S u m m e r E n r o l l m e n t 2 0 0 8

Guide for Active EmployeesSpecial Summer Enrollment 2008 Issue State Agency/Higher Education Employees EditionA publication of the Employees Retirement System of Texas

How the change to Caremark affects your

HealthSelect drug benefits

3Applying for new coverage?Postmark your application

by August 31

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It’s time for Summer EnrollmentWelcome to Summer Enrollment 2008.

Details of your coverage information is on the Personal Enrollment Statement sent to your home. It shows you the benefits you are currently enrolled in, as well as the benefit options available to you for Plan Year 2009.

Summer Enrollment fairs for employees begin on July 28. These fairs are a great opportunity to meet with ERS staff and benefit vendors to discuss your insurance benefits. See page 23 for a complete list of fairs.

Remember, if you do not need to make changes to your benefits, you do not need to attend a fair, log in to ERS OnLine, or call ERS.

Great Newsn HealthSelectSM of Texas premium rates will not change in

Plan Year 2009. This is the third consecutive year without a

premium increase.

n The State of Texas will continue to pay 100 percent

of the monthly medical insurance premium for full-time

employees. The State will continue to pay 50 percent of the

monthly medical insurance premiums for eligible covered

dependents as well.

n If you do not need to make any Summer Enrollment

changes, no action is necessary. You will automatically

be re-enrolled in the same coverage for the upcoming

plan year.

n The last day to make Summer Enrollment changes is

August 22.

ERS Customer Service expands phone hours

throughAugust 22:

Monday-Friday, 7:30 a.m. to 7 p.m.

Saturdays on:August 2, 9, & 16

9 a.m.-1 p.m.

(512) 867-7711 in Austin/

toll-free (877) 275-4377

Check out ourSummer Enrollment

web page atwww.ers.state.tx.us

Summer 2008

See how much your coverage costs you and

your employer

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During Summer Enrollment, you can …

TexFlex

q sign up for a TexFlex account if you don’t have one, change the con-tribution to your existing account, or elect or cancel a PayFlex™ Debit Card. Remember, each account will now have a $24 annual administra-tive fee.

Health care coverage

q move from HealthSelect to an HMO (if available where you live or work)q move from an HMO to Health-Select (may need evidence of insur-ability or EOI*)q move from one HMO to another (both in your service area)q add eligible dependents to your health plan (may need EOI*)q waive (drop) health care coverage (you may keep optional coverage such as dental and life insurance)q waive + Opt-Out Credit (available if you drop your health coverage and certify that you have compa-rable health insurance coverage (e.g., your spouse’s health plan)—see more information on page 11.q select or change your primary care physicianq select or change dependent’s primary care physician

Dental care coverage

q enroll in a dental planq move to the other dental planq enroll eligible dependents in your dental planq select or change your primary care dentist (for Aetna Dental HMO)q select or change dependent’s pri-mary care dentist (for Aetna Dental HMO)

Life, disability, AD&D, and long-term

care coverage

q apply through EOI for Optional Term life Insurance coverage at one, two, three or four times your salaryq apply through EOI for Depen-dent Term life Insurance or to add dependentsq enroll in or make changes to Voluntary Accidental Death and Dismemberment (AD&D) coverage for you or you and your family (no EOI required)q apply through EOI for Short-term or long-term Disability Insurance coverageq apply for long-term Care cover-age with John Hancock life Insur-ance Company—you must use the application provided by John Han-cock to show EOI (you can apply year round).

* EOI is an evidence of insurability process (proof of good health) that will allow you to apply for certain coverage during Summer Enrollment.

If you apply for a benefit requiring

EOI, you don’t have to take any

action in ERS OnLine. Just send in

your completed EOI application to

Fort Dearborn Life Insurance Com-

pany (FDL) and if you’re approved,

your employer will sign

you up for the coverage.

Summer Enrollment Checklist

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If you are a member of Health-SelectSM of Texas, Caremark will replace Medco as your HealthSelect Pharmacy Benefits Manager (PBM) on September 1.

Your drug copayments, deductible, and covered drug list (formulary) are not changing. Plus, you can still get your prescriptions from your local pharmacy, or mail order.

Why change managers? ERS chose to re-bid this contract to see if we could lower program costs. We are working to protect your benefits and keep your out-of-pocket costs as low as possible.

What you need to know about this change:• You will get two new HealthSelect cards sent to your home: a medical card from Blue Cross and Blue Shield to show at your doctor’s office and a prescription drug card from Caremark to show at your pharmacy.• You can still go to your local pharmacy. You will need to show your new prescription drug ID card to your pharmacist so you pay the right amount.• You will continue to fill any new or mail order refill prescriptions with Medco through August 31. Caremark will start filling mail service prescriptions on September 1.• Your refill information will transfer from Medco to Caremark on September 1 if there are remaining refills on your prescription. For example, your doctor prescribes you a new medication in July. Your doctor writes you the initial prescription, plus three 90-day refills. You order

the first 90-day supply through Medco’s mail order service. That leaves you with three refills that would transfer to Caremark on September 1. To order those refills, you would need to contact Caremark since Medco will no longer have your refill information.• Your drug card comes in a welcome kit with more information.

ERS is working with both Caremark and Medco to make this change as easy as we can for you.

The following are some frequently asked questions about the change to Caremark.

Pharmacy Benefits Manager

Who is the new Pharmacy Benefits Manager (PBM) for HealthSelect?As of September 1, 2008, Caremark will be the new PBM.

What does a PBM do?A PBM processes prescription drug claims. A PBM also negotiates the best possible prices with drug manufacturers and retail pharmacies in order to reduce costs for the plan and you.

Why did ERS change the PBM?ERS chose to re-bid this contract to see if we could lower program costs. We are working to protect your benefits and keep your out-of-pocket costs as low as possible. The new contract with Caremark will save nearly $265 million over the next four years. These projected savings helped us to keep your HealthSelect medical and drug benefits the same, with no premium increase for Plan Year 2009.

Why did ERS select Caremark?Caremark offered the best overall value to the GBP with a combination of quality services and innovative programs at a highly competitive price.

Moving from Medco to Caremark

Will my prescription history from Medco be transferred to Caremark?Yes.

Will my prescriptions stay in the same tier and category so my copayment stays the same?Caremark has a drug list (formulary) specific to them. Some prescriptions may change categories and/or tiers. If you currently take medications that move into a category or tier that results in a higher copayment, your copayment will be grandfathered. This means you will continue to pay the same copayment for these medications as you do now through August 31, 2009, provided there is no change in your prescription. Beginning September 1, 2009, your copayment for these medications may change.

A new Pharmacy Benefits Manager for HealthSelectHow will the change to Caremark affect you?

n You will receive two new ID cards—a medical card from Blue Cross and Blue Shield and a prescription drug card from Caremark.

n You can still go to your local pharmacy. Show your new prescription drug ID card to your pharmacist.

n Use Medco to fill mail order prescriptions through August 31. On September 1, Caremark will start filling new mail service prescriptions.

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Caremark, continued on page 14

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Life is full of expenses. Health care is especially costly, even

with health insurance. Out-of-pocket expenses for day care can also add up. Enrolling in TexFlex allows you to pay for these expenses while lowering the income taxes you pay and increasing your spendable income.

