State of California

  M E M O R A N D U M

  REFERENCE CODE:
  2001-033


  DATE:
  September 6, 2001


  TO:
  Personnel Officers

  Personnel Transactions Supervisors

  Personnel Transactions Staff


  FROM:
  Department of Personnel Administration
  Benefits Division


  SUBJECT:
  2002 DentiCare and PMI Premium Increases


  CONTACT:
  William Page, Benefits Program Analyst

  (916) 445-9801, CALNET 485-9801

  FAX: (916) 322-3769

  Email: WilliamPage@DPA.CA.GOV



  The Department of Personnel Administration (DPA) recently 
  released PML 2001-030, dated August 15, 2001, regarding the 
  State's open enrollment period.  In the premium rate 
  information for the State's dental plans, we indicated that 
  the State was in the process of negotiating the dental 
  premiums to be effective January 1, 2002, for DentiCare, PMI, 
  SafeGuard, and SmileSaver.  This is to inform you that there 
  will be a 3 percent rate increase in the dental premiums for 
  the DentiCare and PMI dental plans.  The Safeguard and 
  SmileSaver prepaid dental plans premiums will remain at the 
  current 2001 level.  Additionally, the premiums for the 
  DeltaPremier and DeltaPreferred Option (DPO) dental plans 
  will remain at the current 2001 level.

  

  The State contribution for the four prepaid plans will 
  continue to be 100 percent of the premium with no employee 
  copayment.

  

  DentiCare and PMI Premiums

  

  The premium charts (Attachment IV and Attachment V of 
  PML 2001-030) have been revised to reflect the new 2002 
  dental premiums for DentiCare and PMI.  The premium rates 
  will go into effect on January 1, 2002.  Attachment IV 
  contains rates for active employees and retirees and 
  Attachment V reflects the rates for COBRA participants.

   
  

  DPA is notifying current PMI and DentiCare COBRA participants 
  of the rate increase.

  

  Impact on Employees in Consolidated Benefits (CoBen)

  

  Currently, all excluded employees and represented employees 
  in Bargaining Units 7, 8, 16, 18, and 19 are in the 
  Consolidated Benefits (CoBen) Program.  Eligible employees in 
  CoBen pay the total dental premium with their CoBen benefit 
  allowance amount.  If the combined cost of their health, 
  dental, and vision benefits is less than the benefit 
  allowance provided by the State, the excess money will be 
  paid to them as taxable cash and will be reflected on the 
  their monthly pay warrant.

  

  If the combined cost of their health, dental, and vision 
  benefits is more than the benefit allowance provided by the 
  State, the difference will be reflected as a pretax deduction 
  on their monthly pay warrant and, therefore, will not be 
  subject to federal, state and, if applicable, Social 
  Security/Medicare taxes.

  

  For employees enrolled in CoBen and DentiCare or PMI, the 3 
  percent premium increase will be deducted from their 
  benefit allowance amount.

  

  Departments should advise impacted employees regarding this 
  change.  If you have any questions regarding this information 
  or the enclosed attachments you may contact William Page, 
  Benefits Program Analyst, at (916) 445-9801 or CALNET 485-
  9801.

  

  

  

  

  Terri Westbrook, Chief

  Benefits Division

  

  Attachments