To:  Employees Enrolled in a City Health Plan

Date:  July 25, 2002

The New York City Health Benefit Program (NYCHBP) has finalized
negotiations and implemented annual renewal rates for health plan
carriers, effective July 1, 2002.  These new rates will be reflected in the
August 8, 2002 paycheck.  Rates have increased significantly for Aetna
and the Empire EPO which may create a financial hardship for some
employees.  The City has informed the University that, for a limited
time, due to these exceptional circumstances they will consider
permitting affected employees to transfer health plan carriers if the
rate change creates a financial hardship. In such a case, employees
should provide the Human Resources Office with a letter documenting
the financial necessity of the change. The request will be referred to
the City for determination on a case-by-case basis. If approved, we will
be notified of the effective date.

The time period in which to make a plan change due to this
exceptional circumstance expires August 30th.  If you do not file a
request to change your health plan carrier on a timely basis, you will
not have the opportunity again until this Fall during the regular transfer
period.  As you are aware, if you change health plans in the Fall, your
new health plan and contribution rate will take effect the first full payroll
of January 2003.

Please review the chart with the new health plan rates to determine if it
creates a significant financial burden.  The rate chart can be found at

http://www.nyc.gov/html/olr/pdf/healthb/july02act.pdf

(NOTE: you will need Adobe Acrobat Reader version 4.0 or higher- to
download that, go to

http://www.adobe.com/products/acrobat/readstep2.html  )

If you determine that you need to change plans you will have to fill out
a health benefits application and provide a financial hardship letter.
Please contact  Paula Keane-Dawes or me immediately at extension
2740, so that the paperwork can be expedited.