There have been several changes to the Health Plan since the January 1, 1999 booklet was released. This notice summarizes the changes and supercedes provisions described in that booklet. To help you use this brochure in conjunction with your health plan booklet, the corresponding pages of the booklet are noted with each benefit change.
Changes Effective January 1, 2002
Minimum Earnings For Health Coverage Increased (Booklet page 10)
For coverage beginning in 2002, the minimum earnings required to qualify for Health Plan eligibility increased from $26,100 to $26,900.
Prescription Drug Changes (Booklet page 43)
Effective January 1, 2002, the amount you pay for prescription drugs will increase to the amounts shown in the chart below.
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New Prescription Drug Co-Payments Effective January 1, 2002 (This replaces the chart on page 43 of the January 1, 1999 Health Plan Booklet) |
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| Generic | Brand Name | |
| At an ExpressScripts participating pharmacy -- up to 30-day supply | $5 | $12 |
| Through the Mail Order program -- up to 90-day supply | $10 | $24 |
As prescription drug costs have risen dramatically in recent years, the co-payment has remained the same since January 1, 1998. While we regret having to increase the drug cost to you, we feel the dollar amounts of the co-payments continue to provide an extremely rich and valuable benefit. We also hope that these new rates will encourage you to consider the savings to you and the Plan by using generic drugs or trying the mail order plan.
Purchasing your prescription drugs has not changed. You should use an ExpressScripts participating pharmacy or ExpressScripts' mail order program in the same manner as before.
Brand Name Prescription Change
If you request a brand medication when a generic equivalent is available and your doctor has not indicated "dispense as written", you will be responsible for paying the brand co-pay ($12 at the pharmacy) plus the difference in cost between the brand and generic medication. Of course, if your physician prescribes a brand name and does not want a generic substitution, you will be responsible only for the brand name co-pay.
Carry-Over Credit Changes (Booklet pages 11 and 12)
- The earnings requirement for contributions to be held in a Participant's "Carry-Over Account" will increase from $73,600 to $85,000 effective January 1, 2002. Accordingly, the annual contribution amounts increase from $5,150 to $5,950. The Plan's carry-over provision allows that contributions received on earnings in excess of the $85,000 amount will be held in a Carry-Over Account to meet your contribution requirement over the next three years. This change does not affect any provision of the carry-over rules, except for the amounts.
- The minimum requirement for a Participant to accrue a "Retiree Carry-Over Credit" has also increased, as the amount is defined as two times the minimum carry-over contribution amount described in item 1., above. Accordingly, a Participant must have $11,900 of contributions in a year (equivalent to $170,000 of earnings) in order to earn one Retiree Carry-Over Credit. This change does not affect any provision of the carry-over rules, except for the amounts.
Self-Pay Contribution Credit Changes (Booklet page 13)
The Plan provision that offsets self-pay premiums by the amount of contributions received has been eliminated. Participants who are on one of the self-pay plans as of December 31, 2001 and have unused Contribution Credit will be permitted to utilize their remaining balance of such Contribution Credits earned prior to 2002.
