Effective June 1, 1999, several changes will be made to GA-23111, Plan D, which covers persons eligible for Medicare. Plan D medical benefits will be improved significantly, but the prescription drug benefits will be reduced. Despite the reduction in prescription drug benefits, the revised Plan D will still provide benefits equal to or greater than any standard Medigap Plan. In addition to the revisions to Plan D, a new Plan F will also be offered to persons eligible for Medicare. Plan F will have the same identical benefits as the revised Plan D, except that it will not cover prescription drugs.

These changes are being made after several months of analysis by United HealthCare and the Railway Labor Organizations that participate under GA-23111. Continuing increases in the cost of prescription drugs and other medical services necessitated these changes. Without these changes, Plan D premiums would have become unaffordable for most railroad retirees in the next few years.

The amounts paid under Plan D for prescription drugs have increased at a rate of about 17% for the past few years and are also projected to increase at similar levels in the next few years. Plan D has also seen benefit payments for other covered medical services increase over 5% per year during this same time frame. The decision to make changes in the benefits was a difficult one, but just raising premium rates to keep up with these claim costs was not a financially responsible option. The ultimate decision was to seek a balance between benefit levels and the premiums needed to cover the claims payable under the Plan.

Details of the changes to Plan D benefits were described in an extensive communication package mailed in late February to the homes of all individuals currently covered under Plan D. For anyone who did not receive this material, copies can be obtained by calling United HealthCare at 1-800-908-0453.

United HealthCare will be holding a "Special" Open Enrollment for all GA-23111 Plans during June and July, 1999. This "Special" Open Enrollment is being held because of the significant changes made to Plan D and because all GA-23111 Plans (including the new Plan F) are now being offered to a broader group of former railroad employees. Prior to the Open Enrollment, former railroad employees must have been covered by one of the National Railroad Health and Welfare Plans. Beginning with this Open Enrollment, GA-23111 will be available to any former railroad employee who was covered under any health plan and who is a retired member of a Participating Railway Labor Organization.

During this "Special" Open Enrollment, any individual who is eligible (including the broader group) can enroll during June or July, 1999 without any requirement of good health or pre-existing restrictions. Complete details of the GA-23111 eligibility and benefit provisions are provided in a revised GA-23111 benefits booklet which can be obtained by calling United HealthCare at 1-800-842-5252 or 1-800-809-0453. Included in the booklet is an enrollment form, premium rates and instructions on how to enroll for coverage.