State of California M E M O R A N D U M REFERENCE CODE: 2002-047 DATE: August 16, 2002 TO: Personnel Officers Personnel Transactions Supervisors Personnel Transactions Staff FROM: Department of Personnel Administration Benefits Division SUBJECT: 2002 Open Enrollment Period for Dental, FlexElect, and Consolidated Benefits (CoBen) Programs and Dental Plan Premiums Increase CONTACT: Bryan Bruno, Benefits Program Analyst (916) 445-9841, CALNET 485-9841 FAX: (916) 322-3769 Email: BryanBruno@DPA.CA.GOV Here's information on the 2002 Open Enrollment Period for Dental, FlexElect, and Consolidated Benefits (CoBen) Programs and the increased dental premiums. Please make sure your employees know about the open enrollment period and the higher rates. DPA will mail dental open enrollment information to retirees and annuitants in August 2002. We've attached memos for you to distribute to your employees. Attachment I covers enrollment in all benefit plans. Attachment II focuses on employees dental plan options and cost comparison. Attachment III & IV reflect premium rate information. Attachment I - Memorandum to All State Employees Attachment II - Dental Plan Options and Cost Comparison Attachment III - 2003 Dental Plan Premium Rates Attachment IV - 2003 COBRA Group Continuation Rates Please note, there has been a name change for DentiCare and SmileSaver: DentiCare is now called Health Net Dental, Inc. and SmileSaver is now called GE Wellness Plan Dental. OPEN ENROLLMENT Open Enrollment for Dental, FlexElect, and Consolidated Benefits (CoBen) will be September 3, 2002, through October 18, 2002. Enrollments/changes during this period are effective January 1, 2003. For dental, eligible employees may enroll, cancel, or change plans, and add/delete dependents. For FlexElect and CoBen, eligible employees may enroll, cancel, or change their current options. No action is necessary for currently enrolled employees who don't want to change their FlexElect Cash Option, CoBen Cash Option, and/or dental enrollment. However, Permanent Intermittent (P.I.) employees must reenroll in the Cash Option during open enrollment if they want to remain in the program next year. Additionally, employees who want to continue enrollment next year in a FlexElect Reimbursement Account must reenroll during open enrollment. Completing the Open Enrollment Documents Use the following information to complete open enrollment forms. Permitting Event Date: Dental - 9/3/02 FlexElect/CoBen Cash Leave blank Effective Date: 1/1/03 (Dental, FlexElect, CoBen Cash) Permitting Event Codes: Dental 03 New Enrollment 15 Add/Delete Dependent(s) May use one form for all dependent changes 28 Change of Plan 29 Change of Plan and Add/Delete Dependent(s) May use one form for All dependent changes FlexElect/CoBen Leave Permitting Event Code blank Deadlines: 10/18/02 Last day for employees to sign and submit open enrollment documents to Personnel. 10/31/02 Last day for enrollment documents to be received in employing office (as shown on enrollment forms). 11/15/02 Last day for receipt by SCO of all open enrollment documents from Personnel Offices. 12/10/02 Last day for receipt by SCO of any open enrollment documents that were returned to departments for correction, in order to be reflected on the 1/1/03 paycheck. DENTAL PROGRAM DPA currently contracts with Delta Dental, Health Net Dental, Inc., Private Medical Care, Inc. (PMI), SafeGuard Health Plans (SafeGuard), and GE Wellness Plan Dental to provide dental insurance for eligible: 1. excluded employees; 2. represented employees in all Bargaining Units except Units 5 and 6; and 3. retirees/annuitants. The California Association of Highway Patrolmen (CAHP) offers its own indemnity dental plan to BU 5 employees who are CAHP members, but its members may opt to enroll in a State-sponsored prepaid plan. The California Correctional Peace Officers Association (CCPOA) provides dental insurance to BU 6 employees who are CCPOA members. Restriction on Enrollment in Delta Dental Plans Except as noted below, employees may only enroll in a State-sponsored prepaid dental plan during their first 24 months of State service. At the end of this 24-month period, employees who wish to enroll in the DeltaPremier or DeltaPreferred Option