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PEBTF Announces Health Plans for Commonwealth

The Pennsylvania Employees Benefit Trust Fund announced today that Aetna,Geisinger Health Plan and UPMC Health Plan have been selected to provide healthbenefits for retired

PEBTF Announces New Health Plans for Commonwealth Retirees

The Pennsylvania Employees Benefit Trust Fund announced today that Aetna,
Geisinger Health Plan and UPMC Health Plan have been selected to provide health
benefits for retired state employees, effective January 1, 2010. These changes
are being implemented because the plan that currently covers a majority of the
Medicare-eligible state retirees will be discontinued by its provider effective
December 31, 2009.

“We worked hard to ensure that retirees retain comparable benefits to what they
have now,” said Kathryn Farley, executive director of the Pennsylvania Employees
Benefit Trust Fund which administers retiree health benefits on the
commonwealth`s behalf. “Every retiree will have two plans to choose from, one
that offers the lowest possible out-of-pocket costs and one that offers the
greatest possible flexibility in health care providers.”

From October 19 - November 13, retirees will be able to choose between a
Medicare preferred provider organization (PPO) or a Medicare health maintenance
organization (HMO) for future coverage. Plan benefits will be consistent across
the state but companies that provide coverage will vary based on region.

“We are pleased by the outcome of the competitive bid,” Farley said. “These
companies meet our high standards and, of course, there will be no lapse in
coverage for any retiree.” Farley also noted that retirees will continue to pay
the same share of their health plans` premiums.

Accompanying the change in health plan options is a consolidation of retirees`
prescription drug benefits. After January 1, 2010, retirees will be covered by
the same provider as active state employees.

“Change of this magnitude can be confusing,” said Naomi Wyatt, the
commonwealth`s Secretary of Administration. “Pennsylvania is committed to
keeping high-quality benefits for our retired public servants. We`ll be doing
everything we can to share timely, accurate information so retirees can make
informed decisions.”

Wyatt said that the commonwealth will hold informational meetings around the
state over the next several weeks. These meetings will discuss the reasons for
the change, the differences between PPOs and HMOs and how these plans intersect
with Medicare. The sessions are in addition to dozens of open enrollment
meetings to be held later in the fall.

Commonwealth retirees are encouraged to participate and to extend invitations to
those who help them make health-care-related decisions:

* Harrisburg - Thursday, September 10 - Farm Show Complex
* Philadelphia - Friday, September 18 - Convention Center
* Wilkes-Barre - Monday, September 21 - Woodlands Inn & Resort
* Monroeville - Wednesday, September 23 - Convention Center

There are three meetings at each location: 8:30 am, 11:00 am, and 2:00 pm. The
same information will be covered at each session. No reservations are necessary.

Coventry Health care, currently the largest provider of health benefits for
commonwealth retirees, announced on April 30 that it would discontinue its
fee-for-service offering effective January 1, 2010. It cited changing Medicare
rules as part the basis for its decision.

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PEBTF Announces Health Plans for Commonwealth
PEBTF Announces Health Plans for Commonwealth

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