State of California M E M O R A N D U M REFERENCE CODE: 2003-037 DATE: September 26, 2003 TO: Personnel Officers Personnel Transactions Supervisors Personnel Transactions Staff FROM: Department of Personnel Administration Benefits Division SUBJECT: 2003 Open Enrollment Period for Dental, FlexElect, and Consolidated Benefits (CoBen) Programs, 2004 Dental Plan Premiums, and Cancellation of GE Wellness Dental Plan Contract (Correction to PML 2003-037 - Employee only Excluded CoBen Allowance) CONTACT: Bryan Bruno, Benefits Program Analyst (916) 445-9841, CALNET 485-9841 FAX: (916) 322-3769 Email: BryanBruno@DPA.CA.GOV Here's important information on the 2003 Open Enrollment Period for the Dental, FlexElect, and CoBen Programs, 2004 dental plan premiums, and cancellation of the GE Wellness Dental Plan (GE) contract. Please make sure your employees know about the open enrollment period and the information in this memo. DPA mailed dental open enrollment information to retirees and annuitants in September 2003. Important Note: Effective January 1, 2004, DPA will no longer contract with the GE Wellness Dental Plan. To ensure continued dental coverage, participants currently enrolled in GE will be automatically enrolled in the SafeGuard dental plan effective January 1, 2004. If participants do not wish to be enrolled in SafeGuard, they may choose another dental plan during the open enrollment period. For your information a copy of the letter (Attachment I) which was sent by DPA to all current GE enrollees is attached. We've also attached memos for you to distribute to your employees. Attachment II covers enrollment in all benefit plans. Attachment III focuses on employees' dental plan options and cost comparisons. Attachments IV & V list 2004 premiums. Attachment I - Letter to All GE Enrollees Attachment II - Memorandum to All State Employees Attachment III - Dental Plan Options and Cost Comparison Attachment IV - 2004 Dental Plan Premium Rates Attachment V - 2004 COBRA Group Continuation Rates OPEN ENROLLMENT Open Enrollment for Dental, FlexElect, and CoBen will be October 1, 2003, through October 31, 2003. Enrollments/changes during this period are effective January 1, 2004. 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 re-enroll in the FlexElect/CoBen 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 re- enroll during open enrollment. Completing the Open Enrollment Documents Use the following information to complete open enrollment forms: Permitting Event Date: Dental 10/1/03 FlexElect/CoBen Cash Leave blank Effective Date: 1/1/04 (Dental, FlexElect, CoBen Cash) Permitting Event Codes: Dental 03 New Enrollment 15 Add/Delete Dependent(s) (May use one form for this type of transaction) 28 Change of Plan 29 Change of Plan and Add/Delete Dependent(s) (May use one form for this type of transaction) FlexElect/CoBen Leave Permitting Event Code blank Deadlines: 10/31/03 - Last day for employees to sign and submit open enrollment documents to Personnel Offices. 11/5/03 - Last day for enrollment documents to be received in employing office as shown on enrollment forms). 11/19/03 - Last day for receipt by the State Controller's Office (SCO) of all open enrollment documents from Personnel Offices. 12/5/03 - 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 1/1/04 paycheck. DENTAL PROGRAM DPA contracts with Delta Dental, Health Net Dental, PMI, and SafeGuard to provide dental insurance for eligible: 1. represented employees in all Bargaining Units except Units 5 and 6; 2. excluded employees; 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: 1. employees in Bargaining Units 2, 7, 8, 16, 17, 18, and 19; 2. excluded employees; and 3. 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 plan, Western Dental, must complete 12 months in the prepaid plan before they are allowed to enroll in the union-sponsored indemnity dental plan, Primary Dental. 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 of 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 union-sponsored 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 of the open enrollment period. Delta Dental 2004 Premiums Delta Dental premiums will increase for the DeltaPremier and DeltaPreferred Option (DPO) dental plans effective January 1, 2004. 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, 2004, pay warrants (December 2003 pay period). The State's share of the premium will also increase. 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 CoBen. Employees in CoBen pay the total dental premium with their CoBen benefit allowance. For employees enrolled in the DeltaPremier or DPO plans, the increased premium will be deducted from their monthly CoBen allowance on their January 1, 2004, pay warrants (December 2003 pay period). See pages 7 and 8 for information on 2004 CoBen allowances. Reminder: For employees in CoBen, the State share and employee share do 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 dental premiums that go into effect January 1, 2004. DeltaPremier Basic Plan for Represented Employees: 2004 Total Premium Employee only $45.45 Employee plus one dependent $79.98 Employee plus two or more dependents $115.99 State Share Employee only $34.09 Employee plus one dependent $59.98 Employee plus two or