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SEPTEMBER 1999 - Retirees To Switch Plans - When you as a member sign up for membership in an HMO, remember - there is no surefire guarantee that the HMO will still be in business a few years down the road.

Case in point: Members living in central or Western Mass. who are enrolled in a Kaiser Permanente health plan were recently shocked to hear that their coverage in the plan will end on December 31, 1999.

Kaiser's June announcement that they would no longer be doing business in the Northeast left retirees from New York to Maine scrambling to find a new insurance plan. Under the plan run through the state's Group Insurance Commission, 1,205 retirees and 4,353 active employees are currently enrolled in Kaiser.

Thankfully, the GIC is pulling out all stops to assure that Kaiser members will be transferred to another plan by the year's end. Local officials are also making plans to transfer their retirees.

State and local insurance officials have said that members should not panic, no one is losing their insurance. Open enrollment periods will be available in the fall so that members can pick a new insurance carrier. Written notification will be provided to each retiree and employee who is affected by the change.

GIC officials plan to hold two health fairs in western Mass. to assist members in joining a new health plan. Open enrollment for members enrolled through the GIC will take place from September 27-October 15. Affected members will receive detailed notification from the GIC in early September.

The loss of Kaiser will impact lesser numbers of local government retirees in Western Mass. Don Teres, human resources director for Northampton, says that 32 of that city's retirees will be affected.
"Although our open enrollment period was last May, the Kaiser enrollees will probably be given an opportunity to join our Managed Blue Senior Plan," said Teres. "We're working on it now. We don't want anyone to lose their coverage."

"The Association has been receiving lots of phone calls from upset members. No one, including the state, had any idea this was going to happen," explains Association Insurance Coordinator Cheryl Stillman. "The important thing is that no members will lose their insurance coverage. When picking the new plan, members should take a good look at the indemnity plans. They are a little more expensive, but you get what you pay for."
 
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