What is TexFlex?TexFlex provides Flexible Spending Accounts (FSAs) that let you pay for out-of-pocket health and day care expenses. Use TexFlex to pay for co-payments for physician and dentist visits; prescription drugs; eyeglasses and contact lenses; and day care for a child or adult family member. And that’s not all. Do you buy cold medicine, pain relievers, or antac-ids? These over-the-counter (OTC) health care items, and many more, are covered by TexFlex.

See the TexFlex savings example on the next page.

Enrolling in TexFlex is easy:• First, estimate the amount you will spend on out-of-pocket health care and/or day care expenses for an entire year. • Then, decide how much you wish to set aside in your FSA-Health and/or your FSA-Day Care. The amount(s) you pledge will come out of your paycheck each pay period on an income tax-free basis.• Enroll using ERS OnLine on the ERS website, www.ers.state.tx.us during Summer Enrollment (July 28-August 22), or when you have a qualifying life event (QLE) like get-ting married or having a child.

How do I get reimbursed?You can submit online claims or file paper claims with your receipts via mail or fax. Your reimbursement will arrive by mail within days, or you can set up direct deposit to be reimbursed even faster. Save ALL

receipts from your health care and day care expenditures so you can provide documentation when you file a claim for reimbursement.

If you don’t like filing claims, you can pay for many eligible expenses using the optional PayFlex™ Debit Card, which is available for $15. Keep all debit card receipts in case you are asked for documentation on a purchase.

How long do I have to spend the money I set aside?When you enroll in TexFlex, you decide how much money to put in your FSA-Health and/or FSA-Day Care. With the FSA-Health, the en-tire amount you pledge for the plan year is available on September 1. It’s like an interest-free loan to pay your out-of-pocket health care costs.

If you set up an FSA-Day Care, the money you set aside will be avail-able to you as it is deposited each pay period.

You have a total of 14½ months to spend the money. Funds are avail-able on September 1, and you have until November 15 of the following year to use them. Unused funds do not roll over to the next plan year.

With the fees, can I still save money using TexFlex?Yes, TexFlex can save you money. The more you pledge, the more you save. The example on the next pageshows how you can take home more money by reducing your taxable income.

TexFlex helps you save on health care, dependent care

n TexFlex lowers your taxable income while increasing your spendable income.

n TexFlex covers hundreds of health care items, including copayments and over-the-counter drugs, as well as day care expenses.

n A $24 account fee will be charged per account in Plan Year 2009.

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Remember: If you currently have a TexFlex account(s), you will be

automatically re-enrolled on Septem-ber 1. Your contribution amount and

PayFlex™ Debit Card (if you have one) will continue at the same level.

During Summer Enrollment, go on ERS OnLine or call ERS

to make account changes or start a TexFlex account.

TexFlex Account Fee

Prior to 2001, participants were charged a monthly administrative fee of $3 per account. Since 2001, TexFlex participants have had a “fee holiday” in which no monthly fees were charged. In Plan Year 2009, each TexFlex account will have a $2 monthly fee. Here’s how the fee will be charged:• The $24 annual administrative fee for each account you have is charged in a lump sum at the start of the plan year.• This fee is in addition to the optional $15 fee for the PayFlex™ Debit Card if you choose to have it. Only one card fee is deducted annually from your TexFlex account, even if you open both an FSA-Health and FSA-Day Care. The fee also covers additional cards for family members.• If you currently have one or both FSAs: During the upcoming Summer Enroll-ment, remember to increase the amount of your Plan Year 2009 pledge to cover the $24 fee for each account.

For more information on the fees, go to http://www.ers.state.tx.us/summer_en-rollment/documents/se_texflex_faq.pdf.

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Judy:• has an annual salary of $36,182,• enrolls in FSA-Health with a $600 annual pledge and pays a fee of $24,• enrolls in FSA-Day Care with a $4,800 annual pledge and pays a fee of $24, and• elects the PayFlexTM Debit Card and pays a fee of $15.

Kevin:• has the same annual salary of $36,182,• is not enrolled in TexFlex, and• pays the same amount of health and day care expenses as Judy.

Taxable salary• After Judy’s TexFlex pledges of $600 and $4,800 are deducted, her annual taxable salary is $30,782.• Kevin does not deduct money for TexFlex. His annual taxable salary is $36,182.

After-tax salary (Both Judy and Kevin pay income tax of 15% and 7.65% for FICA on their taxable salary)• Judy pays a total of $6,972.12 in taxes and has an after-tax salary of $23,809.88. This amount is calcu-lated using her annual taxable salary of $30,782.• Kevin pays over $1,200 more in taxes than Judy—a total of $8,195.22, making his after-tax salary $27,986.78. This amount is calculated using his annual taxable salary of $36,182.

Spendable income • Judy pays for her health and day care expenses with TexFlex funds. She does not have to use her spend-able income for these expenses, so her annual spendable income is $23,809.88.

• Because Kevin is not enrolled in TexFlex, he pays his health and day care expenses with his spendable in-come. After paying for his expenses, Kevin’s annual spendable income is $22,649.78.

ResultBecause Judy pays her health and day care expenses with tax-free TexFlex funds, she has $1,160 more to spend each year.

TexFlex is a convenient way to pay health care and day care expenses—while putting a little extra money in your pocket. For more information, visit www.ers.state.tx.us/texflex or call PayFlex toll-free at (866) 353-9839.

JudyEnrolled in TexFlex

KevinNot enrolled in TexFlex

Annual Salary $36,182 $36,182

TexFlex Enrollment $-5,400

($4,800 FSA-Day Care & $600 FSA-Health)

$0

Taxable Salary $30,782 $36,182

Income Tax and FICA $-6,972 $-8,195

After-tax Salary $23,809 $27,986

Health and Day Care Expenses Paid with tax-free account funds $-5,337Paid out of salary

Spendable Income $23,809 $22,649

Judy has $1,160 more money she can spend each year than Kevin

Find more spending money with TexFlex

Examples are for illustration purposes only, assuming 22.65% in federal taxes and not taking into account other deductions such as health premiums for dependents. Individual savings are determined by an individual’s income tax bracket and other deductions.

Figure how much you should contribute to TexFlex. See the worksheet on page 22.

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Summer Enrollment changes are easier than everJust go to www.ers.state.tx.us and click on the ERS OnLine Login to log in. Call ERS if you need help with your User ID or Password.

What if I don’t have Internet access? No problem. If you need to make changes to your benefits, see your benefits coordinator or call ERS at (512) 867-7711 in Austin or toll-free at (877) 275-4377.

During Summer Enrollment, you can use ERS OnLine to:• Check your enrollment for Plan Year 2009, which begins September 1, 2008;• Update your personal information with ERS;• Update Social Security numbers (SSNs) and other dependent information;• Enroll yourself and your eligible dependents in health and dental insurance that does not require evidence of insurability (EOI);

• Designate a primary care phy-sician (PCP) for you and your dependents;• Waive or reduce coverage or drop dependents;• Designate a primary care den-tist (PCD) for you and/or your dependents if you are enrolled in the Aetna Dental HMO; • Update your beneficiary information;• Elect or increase your Volun-tary Accidental Death & Dis-memberment (AD&D) insurance; or• Enroll in or change your TexFlex Health and Dependent Care elections and elect a debit card.

You cannot use ERS OnLine to:• Make changes to coverage that

require EOI approval;• Change your SSN, date of birth, or gender (see your benefits coordinator for these changes);• Apply for long-term Care Insurance; or• Apply for the State Kids Insurance Program (a SKIP application is available on the ERS website).

