June 4, 2003


ATTENTION: Personnel and Payroll Officers, Chief Administrative Officers, Business Managers
SUBJECT: 2003 - 2004 Employee Health Insurance Rates

INTRODUCTION: The state employee annual health insurance open enrollment effective July 1, 2003 was announced in Comptroller's Memorandum No. 2003-18, dated May 20, 2003. In that connection, this memorandum establishes health insurance rates and the effective payroll dates, and discusses enrollment procedures, payroll processes, and available health plan choices.


A. Medical Plans: For the 2003-2004 plan year, Anthem, ConnectiCare and Health Net will continue to offer Point of Service (POS), Point of Enrollment (POE), and Point of Enrollment-Gatekeeper (POE-G) plans. The medical benefits of all plans remain aligned and unchanged from last year. As the annual premium for all the medical and dental plans has increased, the corresponding employee premium share has also increased.

Effective July 1, 2003, Anthem Prescription (AP) will administer pharmacy benefits for all covered employees, retirees, and dependents, regardless of carrier. This change in pharmacy administration does not impact benefits or co-pays. Access will be affected in that all prescription drugs, including mail order, must be dispensed by pharmacies participating in the AP network on and after July 1, 2003. While the AP network exceeds the plan's access requirements, pharmacies previously available to Health Net and ConnectiCare members may or may not remain accessible. Accordingly, employees should be encouraged to familiarize themselves with the AP network of participating pharmacies. To implement this new approach to pharmacy benefit management, Health Net and ConnectiCare members will be issued an Anthem Prescription drug card and a pharmacy directory. New Anthem members will receive a single card reflecting their medical, dental and pharmacy coverage or dental and pharmacy coverage. Existing Anthem members with dental only will receive a new card reflecting their dental and pharmacy coverage. Existing Anthem members with medical and dental will continue to use their present card for medical, dental and pharmacy coverage.

B. Dental Plans: There are no benefit changes in the available plans. Anthem will continue to offer their Indemnity Dental Care Plan and the CIGNA Dental Care plan (a dental HMO) remains available.

PAYROLL EFFECTIVE DATES: The health insurance rates for the period from July 1, 2003 to June 30, 2004 have been modified to reflect changes necessitated by the implementation of CORE-CT Benefits Administration. As a function of these changes, health insurance premiums are being shifted from pre-payment to concurrent payment. Therefore, the changes announced herein will be effective in the following payroll periods:

Bi-Weekly: Semi-Monthly Monthly:
June 13 - June 26, 2003 June 16 - June 30, 2003 June 1 - June 30, 2003
Payable July 11, 2003 Payable June 30, 2003 Payable June 30, 2003

CHARTS: Attached are new and revised rates and charts "A" through "N" for use in bi-weekly payroll processing. Rate changes will be made centrally. Paired D/OEs for both pre and post-tax deductions are provided on all charts. (Rates and charts, as well as a detailed explanation of procedures for semi-monthly processing will be distributed separately to affected agencies.)

ENROLLMENT CONSIDERATIONS: Medical plan enrollment data will be transferred centrally to the Anthem Prescription plan based on information available from Health Net and ConnectiCare for the coverage month of June 2003. For any employee whose medical plan and/or coverage class change is effective on or after June 1, 2003, the agency must send a photocopy of the enrollment or carrier change form to Anthem, noting the current plan/class and new plan/class. This procedure is not necessary if the changes are confined to an Anthem plan.

PAYROLL PROCEDURES: For the bi-weekly payroll period from May 30 to June 12, 2003 (check date: June 27, 2003), all medical and dental rates will be set to $0.00 (zero) centrally. Agencies may continue to process prior period manual adjustments for health insurance during this period.

For the bi-weekly pay period from June 13 to June 26, 2003 (check date: July 11, 2003), all medical and dental rates will be updated centrally to new values. New D/OE's and Table Numbers for the Anthem Prescription plan will be added centrally for all employees enrolled in a medical plan. These table numbers will be based on the medical plan and coverage class that were in effect for check date June 13, 2003.

Agency personnel/payroll offices will continue to be responsible for the maintenance of all other health insurance changes for their employees. The corresponding Prescription Plan Table Numbers must be updated whenever an employee's medical plan and/or coverage class is changed.

As a result of this change, the payroll record of each employee enrolled in a non-domestic partner medical plan will have one employee share D/OE and table number, one state share D/OE and table number for a medical plan, and one state share D/OE for the corresponding prescription plan.

EMPLOYEES NOT ON PAYROLL: The attached charts are only for employees whose state share of the premium is processed through the MSA Payroll system. For employees who pay 100% of the premium by personal check, instructions will be issued under separate memorandum.


Domestic Partner Enrollment

  1. If an employee who has enrolled a domestic partner in their health plan prior to the 2003 open enrollment period requests a change to another carrier, the agency must send a copy of the Authorization Memo received from the Comptroller's Office to the new carrier, along with the enrollment form. If an employee is changing to another plan with the same carrier, agencies do not need to attach the Authorization Memo.
  2. Do not attempt to modify MSA health insurance entries for an employee who has an enrolled domestic partner. Contact the Comptroller's Payroll Services Division to make the necessary payroll changes for an employee who is changing plans and/or coverage class.
  3. Employees who wish to enroll their domestic partner during the 2003 open enrollment period must follow the procedures in Comptroller's Memorandum 2000-13. Coverage will be effective July 1, 2003, provided the Affidavit of Domestic Partnership was signed in April, May, or June 2003.

NOTICE TO EMPLOYEES: The health care planner mailed to employees enrolled in a medical or dental plan includes a schedule of all applicable bi-weekly payroll deductions, and a description of available options.

QUESTIONS: Personnel or payroll staff who may have questions concerning payroll related procedures should call the Comptroller's Payroll Services Division at (860) 702-3463. Questions regarding other health insurance issues should be directed to the Comptroller's Retirement & Benefit Services Division, Health Care Analysis Unit, at (860) 702-3535. Kindly refrain from directing employees to these telephone numbers.

Very truly yours,

Nancy Wyman
State Comptroller


Rate Charts A-N
Bi-Weekly Rates Based on 26 Pay Periods - 7/1/2003 - 6/30/2004

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