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Blue Ct°ss ~ <br /> Salisbury Office <br /> <br /> September 30, 1982 <br /> <br /> Mr. Charles D. McGinnis, County Manager <br /> Cabarrus County Employees <br /> P. O. Box 707 <br /> Concord, North Carolina 28025 <br /> <br /> Dear Charles: <br /> <br /> Since our meeting in regards to adding your retired employees to your group <br /> health insurance program we have been notified of some changes which may <br /> affect your decision to add these employees to your health coverage plan at <br /> this time. <br /> <br /> Effective January 1, 1983, the Tax Equity and Fiscal Responsibility Act of <br /> 1982 has changed the relationship between Medicare and Employer-provided <br /> insurance: In the past, Medicare has been primary payee making the Employer- <br /> provided insurance secondary. Effective January l, 1983, the change in the <br /> Federal Laws does effectively st~ift the cost burden to the Employer's health <br /> plan. Medicare Supplement and carve-out plans will no longer be feasiable. <br /> <br /> Due to the changes in the Federal Laws affecting Medicare, it would not be <br /> my recommendation that your retired employees be added to your health care <br /> program until we receive additional information regarding this Law and what <br /> affect claims incurred by these employees will have on the County's claims <br /> experience. <br /> <br /> This new Federal Law and the impact it will have on not only the County's <br /> group, but all of our groups that have retired or active employees who are <br /> over the age of '65, is now being studied by our Legal and Underwriting <br /> Divisions. I will be able to better advise you at a later date of the options <br /> available to your employees that are retired and over the age of '65. <br /> <br /> In the meantime if it is the desire of the County's to provide health coverage <br /> for these retired employees and they are presently covered by Blue Cross on <br /> a nongroup basis, we could arrange to have their nongroup fees notices sent <br /> directly to the County office and a separate check could be written by the <br /> County. This way the County would be providing them with health care coverage <br /> and their claims would not be pooled in with that of your active employees. <br /> <br /> If you have further questions, please feel free to call me. <br /> <br /> Sincerely, ..} <br /> <br /> Ken D~yle ~// < - <br /> Group Sales Representative <br /> <br />216 Statesville Blvd. D p. O. Box 669 D Salisbury 2814,1 [] 704/636-3161 <br /> <br /> <br />