New ERS OnLine features:n You now have access to a special section of ERS OnLine that displays specific information about your Texas Employees Group Benefits Program (GBP) benefits. During the plan year, you can view information about the benefits in which you are enrolled. During Summer Enrollment, you can view information about benefits for which you are eligible. Topics include: • Eligibility information for yourself and your dependents,• The costs for benefits,• A summary of benefits,• How to file a claim,• How to continue benefits after leaving employment, and• Carrier contact information.Find it under Benefits Summary — Enrolled Plans and

Eligible Plans.

n ERS Account Balance SummaryIf you are an ERS member, you can now view your retirement account balance and service credit totals on ERS OnLine.

Find it under “My Retirement Information.”

Your benefits information—all in one spot

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Here’s what’s new in Plan Year 2009:

• The TexFlex fee holiday is going away. Each TexFlex account will have a $24 administrative fee per plan year. If you currently have an account, you will be re-enrolled for Plan Year 2009 at the same contribution amount unless you make a change. See page 4 for more information.

• Rates for the State of Texas Dental Choice PlanSM will increase by 5 percent.

• Rates for the Aetna Dental HMO will not change.

• Optional Term Life rates and Dependent Term Life rates will not change.

• Mercy Health Plans and Valley Baptist Health Plans will no longer participate in the Texas Employees Group Benefits Program (GBP). If you currently participate in one of these health maintenance or-ganizations (HMOs), you and your currently covered dependents will be automatically enrolled in Health-SelectSM of Texas on September 1, unless you sign up for another HMO in your area. Evidence of insurability (also known as proof of good health) will not be required.

• The following HMOs will be available in Plan Year 2009: Community First Health Plans, FirstCare, and Scott & White Health Plans. Your eligibility county (the county that you live or work in) will determine your choice of health plans.

• HMO rates will increase by an average of 5 percent.

• The following HMOs will expand their service areas.--FirstCare will expand the Abilene service area to in-clude McCulloch and Throckmorton counties; the Lub-bock service area to include Reagan County; and the Waco/Temple service areas to include Brazos, Burnet, Llano, Milam, Robertson, and San Saba counties.--Scott & White Health Plans will expand the Aus-tin/Temple/Waco service area to include Hill and Somervell counties.

• If you are in HealthSelect, your Pharmacy Benefits Manager (PBM) will change from Medco to Caremark.

Give your teeth a bright future—enroll in dental

If you aren’t already enrolled, you might want to sign

up for dental insurance, effective September 1. You can sign up without evidence of insurability (EOI), or proof of good health. You must be enrolled in dental coverage if you want to enroll your dependents in that coverage.

The State of Texas Dental Choice PlanSM —the State’s indemnity plan—is adminis-tered by the Government Employees Hospital Association (GEHA). Rates for the plan will increase by 5 percent in Plan Year 2009. GEHA benefits are available to you any-where in the United States or Canada, and: • Increase each year during your first three years of enrollment.• let you use any dentist, with your eligible dental work covered according to a payment schedule.• Give you a preferred provider network option through the GEHA network, CONNECTION Dental, allowing you to maximize your dental benefits.

The Aetna Dental HMO, administered by Aetna Dental, Inc., is available to you if you live or work in the Texas service area. Rates for the Dental HMO will stay the same in Plan Year 2009. Dental HMO benefits:• Are administered by a primary care dentist (PCD), which you select from a list of approved providers.• let you enroll dependents who live outside the DMO service area; however, they must return to the service area and use their PCD to receive dental care, except for emer-gency services.• Allow you and any dependent(s) you enroll to choose different PCDs. You can enter a PCD in ERS Online or call Aetna to select a PCD. You must select a PCD before you receive your ID card.

For more information on the two dental plans, see the comparison chart on page 20. Call the following numbers for customer service:State of Texas Dental Choice PlanSM (GEHA)—(800) 618-2389Aetna HMO—(800) 275-1794

n You can choose from two dental plans.

n Enroll without EOI.n Rates for the State of Texas Dental Choice PlanSM will increase by 5 percent. Rates for the Aetna Dental HMO will stay the same.

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Optional Group Term Life InsuranceIf you are an employee enrolled in health coverage, you automatically receive, at no cost to you:

• $5,000 group term life insurance• $5,000 of Accidental Death and Dismemberment (AD&D) coverage

For additional financial security and peace of mind, you can apply for optional term life insurance at one, two, three, or four times your salary. You must provide proof of good health, also known as evidence of insurability (EOI). Your monthly premiums and the amount your beneficiary will receive depend on your age, salary, and the type of policy you purchase.

Dependent Group Term Life Insurance Your eligible dependents can apply through EOI for term life insurance. The monthly premium is $1.38. The benefit includes $5,000 term life with $5,000 AD&D for each fam-ily member. It will be paid to you upon the death of your covered dependents or in the event of certain accidental injuries.

Voluntary Accidental Death and Dis-memberment (AD&D)Voluntary AD&D coverage can provide financial protection in the event of accidental death or if you receive certain accidental injuries. You will be paid a benefit if you lose your sight or a limb due to an accident. An active employee under age 70 can select up to $200,000 of Voluntary AD&D coverage for only $8 per month.

No EOI is required to enroll. You can sign up for coverage for you only or for you and your family. The benefit pays your beneficiaries the full amount of your coverage upon your death. If your family member dies, you will receive a percentage of the coverage.

Disability insuranceYou (not your dependents) can ap-ply for long-term and Short-term Disability Insurance, which will give you a portion of your income if you become disabled and cannot work. EOI is required.

Short-term disability Insurance will give you a portion of your monthly income for up to five months after a 30-day waiting period or any sick leave you may have, whichever is greater, if illness or injury (including maternity) keeps you from work-ing. The cost is $0.32/$100 of your monthly salary.

Long-term disability Insurance, available for $0.70/$100 of monthly salary, after a 90-day waiting period, will give you a portion of your monthly income if you become disabled and unable to work.The benefit will stop when you reach age 65, even if you are still considered disabled by Social Security.

To applyTo apply for life or disability insur-ance, fill out an EOI application and mail it to the address shown on the form, postmarked by August 31. You can get the application at www.ers.state.tx.us/Insurance/Forms or contact your benefits coordinator or call ERS. If approved, coverage will be effective the first of the month following receipt of the approval letter at ERS.

If you receive an approval letter from Fort Dearborn life, advise your benefits coordinator to enter the election on your behalf. The effective date will be first of the month following the receipt of the approval letter.

Protect your family with optional insurance

n During Summer Enrollment, you can apply for Optional and Dependent Term Life Insurance and Short- and Long-term Disability Insurance.n You can enroll in Voluntary Acciden- tal Death and Dismemberment insurance.n Rates will stay the same for Plan Year 2009. (Check your Personal Enrollment Statement or page 21.)

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Do you live in Bastrop, Lee, or Travis counties? You don’t need EOI if: You want to add dependents to your HealthSelectSM of Texas coverage, even though Scott & White Health Plan is an HMO available in your county.You do need EOI if: You want to enroll in HealthSelect and you are not already a member.

Make sure your EOI application is postmarked by

August 31.

Note: The list at left applies to the most common Sum-mer Enrollment changes members request. For detailed information about evidence of insurability (EOI), call ERS or visit the Summer Enroll-ment page at www.ers.state.tx.us.

EOI is an application process in which you provide information on the condition of your health or your dependent’s health. Certain types of insur-ance coverage under the Texas Employees Group Benefits Program (GBP) require EOI.

