State of California M E M O R A N D U M REFERENCE CODE: 98-037 DATE: August 14, 1998 TO: Personnel Officers Personnel Transactions Supervisors Personnel Transactions Staff FROM: Department of Personnel Administration Benefits Division SUBJECT: 1998 Dental and FlexElect Open Enrollment Period and COBRA Information and Premium Rate Charts CONTACT: Nicolas Villa Jr., Benefits Program Analyst (916) 324-0525, CALNET 454-0525 FAX: (916) 322-3769 OFFICE VISION: DPA(NXVILLA) INTERNET: NickVilla@.DPA.CA.GOV This memorandum contains important information regarding the 1998 Dental and FlexElect Open Enrollment Period which is scheduled for September 1 through October 15, 1998. Please ensure that employees are made aware of the open enrollment period and provided assistance and necessary forms should they wish to enroll or make any changes to their dental and/or FlexElect enrollment. State retirees/annuitants will receive dental open enrollment information during August from Department of Personnel Administration (DPA) at their residence. DENTAL PROGRAM ADMINISTRATIVE INFORMATION DPA currently contracts with Delta Dental (Delta), DentiCare of California, Inc., Private Medical Care, Inc. (PMI), Safeguard Health Plan and SmileSaver to provide dental insurance for: (1) excluded employees; (2) represented employees in Bargaining Units 1 through 21; and (3) retirees/annuitants. Exception: Bargaining Units 6 and 13 provide dental insurance to their members through their respective union-sponsored benefit trusts. Unit 5 offers their own indemnity dental plan, but their members may elect to enroll in the State-sponsored prepaid plans. DENTAL OPEN ENROLLMENT Open enrollment for dental benefits will be held from September 1, 1998 through October 15, 1998. All actions taken during this open enrollment period will become effective January 1, 1999. Eligible employees may enroll, change plans, and add/delete dependents during this period. No action is necessary for those employees who are currently enrolled and do not wish to make any changes in their dental coverage. STATE-SPONSORED DENTAL PLAN 1999 PREMIUMS AND PROGRAM INFORMATION At this time there will be no increase for 1999 in the copay amount employees pay each month for their Delta Dental coverage. The State contribution for the prepaid plans continues to be 100 percent paid with no premium copay cost to those employees enrolled in a prepaid plan. Employees in Units 5, 6, and 13 should be advised to contact their Benefit Trust regarding information on 1999 dental premium rates. The Benefits Administration Manual (BAM) Section 500 contains a variety of information regarding the State Dental Program. It is important that this BAM Section, the information contained in this memorandum and the attachments listed below are thoroughly reviewed: Attachment I - Description of State-sponsored Dental Plans Attachment II - Dental Plans - Employee Cost Comparison Chart Attachment III - 1999 Dental Plan Premium Rates Attachment IV - 1999 COBRA Group Continuation Rates FLEXELECT OPEN ENROLLMENT In conjuction with the dental open enrollment period, the FlexElect open enrollment period for the 1999 FlexElect Plan year is September 1, 1998 through October 15, 1998. The Benefits Administration Manual (BAM) Section 700 contains a variety of information regarding the State FlexElect Program. Refer to DPA, PML 98-024 dated June 11, 1998, for information regarding ordering 1999 FlexElect Plan Year brochures. A notification will be mailed in August to the home of all employees currently enrolled in the 1998 Cash Option informing them that they will be automatically re- enrolled for the 1999 Plan Year. Permanent-Intermittent employees who are required to re-enroll in the Cash Option each year will also receive a notification highlighting their enrollment requirements. Postcard reminders will also be sent to employees currently enrolled in a 1998 FlexElect Reimbursement Account. In addition, a global message will be printed on the bottom of the August pay period warrants regarding the open enrollment period. CONSOLIDATED BENEFITS (COBEN) INFORMATION Effective July 1, 1998, all Bargaining Unit 16 employees, who are represented by the Union of American Physicians and Dentists, were enrolled in CoBen as the result of the union's ratified memorandum of understanding. CoBen, which is being offered as part of the State's FlexElect Program, improves the way the State contributes towards an employee's health, dental, and vision benefits. It allows employees to offset their total benefit costs by choosing a lower cost health and/or dental plan. Under CoBen, the State will provide one "combined" employer contribution amount (benefit allowance) for employees' health, dental, and vision benefits. From this benefit allowance the full premium cost for the health, dental, and vision plans employees are enrolled in will be deducted. Effective January 1, 1999, all Bargaining Unit 19 (BU 19) and excluded employees will also be transitioned into CoBen. In early September, DPA will provide