The Empire Plan and HMO premium rates for the year 2003 have been approved. Click here for the rates.  Empire Plan premiums are adjusted annually based on plan experience. The PEF/NYS contract does not give PEF authority to negotiate premium rates. The Empire Plan premium rate increases are in line with or even below the rates of many other large employee health plans. Most plans will increase their rates 15 to 20 percent next year. In comparison, California state employees will have to pay an average 25% increase for their health insurance.

The option transfer period will run through 12/31/02. If anyone is considering changing health plans they should consider their options now. New health plan options will begin on 12/26/02 for Institution Payroll employees and on 12/31/02 for Administration Lag-Payroll employees.

The Rates & Deadlines for 2003 flyer will be mailed directly to employees' homes during the week of 12/2/02. In the meantime, members can get option transfer information including the rates from their agency health benefits administrator, who is usually located in the Personnel Office. This information will also be available through the Department of Civil Service web site at www.cs.state.ny.us. Click on Employee Benefits, then click on Option Transfer Information for 2003. Employees can download, print and complete the ps-404 form required to change health plan options, then bring it to their HBA for processing on or before 12/31/02. 

For the first time in 2003 all NYS employees will have the same biweekly premium deductions. In previous years CSEA, NYSCOPBA, Council 82, DC 37 and PIA, whose members did not have to contribute toward prescription drug premiums, had lower biweekly deductions. Because of the change in 2003, those employees will see their premiums increase 66% for individual enrollees and 54% for family enrollees, compared with premiums they paid in 2002. 

Eight HMOs have biweekly premium deductions over $100 for a family enrollment; one HMO will have a biweekly deduction over $200. We ask that you remind members to check their health plan rates now to avoid an unpleasant surprise in their first bi-weekly paycheck with deductions for the new rates. Fortunately, there are several HMOs  whose rates are very competitive. 

Many HMO premiums will increase dramatically in 2002; eight HMOs will have biweekly premium deductions over $100 for a family enrollment. Please check your health plan rates now to avoid an unpleasant surprise in your first bi-weekly paycheck with deductions for the new rates. Fortunately, there also are five HMOs whose rates are decreasing.

Neither PEF nor the state has the authority to negotiate HMO rates, which are community rated. Community rating means all enrollees in an HMO are pooled and charged the same premium for the same benefits. The HMO premium cap limits the state's contribution to HMO premiums to an amount no greater than the cost of Empire Plan hospital/medical/mental health and substance abuse premiums. Any amount of HMO premium greater than the Empire Plan’s for these components must be paid in full by the enrollee.

During the month of November HMO enrollees received side by side comparisons illustrating benefit changes their HMOs will implement on January 1, 2002. PEF does not negotiate the level of benefits provided by each HMO. HMOs can change their benefits from year to year and many do.

Please share this information with other PEF members. Members who have questions about the rates may call Deborah Stayman or Lorraine Simpkins at 1-800-342-4306 or 518-785-1900 ext. 283.