The Empire Plan is a unique health insurance plan designed especially for public employees in New York State. Empire Plan benefits include inpatient and outpatient hospital coverage, medical/surgical coverage, Centers of Excellence for transplants, infertility and cancer, home care services, equipment and supplies, mental health and substance abuse coverage and prescription drug coverage.
GOVERNOR
DEPARTMENT OF CIVIL SERVICE
ALBANY, NEW YORK 12239
www.cs.ny.gov
COMMISSIONER
DANIEL E. WALL
EXECUTIVE
DEPUTY COMISSIONER
NY96-52
PE96-30
PA96-12
TO: Health Benefits Administrators
FROM: Employee Benefits Division
SUBJECT: State Prescription Drug Negotiations Terminated
DATE: October 24, 1996
As you may know the State, as a result of the competitive bid process, had recently made a tentative award of the Prescription Drug program to Medco Containment Insurance Company. However, as explained below, this change will not be taking place on January 1, 1997. The following is the text of the press release which was issued:
"Following a period of earnest negotiations between the State and Medco Containment Insurance Company of New York, the parties were unable to reach a final agreement and have mutually decided to terminate negotiations pertaining to the Empire Plan Prescription Drug Program. The contract was to have taken effect on January 1, 1997.
To assure there will be no interruption of service, the Department of Civil Service is making immediate plans, subject to the approval of the State Comptroller's Office, to extend the current contract with CIGNA to ensure continuity of service for plan enrollees. The Empire Plan Prescription Drug Program provides prescription drug benefits to 758,000 State and local government employees and their dependents.
The State will rebid the contract and issue a new Request For Proposal (RFP) within this calendar year.
The State is precluded from discussing the details of the negotiations or the bidding process in order to ensure the integrity of the competitive bid process and to help assure that proposals received in response to the upcoming RFP present the best possible value for the State.