Office of Administration Announces Plan to Preserve Health Care Benefits for Current, Future Retired Commonwealth... (on average will not increase retirees'ou...)

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Office of Administration Announces Plan to Preserve Health Care Benefits for Current, Future Retired Commonwealth Employees

Date:9/28/2007

on average, will not increase retirees' out-of-pocket expenses. This plan offers retirees a major benefit in that they will have only one insurance card and will no longer need to submit claims when they see a participating provider, resulting in less paperwork. Retirees will keep the option of enrolling in a Medicare health maintenance organization (HMO) or preferred provider organization (PPO). The only change for non-Medicare health care coverage will be a modest $10 co-payment increase for specialist visits and a $25 increase for emergency room visits.

"There will be no increases in retiree premium shares and retirees will continue to receive generous and competitive medical and prescription drug coverage," Wyatt said. "That is our commitment to retirees for the years of loyal service they provided to the commonwealth."

All affected retirees will receive health benefit plan details in the mail next week and information briefings will be held across the commonwealth to directly assist retirees in understanding the changes. Additional information for retirees is available online at: http://www.state.pa.us/retireehealth.

EDITOR'S NOTE: Attached is the text of a letter sent today to the Pennsylvania Association of Retired State Employees (PARSE) and state employee union leaders that explains the details of the retiree health care benefit changes. Additional media materials are available online at http://www.state.pa.us/retireehealth.

September 28, 2007

Arthur Schwartz

President

Pennsylvania Association of Retired State Employees

State Association Office

2020 Yale Avenue

Camp Hill, Pennsylvania 17011-5456

Dear Mr. Schwartz:

Today we are announcing changes to the Retired Employees Health Program (REHP) that will preserve generous benefits for current retirees while re
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Office of Administration Announces Plan to Preserve Health Care Benefits for Current, Future Retired Commonwealth...(on average will not increase retirees'ou...),Health