Department of Civil Service

NY12-23

TO: New York State Health Benefits Administrators of Enrollees represented by Council 82
FROM: Employee Benefits Division
SUBJECT: NYSHIP Contribution Rate Changes Effective October 1, 2011 and September 1, 2012, Special Option Transfer Period for Enrollees represented by Council 82
DATE: June 28, 2012

As the result of the collective bargaining agreement ratified on May 3, 2012, the New York State Health Insurance Program (NYSHIP) premium contribution sharing arrangement for enrollees represented by Council 82 is changing retroactive to October 1, 2011. A Special Option Transfer Period will be made available to these employees as a result of premium contribution changes.

Since all affected employees are in positions SG-10 or higher, the State's contribution will be 84% of the cost of enrollee coverage and 69% of the cost for dependent coverage. The State's contribution to the cost of HMO coverage continues to be capped based on the dollar amount of its contribution to the cost of Empire Plan coverage.

Since premium deductions for coverage beginning with the period including October 1, 2011 will have already been taken, the increase in the cost of NYSHIP coverage will be calculated, and this differential will be applied to the paychecks dated August 23, 2012 for affected employees on the Institution payroll and August 29, 2012 for affected employees on the Administration payroll. This retroactive health insurance special adjustment for NYSHIP premiums will be coordinated to impact the same paycheck in which retroactive payments will be disbursed in accordance with the 2009 a?? 2016 agreement between the State and Council 82. To assist enrollees in calculating the biweekly retroactive health insurance adjustments please visit HBA Online under Health Plan Choices > Rates and Option Transfer Information and select Retroactive Health Insurance Special Adjustments.

Attached are the rate charts, which reflect the NYSHIP rates for the affected employees for 2012. To calculate the impact of the differential on affected employees' paychecks please locate the enrollees represented by Council 82 retroactive special adjustment differential amounts posted on HBA Online during the Special Option Transfer period for this group. The enrollees represented by Council 82 retroactive special adjustment differential amounts are calculated on a pay period basis, with adjustments made for 23 or 24 payroll periods across 2011 and 2012, depending on the employee's payroll cycle.

For Council 82 positions on the Administration payroll this will include the last seven payroll periods for 2011 coverage and the first 17 payroll periods for 2012 coverage. For Council 82 positions on the Institution payroll this will include the last six payroll periods for 2011 coverage and the first 17 payroll periods for 2012 coverage.

In addition to this special adjustment, the health insurance regular premium deductions will reflect the benefit changes effective September 1, 2012.

• Enrollees in positions represented by Council 82
  • Active Employee Share for Individual and Family Coverage
  • Full Share (Net Leave Without Pay) for Individual and Family Coverage

Special Option Transfer Period (July 2 - July 31)
As a result of these changes, there will be a Special Option Transfer Period during the month of July. The Special Option Transfer Period will be July 2, 2012 through July 31, 2012 and is available to enrollees in positions represented by Council 82 enrolled in NYSHIP, regardless of their participation in the Pre-Tax Contribution Program (PTCP), as permitted under PTCP rules. To assist enrollees while making a decision about changing options, please refer to NYSHIP Rate Changes Effective September 1, 2012 for employees represented by Council 82. This flyer shows the enrollee contribution rates that will be in effect retroactive to October 1, 2011 and explains the Special Option Transfer Period. This chart is available on HBA Online under Health Plan Choices > Rates and Option Transfer Information.

Please call the HBA Help Line if you have any questions about whether an enrollee's requested option change is permissible.

Enrollees who are considering changing their health insurance plan should be encouraged to carefully review the 2012 NYSHIP Choices booklet, the June 2012 Empire Plan Report and the June 2012 HMO Report that describes benefit changes, and the NYSHIP Rate Changes Effective September 1, 2012 flyer for enrollees positions represented by Council 82. The latter three publications will be mailed to enrollee homes in late June and early July. Enrollees may request 2012 Choices booklets from you to assist them in the decision-making process.

Please provide the Health Insurance Transaction Form PS-404 to those enrollees requesting an option change. Forms must be completed and returned to you by July 31, 2012. Online option changes using MyNYSHIP will NOT be available to enrollees during this Special Option Transfer Period.

No action is required for enrollees who wish to keep their current health insurance option.

Opt-out Program for 2012
The Opt-out Program will be available to enrollees in positions represented by Council 82 during the Special Option Transfer Period. Please refer to memo NY11-46r2 for clarification on how to process these transactions.

The Opt-out Program will be an available option for enrollees in positions represented by Council 82 to elect during the Special Option Transfer Period. The incentive payments will be reimbursed through the employee's biweekly paychecks through the end of the year.

The incentive amount will be credited to the employee's bi-weekly paycheck and will be treated as taxable income. The biweekly incentive amounts will be $38.47 for opting out of Individual Coverage or $115.39 for opting out of Family coverage.

For enrollees in positions represented by Council 82, there are 9 pay periods remaining in plan year 2012 for which an enrollee would be eligible to receive a biweekly Opt-out incentive payment. For employees on the Institution payroll, this will begin with the paycheck of August 23 and for employees on the Administration payroll, it will begin with the paycheck of August 29.

NYBEAS Processing and Important Dates for Benefit Plan Changes
To process a Benefit Plan Change during this Special Option Transfer period, the PLN/CHG transaction should be used. The effective dates for Benefit Plan changes during this Special Option Transfer period are as follows:

• August 23, 2012 for Institution payroll employees
• August 29, 2012 for Administration payroll employees

The PLN/CHG transaction will be available on NYBEAS between August 1 and August 31. Please see the charts below for more details, and for the dates that transactions must be processed in order to avoid retroactivity in health insurance deductions.