Submit your EOI application as soon as possible. Fort Dearborn life Insurance Co. (FDl) starts accepting EOI applications for Plan Year 2009 coverage on July 1. The sooner you get your application in, the sooner it will be processed. Applications postmarked after August 31 will not be accepted.

If you have not been approved by August 31, your ap-plication will be considered as long as it is postmarked by August 31. If you are approved after August 31, your coverage may not start until October 1 or later.

How do I apply for EOI?❶ Get an EOI application. Download an application at www.ers.state.tx.us/Insur-ance/Forms or call ERS. Use one application for your entire family to apply for all benefits. Sending multiple applications may delay processing.

❷ Complete the application. Include your ERS employee ID. Your employee ID is the 11-digit number at the bottom of the Personal En-rollment Statement you received in the mail from ERS.

You also can find your employee ID under your name in the Benefi-ciary Summary on ERS Online. Also include your agency number. Ask your benefits coordinator for your agency number, or see the listing shown with the EOI form on the ERS website.

Answer all EOI ques-tions truthfully and completely. Providing false answers on an EOI application for any GBP insurance cover-age is a violation of state insurance laws and can result in can-cellation of coverage and expulsion from the GBP. ERS enforces laws against people who try to defraud the GBP. Call FDl toll-free at (800) 778-2281 for help with your EOI application.

❸ Review the application.Make sure you’ve correctly answered all questions (including your height and weight). An incomplete ap-plication can delay processing.

❹ Send in your application.Mail in your application to FDl as early as possible (faxes are not accepted). The address is provided on the application. FDl will send you an approval or denial letter.

If you are approved, your coverage will begin the first of the month following the approval. Example: You receive an approval letter on November 10. Your em-ployer enters your information in ERS Online. In this instance, your coverage would start on December 1.

Now is the time to send in your evidence of insurability (EOI) application

Interested in Long-term care Insurance?Long-term Care Insurance requires EOI. John Hancock Life Insurance Company handles EOI for this type of coverage. You can apply for Long-term Care Insurance through EOI at any time of the year. For more informa-tion, call (800) 400-9396 toll-free.

During Summer Enrollment, evidence of insurability (EOI) is required when:

n You enroll yourself or your dependents in HealthSelectSM of Texas

n You enroll for Optional Term Life Elections I-IV.

n You enroll or add dependents to Dependent Term Life coverage.

n You enroll in Short- or Long-term Disability Insurance.

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You can apply anytime of year

to purchase long-term Care Insurance to help pay the cost of care that your health plan and Medicare are not de-signed to cover. This includes informal care assistance for daily living, home-maker services, and community-based care.

John Hancock is the long-term Care Insur-ance carrier for the Texas Employees Group Benefits Program (GBP), under a policy is-sued to The Texas A&M University System.

Eligible family members• Spouses (age 18 or older)• Parents and parents-in-law• Grandparents

Your children are not eligible. If you are an actively-at-work employee working 17.5 or more hours per week, you can enroll within 90 days of your hire date without evidence of insurability (EOI). If you are returning to work and have previous state employment, you may have to show EOI. For more infor-mation, contact John Hancock.

Premiums are based on your age and are paid directly to John Hancock. If you current-ly have long-term Care coverage with CNA, you can continue that coverage or apply with EOI for long-term Care Insurance under John Hancock.

To applyApply by using the John Hancock enrollment form. Go to their site at http://ers.jhancock.com/ (username: ers; password: mybenefit). If you don’t have Internet access:• Call John Hancock Customer Service from 7:30 a.m. until 5:30 p.m. CST at (800) 400-9396 toll-free. • For TTY, call (800) 225-1808 toll-free.• From outside of the United States, call (617) 572-0048.

n You and your eligible family members can apply with evidence of insurability (proof of good health) through John Hancock anytime of year.n Your eligible family members can apply even if you do not.

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You and your family members can apply for Long-term Care Insurance all year long

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HealthSelectSM of TexasMedicalBlue Cross and Blue Shield of Texas(Group number—38000)(800) 252-8039

Prescription DrugsCaremark(Group number—RX1292)(888) 886-8490

Community First Health Plans(Group number—0010180000)(877) 698-7032

FirstCare(Group number—M64790)(800) 884-4901

Scott & White Health Plan(Group number—000058)Temple: (800) 321-7947Bryan/College Station:(800) 791-8777Georgetown: (800) 758-3012Waco: (800) 684-7947

State of Texas Dental Choice PlanSM

GEHA(Group number—2389)(800) 618-2389

Aetna Dental, Inc.Dental HMO(Group number—876396)(800) 275-1794

PayFlex (TexFlex)(866) FLEX-TEX or(866) 353-9839

State Kids Insurance Program (SKIP)Texas Health and Human Services Commission(877) KIDS-NOW/(877) 543-7669

Fort Dearborn Life InsuranceCompany(Evidence of insurability, optional life, disability, and Voluntary AD&D insurance)(800) 778-2281

John Hancock Life Insurance Company(Long-term Care Insurance)(800) 400-9396

Contact information for benefit carriersThe benefit carriers are linked through the ERS website, www.ers.state.tx.us, or you can call the toll-free numbers below:

If you have othercoverage, you can drop your health insurance and get a $60 credit

During Summer Enrollment, if you are an active employee with comparable

health insurance to what the State pro-vides, you can drop your Texas Employ-ees Group Benefits Program (GBP) health insurance and sign up for the Health Insurance Opt-Out Credit. If you have TRICARE and Medicare, you are not eli-gible for this credit.

The Opt-Out Credit (up to $60 for full-time employees and up to $30 for part-time employees) can be applied toward:• Dental coverage premiums, and/or• Voluntary Ac-cidental Death and Dismemberment (AD&D) premiums under the GBP.

The effective date of the coverage will be September 1, 2008.

Please note: If you drop your coverage, you will lose the prescription benefits and the Basic Term Life policy ($5,000 for active employ-ees) connected to your health coverage under HealthSelectSM of Texas or an HMO. Also, you may not be able to re-enroll in the state plan later. If you take this credit and later want to enroll in HealthSelect, you may have to provide proof of good health, also known as evidence of insurability (EOI). Your accep-tance is not guaranteed.

n Only choose the Opt- Out Credit if you don’t need the State’s health insurance and you are enrolled in another plan that is as good as or better than what the State provides (excludes TRICARE and Medicare).n The Opt-Out Credit can help you pay the premium for dental coverage and/or Voluntary AD&D.

HigHligHtS

If you need medical care or a prescription before you

receive your ID card(s), give the provider or pharmacy

your Social Security number and the group number of your new carrier to verify

enrollment.

Are You chAngIng heALth pLAns?

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Apply anytime of year and, if you qualify, save hundreds of

dollars annually on your children’s health insurance through the State Kids Insurance Program (SKIP) premium supplement. You pay $15 or $25 per month for your eligible children’s health insurance premiums (depending on your income) and SKIP picks up the difference.

Do I qualify for SKIP?You can apply for the SKIP if you:• Meet family income and size guidelines (see table at right);• Have children qualified for state insurance under the age of 19 living with you in Texas; • Are not eligible for Medicaid;• Have children who are U.S. citi-zens or legal permanent residents; and• Are an active employee eligible for health insurance.

If your application is denied, you can re-apply after September 1 to be considered under new income and asset guidelines, which will make more people eligible for SKIP.

ExampleSheryl is a full-time employee who is in HealthSelect and SKIP. The State pays $498.49 and the SKIP supplement pays $112.95 toward the children’s health coverage.