plan have 60 days to do so. This enrollment is available outside the open enrollment period. The following employees are not subject to the 24-month restriction: Employees in Bargaining Units 2, 7, 8, 16, 17, 18, and 19; Excluded employees; and Employees who were previously State employees for 24 consecutive months without a permanent break in service during the 24 months. CCPOA Dental Plan Restriction Bargaining Unit 6 (R06) employees who are restricted to the union-sponsored prepaid Western Dental Plan must complete 12 months in the prepaid plan before they are allowed to enroll in the union-sponsored indemnity dental plan. At the end of this 12-month period, employees have 60 days to enroll in the union-sponsored indemnity dental plan if they want to. This enrollment is available outside the open enrollment period. CAHP Dental Plan Restriction Bargaining Unit 5 (R05) employees who are restricted to a State-sponsored prepaid dental plan must complete 24 months of State service before they are allowed to enroll in the indemnity Blue Cross Dental Plan. At the end of this 24-month period, employees have 60 days to enroll in their union-sponsored Blue Cross Dental plan if they want to. This enrollment is available outside the open enrollment period. Delta Dental 2003 Premiums Delta Dental rates will increase for the DeltaPremier and DeltaPreferred Option (DPO) dental plans, effective January 1, 2003. Impact on Employees not in Consolidated Benefits (CoBen) In accordance with the collective bargaining agreements, employees not in CoBen who currently are enrolled in either the DeltaPremier or DPO plans will see an increase in their out-of-pocket premium on their January 1, 2003, pay warrants (December 2002 pay period). The full amount of this increase will be paid by the employee. Impact on Employees in Consolidated Benefits (CoBen) Currently, employees in Bargaining Units 2, 7, 8, 16, 17, 18, and 19, and excluded employees are in Consolidated Benefits (CoBen). Eligible employees in CoBen pay the total dental premium with their CoBen benefit allowance amount. For employees enrolled in the DeltaPremier or DPO plans, the increased premium amount will be deducted from their monthly CoBen allowance on their January 1, 2003, pay warrants (December 2002 pay period). See page 8 for information on increased CoBen allowances for 2003. Reminder: For employees in CoBen, the State share and employee share does not apply. Therefore, when you complete their dental forms, use the total premium amount as the amount deducted from their CoBen allowance. The following charts show Delta's new premiums that go into effect January 1, 2003. DeltaPremier Basic Plan for Represented Employees: Coverage 2003 State Employee 2003 Rate Total Share Share Increase Premium Employee only $40.82 $30.70 $10.12 $4.25 Employee plus $71.67 $55.60 $16.07 $7.20 one dependent Employee plus $103.84 $81.38 $22.46 $10.27 two or more dependents DeltaPremier Enhanced Plan for Excluded Employees: Coverage 2003 State Employee 2003 Rate Total Share Share Increase Premium Employee only $42.48 $32.36 $10.12 $4.41 Employee plus $84.22 $68.15 $16.07 $8.40 one dependent Employee plus $118.38 $95.92 $22.46 $11.66 two or more dependents DeltaPreferred Option (DPO) for Excluded and Represented Employees: Coverage 2003 State Employee 2003 Rate Total Share Share Increase Premium Employee only $34.33 $30.70 $3.63 $3.63 Employee plus $66.91 $55.60 $11.31 $6.74 one dependent Employee plus $100.77 $81.38 $19.39 $9.98 two or more dependents Prepaid Dental Plans Prepaid dental plan premiums will increase, effective January 1, 2003. However, the State will continue to pay 100 percent of the premium; there is no employee copayment. Attachments III and IV reflect the new premiums for prepaid plans. Employees in Units 5 and 6 should be advised to contact their Benefit Trust for information regarding their dental premiums and benefits. Rates for their union- sponsored plans are listed on Attachment III. Evidence of Coverage (EOC) Booklets, Participating Dentist Lists, and Membership Cards You may want to request from the carriers a small supply of EOC booklets and participating dentist lists to have available in your Personnel Office for employees who request