February 3, 2011


Notifying Customers About 3Q-4Q 2011 Rate Increases

The New York State Insurance Department ("NYSID") now has the authority to review and approve in advance health plan premium rate increases for community-rated plans. For large groups renewing in the third and fourth quarters of 2011, we have submitted to NYSID proposed premium increases over our currently-filed second quarter 2011 rates. We are required to give affected group customers advance notice of the proposed percent increase for which we are seeking approval.

We have sent to the affected EmblemHealth groups corrected notifications about the proposed percent increases over currently-filed second quarter 2011 rates. These letters replace the initial notifications that were sent out January 28 with incorrect percentages. The approximate requested percent increases by renewal date are as follows:

Underwriting Company

July - September 2011

October - December 2011

HIP 1.9% 4.4%
HIPIC 1.9% 4.4%

The notifications also indicate the approximate overall renewal rate increase groups can expect to see on their renewal date. This includes additional components not factored into the requested premium increase (e.g., previously-filed rate increases, etc.) described above.

To view a sample of the corrected Prior Approval notifications we sent to groups, please click on the appropriate link below:

HIP groups renewing 3Q HIPIC groups renewing 3Q
HIP groups renewing 4Q HIPIC groups renewing 4Q

After NYSID notifies us of the increases they have approved, you and each of your affected groups will receive written notification of the affected group's renewal rate increase approximately 60 days prior to the renewal date.

If you have questions, please contact your EmblemHealth representative.

Thank you.