Columbus, Georgia

Memorandum



To: All Retirees and Direct Pay Participants



From: Tom Barron, Director



Date: October 31, 2005



Subject: Health Plan Changes



Human Resources Department

______________________________________________________________________________



Enclosed with this memorandum is a notice regarding the new Medicare

prescription drug program that is written in the language required by the

Centers for Medicare & Medicaid Services, also known as CMS. Because the

notice required by CMS may be difficult to fully understand, we want to tell

you in plain English what is going on with the City prescription drug benefit.

Also, Blue Cross will be making a couple of changes to the way they administer

the City health plan and we would like to explain those changes to you as well.



Starting with the City prescription drug benefit, the simple explanation is

that we are making no changes to the prescription plan at this time and current

participants that want to continue to participate in the City prescription plan

do not need to do anything. If you remain in the City prescription plan, the

enclosed Medicare notice is your proof that the City prescription plan provides

a benefit that is at least as good as the benefit being provided by Medicare.

The notice also permits enrollment in the Medicare prescription program at a

future date, should you choose to do so, without a penalty for late

enrollment. You should retain the Medicare notice but if the need arises in

the future, we will provide you with a replacement notice.



Blue Cross is also making two changes to the administration of our health plans

over the next several months. The first change will occur with the beginning

of the new plan year on January 1, 2006 and involves the application of the

$300 individual deductible for some plan members. Many of you may recall

receiving the memo to retirees from former City Manager Carmen Cavezza dated

June 15, 1999, advising that the deductibles for the PPO and Indemnity health

plans were increasing from $200 to $300 for individuals and from $400 to $600

for families. Blue Cross was also notified of this change but apparently

applied the change to some sub-groups and not to others. The only explanation

for this error we can come up with is the complex structure of our plan that is

divided into 87 sub-groups. I will tell you how we plan to simplify the health

plan later, but the main message here is that on January 1, 2006 all members

will be subject to the same application of the deductibles.



The final change will occur about April of 2006 when Blue Cross will reduce the

number of sub-groups to just 12. We believe that this change will simplify

plan administration for Blue Cross and reduce the likelihood of future

administrative errors. This change will result in a new ID card being issued

to members moved to a new sub-group.



If you have any questions about these changes, please call the Human Resources

Department at (706) 653-4059.



Important Notice from The Columbus Consolidated Government About Your

Prescription Drug Coverage and Medicare



Please read this notice carefully and keep it where you can find it. This

notice has information about your current prescription drug coverage with The

Columbus Consolidated Government (CCG) and new prescription drug coverage

available January 1, 2006 for people with Medicare. It also tells you where to

find more information to help you make decisions about your prescription drug

coverage.



1. Starting January 1, 2006, new Medicare prescription drug coverage will be

available to everyone with Medicare.



2. The CCG has determined that the prescription drug coverage offered by the

Retiree Health Plan is, on average for all plan participants, expected to pay

out as much as the standard Medicare prescription drug coverage will pay.



3. Read this notice carefully - it explains the options you have under Medicare

prescription drug coverage, and can help you decide whether or not you want to

enroll.



You may have heard about Medicare?s new prescription drug coverage, and

wondered how it would affect you. The CCG has determined that your prescription

drug coverage with the Retiree Health Plan is, on average for all plan

participants, expected to pay out as much as the standard Medicare prescription

drug coverage will pay.



Starting January 1, 2006, prescription drug coverage will be available to

everyone with Medicare through Medicare prescription drug plans. All Medicare

prescription drug plans will provide at least a standard level of coverage set

by Medicare. Some plans might also offer more coverage for a higher monthly

premium.



Because your existing coverage is on average at least as good as standard

Medicare prescription drug coverage, you can keep this coverage and not pay

extra if you later decide to enroll in Medicare coverage.



People with Medicare can enroll in a Medicare prescription drug plan from

November 15, 2005 through May 15, 2006. However, because you have existing

prescription drug coverage that, on average, is as good as Medicare coverage,

you can choose to join a Medicare prescription drug plan later. Each year after

that, you will have the opportunity to enroll in a Medicare prescription drug

plan between November 15th through December 31st.



If you do decide to enroll in a Medicare prescription drug plan and drop your

CCG prescription drug coverage, be aware that you will not be able to get this

coverage back.



If you drop your coverage with CCG and enroll in a Medicare prescription drug

plan, you will not be able to get this coverage back later. You should compare

your current coverage, including which drugs are covered, with the coverage and

cost of the plans offering Medicare prescription drug coverage in your area.



Your current health coverage pays for other health expenses, in addition to

prescription drugs, and you will still be eligible to receive all of you

current health and prescription drug benefits if you choose to enroll in a

Medicare prescription drug plan.



You should also know that if you drop or lose your coverage with the CCG and

don?t enroll in Medicare prescription drug coverage after your current coverage

ends, you may pay more to enroll in Medicare prescription drug coverage later.

If after May 15, 2006, you go 63 days or longer without prescription drug

coverage that?s at least as good as Medicare?s prescription drug coverage; your

monthly premium will go up at least 1% per month for every month after May 15,

2006 that you did not have that coverage. For example, if you go nineteen

months without coverage, your premium will always be at least 19% higher than

what most other people pay. You?ll have to pay this higher premium as long as

you have Medicare coverage. In addition, you may have to wait until next

November to enroll.



For more information about this notice or your current prescription drug

coverage?



Contact Human Resources for further information at (706) 653-4059. NOTE: You

may receive this notice at other times in the future such as before the next

period you can enroll in Medicare prescription drug coverage, and if this

coverage changes. You also may request a copy.



For more information about your options under Medicare prescription drug

coverage?



More detailed information about Medicare plans that offer prescription drug

coverage will be available in October 2005 in the ?Medicare & You 2006?

handbook. You?ll get a copy of the handbook in the mail from Medicare. You may

also be contacted directly by Medicare prescription drug plans. You can also

get more information about Medicare prescription drug plans from these places:



? Visit www.medicare.gov for personalized help,

? Call your State Health Insurance Assistance Program (see your copy of the

Medicare & You handbook for their telephone number)

? Call 1-800-MEDICARE (1-800-633-4227) for assistance. TTY users should call

1-877-486-2048. For people with limited income and resources, extra help

paying for a Medicare prescription drug plan is available. Information about

this extra help is available from the Social Security Administration (SSA). For

more information about this extra help, visit SSA online at

www.socialsecurity.gov, or call them at 1-800-772-1213 (TTY 1-800-325-0778).



Remember: Keep this notice. If you enroll in one of the new plans approved by

Medicare, which offer prescription drug coverage after May 15, 2006, you may

need to give a copy of this notice when you join to show that you are not

required to pay a higher premium amount.



Date: October 31, 2005

Name of Entity/Sender: Columbus Consolidated Government

Contact Office: Human Resources Department

Address: PO Box 1340, Columbus, GA 31902-1340

Phone Number: (706) 653-4059