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CVS TRANSITION UNDERWAY

GIC UniCare Enrollees Impacted

JULY 2010 VOICE: As members are now aware, the state-run Group Insurance Commission (GIC) has contracted with CVS Caremark as the state's new pharmacy benefits manager (PBM) for the GIC's UniCare insurance plans. The new pharmacy plan begins on July 1, 2010 for those insured under the state-run GIC only.

CVS Caremark replaces Express Scripts, which had held the contract since 2000. With roughly 90% of those retirees insured by the GIC participating in one of the four plans provided by UniCare, this change in pharmacy providers impacts tens of thousands members.

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CVS NEW STATE PHARMACY VENDOR

MAY 2010 VOICE: In a move that impacts tens of thousands of retirees, the state's Group Insurance Commission (GIC) has chosen CVS Caremark as the state's new pharmacy benefits manager. The Rhode Island based CVS replaces Express Scripts, which had been the state vendor since 2000.

GIC officials chose a new pharmacy vendor following an exhaustive RFP process, where CVS Caremark scored the highest marks. Not only did CVS score well on price, the Commission believes that the company is poised to deliver superior service and value to retirees and employees.

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STATE GIC RATES RISE FOR FY11

NINETEEN PLANS AVERAGE 7.9%, WITH OME AT LESS THAN 3%

MAY 2010 VOICE: At its March rate-setting meeting, the state's Group Insurance Commission (GIC) approved new insurance premiums for FY2011, that will increase the popular Optional Medicare Extension (OME) Plan by 2.9%. Premiums across the six Medicare supplement plans increased an average of 4.03%.

With the average insurance premium in Massachusetts increasing over 10% in 2010 (some small business plans up 50%), GIC rates continue to trend well below average. Rates across all GIC sponsored plans, as a whole, will increase an average 7.9%. Non-Medicare retirees, enrolled in the UniCare State Indemnity Plan, will face a 5.1% increase.

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GIC RAISES RETIRED TEACHER PREMIUM

Impacts Those In Special State Program

MARCH 2010 VOICE: For the past forty years, a little known state law has allowed municipalities to insure their retired teachers under the state's Group Insurance Commission (GIC) health plans by local option.

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MAYORS WANT CONTROL OVER INSURANCE PLANS
MARCH 2010 VOICE: Amidst a staggering multi-billion dollar state budget deficit and tightened local budgets, municipal leaders are seeking dramatic changes to long-standing health insurance laws.
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WINDFALL FOR GIC TOWNS BUT NOT RETIREES
MARCH 2010 VOICE: Municipalities, that belong to the GIC, have received a windfall because of the program's increased copayments and deductibles. With these increases in retirees' out-of-pocket expenses, there has been a corresponding decrease in the monthly premiums for non-Medicare plans.
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RISING OUT-OF-POCKET COSTS CAUSE CONCERN

Health Care Protections Sought

MARCH 2010 VOICE: There is growing concern, shared by Association and public officials alike, that recent increases in copayments and deductibles may place a severe financial hardship on retirees who suffer from chronic medical conditions.

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