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Blue Cross ~ ""~"~1~.~ I~lue Shield ~ Sahsbur¥ Onice September 30, 1982 Nr. Charles D. McGinnis, County Nanager Cabarrus County Employees ~. O. Box 707 Coecord, Uorth Caroliua 28025 Dear Charles: Since our meeting in regards to adding your retired employees to your group health insurance program we have been notified of some changes which may affect your decision to add Lhese employees to your health coverage plan at this time. Effective January l, 1983, the Tax Equity and Fiscal Responsibility Act of 1982 has changed the relationship between Nedicare and Employer-provided insurance. In Lhe ~ast, Medicare has been primary payee making the Employer- provided insurance secondary. Effective January l, 1983, the change i~ the Federal Laws does effectively shift the cost burden to the Employer's health plan. Medicare Supplement and carve-out plans will no longer be feasiable. Due to the changes in the Federal Laws affecting Medicare, it would not be my recommendation that your retired employees be added to your health care program until we receive additional information regarding this Law and what affect claims incurred by these employees will have on the County's claims experience. This new Federal Law and the impact it will have on not only the County's group, but all of our groups that have retired or active employees who are over the age of '65, ]s now being studied by our Legal and Underwriting Divisions ! will be able to better advise you at a later date of the options available to your employees that are retired and over the age of '65. ~n the meantime if it is the desire of ~he County's to provide health coverage for ~hese retired employees and they are presently covered by Blue Cross on a nongroup basis, we could arrange to have their nongroup fees notices sent directly to the County office and a separate check could be written by the County. This way the County would be providing them with health care coverage and their claims would not be pooled in with that of your active emoloyees If you have further questions: please feel free to call me. Sincerely, .. > /4 Ken Ddyle Group Sales Representative 216 Statesville Blvd. ~ P. O. Box 669 ~ Salisbury 28~44 [] 704/636-3161