December 20, 2011

Select EmblemHealth EPO, InBalance EPO and
PPO Plan Options to Be Discontinued

Alternative Coverage Offered

We are continuing to streamline our product portfolio by discontinuing certain EPO, InBalance EPO and PPO plan options for small groups and sole proprietors -- beginning with April 2012 renewals and continuing through 2013. We will replace them with plans that provide more contemporary benefits designs and cost-sharing arrangements.

Transition to Replacement Coverage

Your clients currently covered under one of the discontinued plan options will be automatically enrolled in an alternative plan, unless they inform us otherwise. These groups will have the option to purchase upon renewal any EmblemHealth plan offered to the small group market. Please refer to this chart to view the key plan differences and replacement options.

Notifying Groups and Members

We will mail letters announcing the discontinuance to affected groups (with a copy to brokers), about 90 days before the effective date. This will provide ample time for your clients to evaluate replacement plans and consider their options. For your reference we have attached samples of the small group, sole proprietor and member communications.

At EmblemHealth, we're committed to serving the small group market in New York, offering plans that have attractive benefits at competitive price points. If you have questions about any of our plan discontinuances, please contact your EmblemHealth representative.