Sheryl pays only $25 per month for HealthSelect coverage for her chil-dren, instead of $137.95 per month. In a year, she pays $300 for her children’s health premiums instead of $1,655.40, a savings of $1,355.40!

How do I apply for SKIP?For a SKIP application and instruc-tions, go to www.ers.state.tx.us/In-surance/Forms, or ask your benefits coordinator for a copy. You can apply anytime of year, but if you had SKIP before June 1, 2008, you must re-apply by August 1 so SKIP continues September 1.

The application includes questions about your family’s income and as-sets. Make sure you complete every section, and send it to the Health and Human Services Commission (HHSC) at the address on the appli-cation. HHSC (not ERS) reviews and makes decisions on applications for the SKIP program. If your applica-tion is approved, HHSC will notify ERS and your approved children will be enrolled automatically in your health plan on the first of the next month.

You must re-apply for SKIP each year. You should have received a letter this summer reminding you to re-apply.

SKIP income guidelines (effective April 1, 2008)

FamilySize*

Annual Family Income Monthly Family Income

2 $28,000 $2,334

3 35,200 2,934

4 42,400 3,534

5 49,600 4,134

6 56,800 4,734

7 64,000 5,334

8 71,200 5,934

* Add $7,200 to the Annual Family Income for each additional family member. “Family size” includes the employee, spouse, and all eligible dependents under the age of 19. The total number does not include children over the age of 19, grandparents, or other relatives who may be living in the household.

Don’t forget: children need insurance, too

n The State Kids Insurance

Program (SKIP) is a children’s

insurance premium supple-

ment. n If you qualify for SKIP, you pay

only $15 or $25 a month for

the health insurance premiums

of your eligible children under

age 19. n If your SKIP effective date was

prior to June 1, 2007, you

must re-apply to continue SKIP

on September 1. n Apply for SKIP anytime of year.

HigHligHtS

In April, the annual income limit

for a family of four increased from

$41,300 to $42,400.

For assistance, call HHSC at:(877) KIDS-NOW/(877) 543-7669

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If you are a full-time employee, the State of Texas will continue to pay

100 percent of your health insurance premium, and if you cover depen-dents, the State will pay half of the cost of your dependent coverage. For example, if you are in HealthSe-lect and cover your spouse, the State will pay $566.57 per month while you will pay $206.03.

Remember:• In order for your dependents to be enrolled in a particular coverage (such as health or dental coverage), you must be enrolled in that coverage.• If you live or work in an area where a health maintenance orga-nization (HMO) is available, you can switch from HealthSelect to the HMO during Summer Enrollment.

If you want to switch from an HMO to HealthSelect, you may need to provide proof of good health, oth-erwise known as evidence of insur-ability (EOI). In this case, you

cannot make this change in ERS Online. (See more information on page 9.)

• If you change health plans, you must re-enroll your dependents in the new health plan for family coverage.

ERS regularly audits eligibilityERS regularly requires membersto prove that their dependents are eligible for coverage. Please check:• To make sure the correct county is listed as your eligibility county in ERS Online, or on your Personal Enrollment Statement.• To make sure your dependents are still eligible. Ex-spouses, married children, or children who are over-age are ineligible and raise costs for everyone in the program.

Respond right away to letters from ERS regarding the eligibility of your covered dependents.

If you know someone who may be covering an ineligible dependent, call ERS in Austin at (512) 867-7711 or toll-free at (877) 275-4377 and ask for the Risk and Cost Containment section.

Dependents must be eligible for health coverage

n Have you recently divorced?

You cannot carry your

ex-spouse on your insurance.n Your unmarried children are

eligible for coverage up to age

25. If you cover stepchildren or

grandchildren, they must reside

in your household.

HigHligHtS Important reminders for HHS Enterprise em-ployees (DADS, DARS, DFPS, DSHS, HHSC, Texas Cancer Council) During Summer Enrollment if you: • Have a life change such as a new baby or you get married; or • You want to add a dependent or optional coverage within 30 days of your hire date, You must contact accessHR. Fill out the Insurance Multipurpose Form (located at https://accesshr.hhsc.state.tx.us under Featured Links), sign, and fax it to accessHR at 1-866-245-3659. Once ac-cessHR enters the event information, you can go to ERS OnLine and enter your Summer Enrollment changes. If you try to do Sum-mer Enrollment changes before contacting accessHR, ERS OnLine won’t record your intended changes. For assistance, contact accessHR at 1-888-TXHHSHR (888-894-4747).

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Even though every effort has been made for a smooth transition, there may be an occasion when specific drugs will not be on the Caremark drug list. This could mean that you pay a higher out-of-pocket cost.

What do I do with a new prescription after September 1, 2008?You can use a retail pharmacy or Caremark’s mail service pharmacy to have your prescription filled.

Can I still go to my current pharmacy?Yes. The retail pharmacy network will be the same.

Can I send my refill in to Caremark before September 1? No. Caremark will not start filling prescriptions until September 1.

Do not send your prescription to Caremark prior to September 1 as the prescription will be forwarded to Medco and will delay the arrival of your medication.

Caremark

What is the relationship between Caremark and CVS?They are both wholly owned subsidiaries of their Parent companyCVS/Caremark, Inc. You can continue to use the pharmacy of

your choice. Using a retail pharmacy in the Caremark network allows you to receive the highest level of benefits.

Will I have to use a CVS Pharmacy for my prescriptions?No. You do not have to use a CVS Pharmacy for your prescriptions.

You may use any of the more than62,000 retail pharmacies in the Caremark network or the Caremark Mail Service.

Will I have to get a new health care card? If so, when will I receive it?You will get a new HealthSelect card as well as a new prescription drug card from Caremark. If you make no changes to your HealthSelect coverage during Summer Enroll-ment, you will get your new cards prior to September 1, 2008. If you make changes to your HealthSelect coverage during Summer Enrollment, you should get your cards in early September.

Will Caremark take over pharmacy benefits for all health carriers or just HealthSelect?Caremark will provide prescription drug services for HealthSelect only.

Will there be a new drug list?Yes, each PBM has a drug list that is specific to their organization.

Do I need any forms for Caremark?If you use a pharmacy outside the Caremark network, you will need to pay the total retail price for your prescription and then submit a Prescription Drug Claim Form along with an original prescription receipt to Caremark for reimbursement of covered expenses.

If you have a new mail service prescription, complete a Mail Service Form and send it to

Tier 1 Tier 2 Tier 3

Deductible $50 per person per plan year

Retail pharmacynon-maintenance drugs

$10 up to a 30-day supply

$25 up to a 30-day supply

$40 up to a 30-day supply

Retail pharmacymaintenance drugs

$15 up to a 30-day supply

$35 up to a 30-day supply

$55 up to a 30-day supply

Home delivery(mail order)

$30 up to a 90-day supply

$75 up to a 90-day supply

$120 up to a 90-day supply

If you purchase a brand-name drug when

a generic alternative is available (regardless of the

reason), you will pay your generic copayment plus the cost

difference between the brand-name and the generic drug.

Does Caremark have a website?Caremark’s website is

www.caremark.com/ers. Check the Caremark website for

mail order forms, prescription costs, and the preferred drug list.

What is the customer service number for Caremark?

Caremark will operate a customer service center in San Antonio

dedicated to HealthSelect members. Caremark’s toll-free customer

service number is (888) 886-8490.

