stamped upon receipt.

Send a copy of the PS-404 to EBD in an envelope clearly marked with your agency code and the word PRETAX on it by November 30, 2009. If you send forms to EBD after November 30, 2009, you must include proof of timely request by the enrollee (i.e. an envelope postmarked on or before November 30, 2009). Submission of this form will effect a change in the PTCP status for the Plan Year 2010. These are to be keyed by EBD only.

The requested changes in PTCP status (pretax or post tax) will impact the first payroll deduction for the 2010 Plan Year.

           1/6/2010 for Administration payrolls

           12/31/2009 for Institution payrolls

Domestic Partner Qualification Reporting Period

The annual Domestic Partner Federal Qualification reporting period also runs from November 1, 2009 through November 30, 2009. Enrollees who are eligible to change the federally qualified status of their domestic partner must submit a PS425.3 (Dependent Tax Affidavit) to their HBA requesting the change in federally qualified status. This period will not be extended. Follow the Pre-tax submission procedures reflected above when sending the PS425.3.

The requested changes in Domestic Partner Federal Qualification reporting will impact the first payroll deduction for the 2010 Plan Year.

           1/6/2010 for Administration payrolls

           12/31/09 for Institution payrolls

Attachments:
Attachment A
Attachment B