them. Advise employees in Units 5 and 6 to contact their Benefit Trust for information on claim forms, EOCs, participating dentist lists, or membership cards. FLEXELECT Employees who enroll in any FlexElect option or CoBen Cash during the open enrollment period and employees who are automatically reenrolled in the Cash Option have until December 31, 2002, to cancel their enrollment or make changes. January 10, 2003, is the last day for receipt by SCO of FlexElect and CoBen Cash forms reflecting cancellation and changes. The effective date will be retroactive to January 1, 2003. We'll send you copies of the 2003 FlexElect handbook (if you submitted an order to us) and Administrative Manual prior to the start of open enrollment. You also should refer to BAM Section 700 for information regarding FlexElect and processing instructions for open enrollment forms. DPA will mail Open Enrollment notification to homes of employees enrolled in the 2002 FlexElect Cash Option informing them that they will automatically be reenrolled for the 2003 Plan Year. We will notify Permanent Intermittent employees currently enrolled in the FlexElect Cash Option that they must reenroll during open enrollment if they want to receive the cash option next year. We also will mail postcard reminders to employees currently enrolled in a FlexElect Reimbursement Account. These postcards explain that they must reenroll during open enrollment if they want to participate in a reimbursement account in 2003. As in the past, DPA will send your Personnel Office a list of employees in your department who are enrolled in a 2002 FlexElect Reimbursement Account. Where possible, we will mail the listing to the appropriate field office. DPA has revised the FlexElect enrollment forms (Cash Option Enrollment Authorization - STD. 701C rev. 4/2002, and Reimbursement Account Enrollment Authorization - STD. 701R rev. 5/2002.) They're included in the 2003 FlexElect handbook. You also may order the revised forms through the Department of General Services, Office of State Publishing. We will provide information at a later date regarding when SCO will no longer accept the STD. 701C (Rev. 4-2000) and STD. 701R (Rev. 5-94). Until such time, departments may continue to use their current supply of forms. CONSOLIDATED BENEFITS (COBEN) All excluded employees and represented employees in Bargaining Units 2, 7, 8, 16, 17, 18, and 19 are in CoBen. Monthly CoBen allowance amounts will increase effective January 1, 2003. The new amounts for 2003 are listed below: Coverage Coben Allowance - 2003 Represented Excluded Employee only $266 $267 Employee plus one dependent $515 $528 Employee plus two or more dependents $679 $694 DPA will mail an Open Enrollment notification this month to the homes of all employees enrolled in the 2002 CoBen Cash Option informing them that they will be automatically re-enrolled for the 2003 Plan Year. We will also notify Permanent Intermittent employees who are currently enrolled in the CoBen Cash Option that they must reenroll during open enrollment if they wish to receive the Cash Option for next year. We will mail the CoBen handbooks in early August to departments that submitted an order form to DPA. PERSONNEL OFFICES Your assistance in the following areas will be appreciated and will help make this open enrollment period successful: (1) Provide a copy of the attached open enrollment letter to all employees; (2) Make Dental, FlexElect, and CoBen Program material available or advise employees how to obtain such material; (3) Assist employees in completing enrollment/change documents; (4) Review and submit enrollment documents by the due dates listed in this memo; (5) Send completed enrollment forms and packages to SCO. If your employees have questions regarding open enrollment for the Dental, FlexElect, and CoBen Programs please handle them in your Personnel Office. If you need assistance or clarification, call Bryan Bruno, Benefits Program Analyst, at (916) 445-9841 or CALNET 485-9841. Terri Westbrook, Chief Benefits Division cc: SCO, Butch Massoni/Bob Curry/Don Ward CALPERS, Doug Mckeever JRS/LRS, Rae Gamble STRS, Pat Sidhu CAHP BENEFIT TRUST, Kim Bamford CCPOA BENEFIT TRUST, Gerrit Buddingh Attachments will be distributed via mail.