Caremark, continued from page 3

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Caremark, along with your original prescription(s) and the appropriate copayment starting September 1, 2008. Be sure to include your original prescription, not a photocopy.

Caremark forms are available on the Caremark website at www.caremark.com/ers or by calling Caremark customer service at (888) 886-8490.

Will I have to get new prescriptions from my doctor?Two types of mail service prescriptions (compounded medications and controlled substances) will not transfer. If you plan to keep going to your local pharmacy for your compounded medication, you don’t need to get a new prescription if you have refills remaining. A new prescription is always required for controlled substances, whether you fill them with mail order service or at your local pharmacy. TexFlex

Will Caremark share information with PayFlex so I don’t receive receipt requests when I use my PayFlexTM Debit Card?Yes. If you use your PayFlexTM Debit Card to pay for your prescriptions, in most instances PayFlex will not ask for a copy of your receipt.

Will the TexFlex program debit card work with Caremark?Yes. You can pay for your prescription medications through mail service or at your local retail pharmacy with your PayFlexTM

Debit Card. Your payment information on file with Medco will not transfer to Caremark. You will need to provide Caremark your debit card information.

Copayments

Will the copayment structure stay the same?Yes. The current copayment structure, the three drug tiers, and drug categories stay the same for Plan Year 2009. (See table on page 14.)

Where can I see Caremark’s preferred drug list?Caremark’s preferred drug list is posted on the Summer Enrollment page of the ERS website at www.ers.state.tx.us. Caremark’s preferred drug list is on their website at www.caremark.com/ers.

How do I know if a drug I currently take is covered in the Caremark drug list?Most medications on the Medco drug list are on the Caremark drug list. For the first year, Caremark’s list will mirror the current Medco list. If you currently take a medi-cation that through Caremark is in a category or tier with a higher copayment than Medco, your existing prescription copayment will be grandfathered. This means you will continue to pay the same copayment for those medications as you do now through August 31, 2009. This applies as long as there is no change to your prescription. Beginning September 1, 2009, your copayment may change.

To check the cost of a specific medi-cation, visit Caremark’s website or call Caremark customer service at (888) 886-8490. If you are being grandfathered into a lower copayment, the website will not reflect that lower copayment.

Will I still have to pay the $50 per person per plan year deductible?Yes. September 1 of every year there is a $50 per person per plan year deductible.

Mail service

Does Caremark have a mail order service?Yes. Caremark has a mail service pharmacy located in San Antonio.

Will I save money by using mail service?Yes. If you get your maintenance medications through mail service, you do not have to pay a retail maintenance fee.

Will I have to resubmit my mail service prescriptions to Caremark?In most cases, your existing mail service prescription refills will automatically transfer to Caremark’s mail service facility in San Antonio. When you are ready to refill your prescription, you can call Caremark or go online to order the refill.

Two types of mail service prescriptions will not transfer from one mail service pharmacy to another. These are compounded medications and controlled substances. If you plan to keep going to your local retail pharmacy, and you have refills remaining for your compounded medication, you don’t need to get a new prescription. A new prescription is always required for controlled substances, whether you fill them with mail service or at your local pharmacy.

If I currently order prescriptions online, how will my mail service prescriptions work?The process will be similar to the current process with Medco. Caremark will have customer service representatives available at (888) 886-8490 to ensure each participant understands the online process.

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Effective September 1, 2008HealthSelect1

Benefits In-Area

Network Non-NetworkHMOs

Out-Of-Area2

Health Benefits Chart* of Out-of-Pocket Expenses

* This comparison chart offers a general overview of benefits and their associated out-of-pocket expenses under HealthSelect and the HMOs. Please refer to your health plan’s benefits book or summary of benefits for a description of benefits. You may also contact your plan’s customer service department for specific questions.

For information on health plans, visit www.ers.state.tx.us.

Calendar year None $500 individual $200 individual, Nonedeductible $1,500 family3 $600 family3

Calendar year out-of-pocket $1,000 per person4 $3,000 per person4 $1,000 per person4 Nonecoinsurance maximum

Lifetime maximum None $1,000,000 None None

Primary care physician Yes No No Yesrequired

Primary care physicians’ $20 40%5 30%5 $30office visits Physicals $207 40%5 30%5 $307

Specialty physicians’ $30 40%5 30%5 $40office visits Eye exam, one per $303 40%3/5 30%3/5 $408

year per participant

Family planning services $30 40%5 30%5 $40 Well woman exam $303/7 40%3/5 30%3/5 $407/8

Speech and hearing 20% if no office visit; 40%5 30%5 $40 testing/therapy $30 copay plus 20% with office visit

Allergy antigens/serum 20% 40%5 30%5 Covered at 50%

Allergy injections 20%6 40%5 30%5 No charge

Allergy testing 20% 40%5 30%5 $40

Diagnostic x-rays, lab 20% 40%5 30%5 No charge tests and mammography

Office surgery and 20% 40%5 30%5 $307

diagnostic procedures

Rehabilitive therapy 20% if no office visit; $30 co- 40%5 30%5 $40 pay plus 20% with office visit

Immunizations: 0-6 years old No charge without office visit; No charge without office visit; No charge without office visit; No charge without office visit; $20 with office visit 40%5 with office visit 30%5 with office visit $30 with office visit Age 7 and up 20% with no office visit; 40%5 30%5 $30 $20 with office visit

Maternity care: Dr. charges only; inpatient $307 for first office visit 40%5 30%5 No charge hospital copays will apply

1�

Effective September 1, 2008

HealthSelect1

Benefits In-Area

Non-Network

HMOs

HMOs not covered

Copayments for up to a 30-day supply of non-maintenance, short-term medications are $10 for Tier 1 drugs, $25 for Tier 2 drugs, and $40 for Tier 3 drugs. For up to a 30-day supply of maintenance, long-term medication, you will be

charged a retail maintenance copayment of $15 for Tier 1 drugs, $35 for Tier 2 drugs, and $55 for Tier 3 drugs.

*Participating pharmacies:

Non-participating pharmacies:

Mail Order:

For up to a 30-day supply, you will be reimbursed 60 percent of the lesser of the amount you pay for the prescription, minus your copayment OR the average wholesale price of the drug, plus a dispensing fee, minus your copayment. Deductible will be subtracted if not met.

Out-Of-Area2

If you order prescription drugs through the mail order program offered by your health plan, you pay the following copayments for up to a 90-day supply: $30 for Tier 1 drugs, $75 for Tier 2 drugs, and $120 for Tier 3 drugs. For Health-

Select participants, a list of maintenance medications identified by Caremark is posted on the ERS website.

Deductible: Each participant must pay a $50 annual deductible before copayments apply (for the plan year, September 1 to August 31).

Important:

Plan pays up to $500 per ear every three years.