information regarding the CoBen program to BU 19 and excluded employees, as well as CoBen procedural information to all departments. DOCUMENT COMPLETION Specific open enrollment information regarding permitting event date, effective date, permitting event codes, and cutoff dates for submission of documents to State Controller's Office (SCO) is provided below: PERMITTING EVENT DATE: Dental - 9/1/98 FlexElect Leave blank EFFECTIVE DATE: 1/1/99 (Dental and FlexElect) PERMITTING EVENT CODES: Dental 03 New Enrollment 15 Add/Delete Dependent(s) may use one form 28 Change of Plan 29 Change of Plan and Add/Delete Dependent(s) - may use one form FlexElect Leave Permitting Event Code blank. Cut-off Dates for Submission of Dental and FlexElect Documents: 10/15/98 -Last day for open enrollment documents to be signed and submitted to Personnel by employees. 11/4/98 -Last day for receipt by SCO of all open enrollment documents. 12/4/98 -Last day for receipt by SCO of any open enrollment documents that were returned to departments for correction. DELTA DENTAL RESTRICTION Represented employees, who are restricted to a State- sponsored prepaid dental plan until they have completed 24 months of State service, will not be allowed to enroll or change to the indemnity Delta Dental Plan during this open enrollment period. At the end of their 24-month restriction period, these employees will have 60 days to elect or change to the Delta Dental Plan, should they wish to do so. CCPOA FEE-FOR-SERVICE DENTAL PLAN RESTRICTION Bargaining Unit 6 (R06) employees, who are restricted to the union-sponsored prepaid Western Dental Plan until they have completed 12 months of State service, will not be allowed to change to the indemnity Fee-For-Service Dental Plan during this open enrollment period. At the end of their 12-month restriction period, these employees will have 60 days to change to the Fee-For-Service Dental Plan, should they wish to do so. CAHP BLUE CROSS DENTAL PLAN RESTRICTION Bargaining Unit 5 (R05) employees, who are restricted to a State-sponsored prepaid dental plan until they have completed 24-months of State service, will not be allowed to change to the indemnity Blue Cross Dental Plan during this open enrollment period. At the end of their 24- month restriction period, these employees will have 60 days to change to the Blue Cross Dental Plan, should they wish to do so. DENTAL CLAIM FORMS, EVIDENCE OF COVERAGE (EOC) BOOKLETS, PARTICIPATING DENTIST LISTS AND MEMBERSHIP CARDS Claim forms are not required by DentiCare, PMI, Safeguard, or SmileSaver. Delta Dental claim forms are available at most dental offices or Delta Dental. Although the Personnel Office should maintain a small supply of EOC booklets and participating dentist lists, employees should contact the dental carriers directly for additional booklets and/or information. Membership cards (if appropriate) will be mailed by the carrier(s) after open enrollment. Employees in Units 5, 6, and 13 should be advised to contact their Benefit Trust regarding information on claim forms, EOC's, dentist lists, or membership cards. COBRA PROGRAM INFORMATION The SmileSaver Dental Plan, a new State-sponsored prepaid dental plan has contracted with CobraPro to handle COBRA enrollments. The Std. 692, which is used to enroll employees and/or eligible dependents in the SmileSaver COBRA Program, should be sent to CobraPro. Please refer to Attachment IV for the address of CobraPro. Effective September 1, 1998, all Delta Dental COBRA enrollments and payments will be handled by Preferred Benefit Insurance Administrators, Inc. In addition, the Delta Dental Notification Election Form will no longer be used for Delta Dental COBRA enrollments. Effective September 1, 1998 the STD. 692 will be used for Delta Dental COBRA enrollments. For more information, please refer to our memo dated July 27, 1998 from DPA Benefits Division to Personnel Transactions Supervisors. PERSONNEL OFFICE Your assistance in the following areas will be appreciated and will help make this open enrollment period successful: (1) inform all employees of the open enrollment period, (2) make appropriate Dental and FlexElect Program material available or advise employees how to obtain such material, (3) assist employees in completing enrollment documents, and (4) review and submit enrollment documents by the due dates described in this memo. QUESTIONS REGARDING DENTAL AND FLEXELECT OPEN ENROLLMENT Employees should be directed to contact their departmental Personnel Office if they have any questions regarding the Dental and FlexElect Open Enrollment Period. Personnel Office staff requiring assistance or clarification of the information contained in this memo should call Nicolas Villa Jr., Benefits Program Analyst, at (916) 324-0525 or CalNet 454-0525. Kathie Vaughn, Chief Benefits Division cc:SCO, Butch Massoni/Don Ward/Del Delgado/Sandra Young CALPERS, Lura Franzella STRS, Pat Sidhu Fairs and Expositions CAHP DENTAL TRUST, Terri Westbrook CCPOA DENTAL TRUST, Lou Ohls Attachments will be distributed via mail.