Retirees can change plans this year

Municipal employees and retirees can switch their medical plan during October, the city's traditional health-care "reopener" period.

Retirees should pay particular attention to their options because, except for a once-in-a-lifetime exception, they can only switch during even-numbered years, such as 2002.

This year, you may want to hold off on changing plans because the contract for the city's preferred provider organization (PPO) indemnity plan-now run by GHI for medical services and Empire Blue Cross and Blue Shield for hospital operations—is up for bids. The new contract will go into effect next year and a special reopener period will be held, if necessary.

The city is considering bids from GHI, HIP and Empire Blue Cross and Blue Shield for the popular $1.5 billion preferred provider organization indemnity plan. A PPO lets subscribers chose between panel doctors and non-participating physicians. The city is required to put the indemnity plan up for bid every five years.

"Unless you have major problems with your current plan, it probably doesn't make too much sense to switch now," said Rosaria R. Esperon, administrator of the DC 37 Health and Security Plan. While the indemnity plan is out for bids, there won't be changes in the city's health-care benefits, she said. Any modifications of the indemnity PPO plan offered by the city will be implemented next year in consultation with municipal unions.

Ms. Esperon noted that some members and retirees might still want to change plans now because of the spike in HMO rates (see basic plan and optional rider costs) that occurred in July.

Because participation in this year's reopener will probably be small, the city will not produce its "Summary Program Description" booklet and DC 37 will not offer its usual extensive comparison charts until next year.

—G.N.H.