Inpatient hospital $100/day copayment + 20% $100/day copayment + 40%5 $100/day copayment + 30% $100/day copayment,(semi-private room and ($500 copay max-up to 5 days ($500 copay max-up to 5 days ($500 copay max-up to 5 days ($500 copay max-up to 5 days board, and intensive per hospital stay, $1,500 per per hospital stay, $1,500 per per hospital stay, $1,500 per per hospital stay, $1,500 per care unit) year cap per person9) year cap per person9) year cap per person9) year cap per person)

Emergency care $100 + 20% (if admitted will 40%5 30%5 $100 (if admitted will apply to hospital copay) apply to hospital copay)

Outpatient surgery other $100 + 20% $100 + 40%5 $100 + 30%5 $100than in physician’s office

Skilled nursing facility 20%; 60-day max. 40%5; 60-day/ No charge; No charge; per calendar year9 $4,200 max. 60-day/$6,000 max. 60-day max. per calendar year9 per calendar year, per plan year no calendar year deductible9

Hospice 20%9/10 40%5/9/10 30% (no deductible)9/10 No charge

Home health care 20%9 40%; 100 visits/ No charge; 100 visits/ No charge $3,500 max. $5,000 max. per calendar year9 per calendar year; no calendar year deductible9

Hearing aids

Durable medical 20% 40%5 30%5 20%equipment

Ambulance services 20% 20%5 30%5 No charge

Network

Health Benefits Chart* of Out-of-Pocket Expenses

If you purchase a brand-name drug when a generic alternative is available (regardless of the reason), you will pay your generic copayment plus the cost difference between the brand-name and the generic drug.

Prescription Drugs

1. Benefits are paid on allowable amounts; using providers who contract with BCBSTX will protect you from liability for amounts over the allow-able amount.2. Out-of-Area applies to members living outside of Texas, retirees 65 and over, and disabled retirees with Medicare.3. Applies to calendar year, January 1-December 31; for treatment charges, one visit per calendar year.4. Does not include copayments.5. After payment of deductible.

6. Except when performed during an office visit.7. Copayment depends on whether treatment is given by PCP or specialist; any doctor who is not your PCP is considered a specialist at the higher copayment.8. Applies to plan year, September 1-August 31; for treatment charges, one visit per plan year.9. Preauthorization required.10. $18,000 lifetime maximum.

*Contact your health plan for a list of participating pharmacies.

1�

PLAN NAME PREMIUM STATE PAYS YOU PAY

HealthSelect of Texas

Member Only $360.54 $360.54 $0.00

Member & Spouse $772.60 $566.57 $206.03

Member & Child(ren) $636.44 $498.49 $137.95

Member & Family $1,048.50 $704.52 $343.98

Community First

Member Only $326.52 $326.52 $0.00

Member & Spouse $699.45 $512.99 $186.46

Member & Child(ren) $576.22 $451.37 $124.85

Member & Family $949.15 $637.84 $311.31

FirstCare (Amarillo)

Member Only $402.10 $402.10 $0.00

Member & Spouse $861.95 $632.03 $229.92

Member & Child(ren) $710.00 $556.05 $153.95

Member & Family $1,169.85 $785.98 $383.87

FirstCare (Abilene)

Member Only $402.90 $402.90 $0.00

Member & Spouse $863.67 $633.29 $230.38

Member & Child(ren) $711.42 $557.16 $154.26

Member & Family $1,172.19 $787.55 $384.64

FirstCare (Lubbock)

Member Only $402.90 $402.90 $0.00

Member & Spouse $863.67 $633.29 $230.38

Member & Child(ren) $711.42 $557.16 $154.26

Member & Family $1,172.19 $787.55 $384.64

FirstCare (Waco)

Member Only $390.54 $390.54 $0.00

Member & Spouse $837.01 $613.82 $223.28

Member & Child(ren) $689.54 $540.04 $149.50

Member & Family $1,136.10 $763.32 $372.78

Scott & White Health Plan

Member Only $377.03 $377.03 $0.00

Member & Spouse $808.05 $592.54 $215.51

Member & Child(ren) $665.63 $521.33 $144.30

Member & Family $1,096.65 $736.84 $359.81

Hea

lth P

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ium

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es •

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oyee

s E

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tive

Sep

tem

ber

1, 2

008

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are

mon

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In addition to the State contribution to your insurance

rates, the State also pays $2.23

per month of basic term life and AD&D coverage for active

employees and basic term life for

retirees, which are included in these

premiums.

1�

PLAN NAME PREMIUM STATE PAYS YOU PAY

HealthSelect of Texas

Member Only $360.54 $360.54 $0.00

Member & Spouse $772.60 $566.57 $206.03

Member & Child(ren) $636.44 $498.49 $137.95

Member & Family $1,048.50 $704.52 $343.98

Community First

Member Only $326.52 $326.52 $0.00

Member & Spouse $699.45 $512.99 $186.46

Member & Child(ren) $576.22 $451.37 $124.85

Member & Family $949.15 $637.84 $311.31

FirstCare (Amarillo)

Member Only $402.10 $402.10 $0.00

Member & Spouse $861.95 $632.03 $229.92

Member & Child(ren) $710.00 $556.05 $153.95

Member & Family $1,169.85 $785.98 $383.87

FirstCare (Abilene)

Member Only $402.90 $402.90 $0.00

Member & Spouse $863.67 $633.29 $230.38

Member & Child(ren) $711.42 $557.16 $154.26

Member & Family $1,172.19 $787.55 $384.64

FirstCare (Lubbock)

Member Only $402.90 $402.90 $0.00

Member & Spouse $863.67 $633.29 $230.38

Member & Child(ren) $711.42 $557.16 $154.26

Member & Family $1,172.19 $787.55 $384.64

FirstCare (Waco)

Member Only $390.54 $390.54 $0.00

Member & Spouse $837.01 $613.82 $223.28

Member & Child(ren) $689.54 $540.04 $149.50

Member & Family $1,136.10 $763.32 $372.78

Scott & White Health Plan

Member Only $377.03 $377.03 $0.00

Member & Spouse $808.05 $592.54 $215.51

Member & Child(ren) $665.63 $521.33 $144.30

Member & Family $1,096.65 $736.84 $359.81

PLAN NAME PREMIUM STATE PAYS YOU PAY

HealthSelect of Texas

Member Only $360.54 $180.28 $180.26

Member & Spouse $772.60 $283.30 $489.30

Member & Child(ren) $636.44 $249.26 $387.18

Member & Family $1,048.50 $352.27 $696.23

Community First

Member Only $326.52 $163.27 $163.25

Member & Spouse $699.45 $256.50 $442.95

Member & Child(ren) $576.22 $225.70 $350.52

Member & Family $949.15 $318.93 $630.22

FirstCare (Amarillo)

Member Only $402.10 $201.06 $201.04

Member & Spouse $861.95 $316.02 $545.93

Member & Child(ren) $710.00 $278.04 $431.96

Member & Family $1,169.85 $393.00 $776.85

FirstCare (Abilene)

Member Only $402.90 $201.46 $201.44

Member & Spouse $863.67 $316.65 $547.02

Member & Child(ren) $711.42 $278.59 $432.83

Member & Family $1,172.19 $393.78 $778.41

FirstCare (Lubbock)

Member Only $402.90 $201.46 $201.44

Member & Spouse $863.67 $316.65 $547.02

Member & Child(ren) $711.42 $278.59 $432.83

Member & Family $1,172.19 $393.78 $778.41

FirstCare (Waco)

Member Only $390.54 $195.28 $195.26

Member & Spouse $837.10 $306.92 $530.18

Member & Child(ren) $689.54 $270.03 $419.51

Member & Family $1,136.10 $381.67 $754.43

Scott & White Health Plan

Member Only $377.03 $188.52 $188.51

Member & Spouse $808.05 $296.28 $511.77

Member & Child(ren) $665.63 $260.67 $404.96

Member & Family $1,096.65 $368.43 $728.22

Health Prem

ium R

ates • Part-Tim

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ployees and G

raduate Students/Teaching Assistants

Effective Septem

ber 1, 2008 • All prem

iums are m

onthly

Premium includes $2.23 for basic

term life and AD&D coverage.