more dependents $86.99 Employee Share Employee only $11.36 Employee plus one dependent $20.00 Employee plus two or more dependents $29.00 Employee Share Increase Employee only $1.24 Employee plus one dependent $3.93 Employee plus two or more dependents $6.54 DeltaPremier Enhanced Plan for Excluded Employees: 2004 Total Premium Employee only $47.31 Employee plus one dependent $94.03 Employee plus two or more dependents $132.27 DeltaPreferred Option (DPO) for Excluded and Represented Employees: 2004 Total Premium Employee only $39.89 Employee plus one dependent $78.17 Employee plus two or more dependents $117.94 State Share Employee only $29.92 Employee plus one dependent $58.63 Employee plus two or more dependents $88.45 Employee Share Employee only $9.97 Employee plus one dependent $19.54 Employee plus two or more dependents $29.49 Employee Share Increase Employee only $6.34 Employee plus one dependent $8.23 Employee plus two or more dependents $10.10 Prepaid Dental Plans The SafeGuard premiums will decrease slightly and the Health Net Dental premiums will remain at the 2003 rate. The PMI dental plan premiums will increase, effective January 1, 2004. The 2004 premiums for the prepaid plans will continue to be fully paid by the State. 2004 Dental Premiums Attachments IV and V list the 2004 premiums. Employees in Units 5 and 6 should be advised to contact their Benefit Trust for information regarding their union-sponsored dental plan premiums and benefits. Evidence of Coverage (EOC) Booklets, Participating Dentist Lists, and Membership Cards You may want to request, from the dental plans, 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 and COBEN CASH Employees who enroll in any FlexElect Option or CoBen Cash during the open enrollment period and employees who are automatically re-enrolled in FlexElect/CoBen Cash Option have until December 31, 2003, to cancel their enrollment or make changes. January 9, 2004, 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, 2004. Copies of the 2004 FlexElect handbook (if you submitted an order form to us) and Administrative Manual have been mailed to departments. You also should refer to Benefits Administration Manual Section 700 for information regarding FlexElect and processing instructions for open enrollment forms. DPA recently mailed an open enrollment notification to the homes of all employees enrolled in the 2003 FlexElect Cash Option informing them that they will automatically be re-enrolled for the 2004 Plan Year. We also notified P.I. employees currently enrolled in the FlexElect Cash Option that they must re-enroll during open enrollment if they want to receive the cash option next year. We also mailed postcard reminders to employees currently enrolled in a FlexElect Reimbursement Account. These postcards explain that they must re-enroll during open enrollment if they want to participate in a reimbursement account in 2004. As in the past, DPA sent your Personnel Office a list of employees in your department who are enrolled in a 2003 FlexElect Reimbursement Account. Where possible, we mailed the listing to the appropriate field office. CONSOLIDATED BENEFITS (COBEN) All excluded employees and represented employees in Bargaining Units 2, 7, 8, 16, 17, 18, and 19 are in CoBen. Represented Employee CoBen Allowance The CoBen allowance for represented employees is determined through collective bargaining. Units 8, 16, 17 and 19 have agreed to the 2004 rates. The State and Unit 7 have also reached agreement on the new 2004 CoBen allowances. However, the Unit 7 agreement has not been ratified by the Legislature. As of this date, Units 2 and 18 have not reached agreements for the new 2004 CoBen allowances. 2003 Employee only $266 Employee plus one dependent $515 Employee plus two or more dependents $679 2004 Employee only $300 Employee plus one dependent $582 Employee plus two or more dependents $756 Excluded Employee CoBen Allowance 2003 Employee only $267 Employee plus one dependent $528 Employee plus two or more dependents $694 2004 Employee only $302 Employee plus one dependent $593 Employee plus two or more dependents $768 The CoBen allowance for excluded employees is determined by the Department of Personnel Administration. All excluded employees will receive the 2004 CoBen allowance. DPA recently mailed an open enrollment notification to the homes of all employees enrolled in the 2003 CoBen Cash Option informing them that they will be automatically re-enrolled for the 2004 Plan Year. We also notified Permanent Intermittent employees who are currently enrolled in the CoBen Cash Option that they must re-enroll during open enrollment if they wish to receive the Cash Option for next year. Employees who enroll in CoBen Cash during the open enrollment period and employees who are automatically re- enrolled in the Cash Option have until December 31, 2003, to cancel their enrollment or make changes. We will mail the CoBen handbooks beginning the first week of October 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 memorandum to all employees (Attachment II); (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, Ann Woodward JRS/LRS, Rae Gamble STRS, Tosha Bernatene CAHP BENEFIT TRUST, Kim Bamford CCPOA BENEFIT TRUST, Gerrit Buddingh