�0

State of Texas Dental Choice PlanSM*

(Administered by Government EmployeesHealth Association)

This Dental Plans Comparison Chart is only a summary of the benefits offered by the two dental plans. Please refer to the carriers’ materials for full descriptions of their benefits.

* Policy year is the 12-month period which begins on the effective date of your or your dependent’s State of Texas Dental Choice PlanSM coverage. You and your dependents may have different policy years and different 12-month periods.

Dental HMO(Administered by Aetna Dental, Inc.)

Choose any dentist.

May receive higher benefits if using a CONNECTION Dental Network dentist.

$22.08

$41.73

$49.90

$69.55

Policy Year 1 - $25 to $50 per individual per calendar year

Policy Year 2 - $0 to $50 per individual per calendar year

Policy Year 3 - $0 to $50 per individual per calendar year

Note: There may be separate deductibles for differ-ing classes of services. Family limit is three times the individual deductible per calendar year.

Policy Year 1 - You pay 30% to 100%

Policy Year 2 - You pay 10% to 50%

Policy Year 3 - You pay 0% to 50%

All services depend on service classification and whether a network dentist is used.

Policy Year 1 - $500

Policy Year 2 - $1,000

Policy Year 3 - $1,250 for most services $1,500 for orthodontic services; other services unlimited Policy Year 1 - $25 deductible plus 30% of cost

Policy Year 2 - 10% of cost

Policy Year 3 - No cost

Orthodontic services are only available to dependents age 19 or younger and are paid at Policy Year 2 if a network dentist is used; otherwise, benefits are not paid until Policy Year 3. $50 deductible plus 50% of cost. Maximum lifetime benefit: $1,500.

Dentists Monthly Premiums Employee/Retiree only

Employee/Retiree & Spouse

Employee/Retiree & Children

Employee/Retiree & Family

Deductibles

Coinsurance

Maximum Annual Benefit

Maximum Lifetime Benefit

Average cost of cleaning/oral exams

Average cost for Orthodontic Coverage

Dental Plans Comparison Chart

Must use participating dentist.

Note: Some participating dentists are not accepting new patients. Dentists are not required to stay on plan entire year.

$7.22

$13.00

$15.66

$19.27

None

Vary according to service and are listed in the “Schedule of Dental Benefits” booklet.

Specialty Dentistry – Dentist will charge you 75% of his/her usual fee. You are responsible for payment; Dental HMO pays nothing.

Note: Prior to starting treatment, discuss with your dentist the treatment plan and all charges. Unlimited

Unlimited Vary according to service and are listed in the “Schedule of Dental Benefits” booklet.

Orthodontic services performed by a general dentist listed in the directory with an “O” treatment code: child - $1,800, adult - $2,100. Orthodontic services performed by specialist: See coinsurance above.

�1

Optional Term Life* PremiumsnElection I=1xannualsalarynElection II=2xannualsalaryAfter the first 31 days of employment, Elections I and II require approval through evidence of insurability.

nElection III = 3 x annual salary nElection IV=4xannualsalaryElections III and IV always require ap-proval through evidence of insurability.

Beginning at age 70, Optional Term Life coverage is reduced to a percentage of your annual salary according to the table below:

Age 70 - 74 65% Age 75 - 79 40% Age 80 - 84 25% Age 85 - 89 15% Age 90 and over 10%

* Optional Term Life is limited to a maximum of $400,000 or four times your salary, whichever is less.

Rate per $1,000 of Annual SalaryAge Election I Election II Election III Election IV

15-19 $0.06 $0.12 $0.18 $0.2420-24 0.06 0.12 0.18 0.2425-29 0.06 0.12 0.18 0.2430-34 0.07 0.14 0.21 0.2835-39 0.07 0.14 0.21 0.2840-44 0.09 0.18 0.27 0.3645-49 0.13 0.26 0.39 0.5250-54 0.21 0.42 0.63 0.8455-59 0.37 0.74 1.11 1.4860-64 0.63 1.26 1.89 2.5265-69 1.03 2.06 3.09 4.1270-74 1.64 3.28 4.92 6.5675-79 2.68 5.36 8.04 10.7280-84 4.36 8.72 13.08 17.4485-89 7.54 15.08 22.62 30.16

90+ 11.74 23.48 35.22 46.96

Dependent Term Life Short- and Long-term Disability Income Premiums$1.38/month

(includes $5,000 term life with AD&D coverage per dependent)

Short-term DisabilityIncome $0.32/$100 of monthly salaryLong-term Disability Income $0.70/$100 of monthly salary

Voluntary Accidental Death and Dismemberment (Voluntary AD&D) Premiums You may apply for VoluntaryAD&D coverage according to the following table: Employee Only

$0.02/$1,000 of coverage

Employee & Family$0.04/$1,000 of coverage

For more detailed informa-tion about optional cover-age benefits, see your ben-efits books available online at the ERS website.

Employee’s Age Minimum Coverage

Maximum Coverage

Minimum Increments

Under age 70 $10,000 $200,000 $5,00070 - 74 6,500 130,000 3,25075 - 79 4,000 80,000 2,00080 - 84 2,500 50,000 1,25085 - 89 1,500 30,000 750

90+ 1,000 20,000 500

Optional Coverage Rates—Employees Effective September 1, 2008 • All premiums are monthly

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FSA - HealthEmployee Dependents Total Cost

Prescriptions $ $ $Over-the-counter medicationCopayments for doctor visitsPlanned medical proceduresDental CareRoutineOrthodontiaProceduresVision CareVision screeningGlassesContacts & solutionDurable medical equipmentFees $Administrative fee $ 24.00Enter $15 debit card fee (if you elect the card) $

Total annual health care estimate $Divide by the number of months worked

Estimated monthly contribution $12-month employee minimum: $15 per month, maximum: $416 per month; 9-month employee mini-mum: $20 per month, maximum: $555 per month. Choose 9 months if you are paid 9, 10, or 11 months out of the year.

• Funds are available on the first day of enrollment

• You cannot drop your FSA-Health or decrease your contributions un-less you are on a leave of absence protected by the Family Medical Leave Act (FMLA) or have a QLE that involves a death.

• You may increase your contributions with a QLE if the change is consistent with the event.

FSA - Day CareActivity Monthly

CostNumber of

monthsNumber

of children/adults

Total Cost

Day care for a child age 6 or under not in first grade $ $Before school care for child under age 13After school care for child under age 13Summer care/day camp for child under age 13Adult day careFees $Administrative fee $ 24.00Enter $15 debit card fee (if you elect the card) $

Total annual day care care estimate $Divide by the number of months worked

Estimated monthly contribution $12-month employee minimum: $15 per month, maximum: $416 per month; 9-month employee minimum: $20 per month, maximum: $555 per month. Choose 9 months if you are paid 9, 10, or 11 months out of the year. Note: If you have both a FSA-Health and FSA-Day Care, only include the $15 debit card fee for FSA-Health.

• You may only use the available balance in your FSA-day Care account each month

• You may change your contributions with a QLE if the change is consistent with the event.

• day care services must allow you to be gainfully employed or

actively seeking gainful employment. If you are married, your spouse must be:

• gainfully employed or seeking gainful employment, • a full-time student, or • physically or mentally disabled.

How much should I contribute to TexFlex?

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July 28 - AustinAustin Community College5930 Middle Fiskville Rd., Lobby

*July 28 - AustinTexas Dept. of Transportation200 E. RiversideRm. 1A.1 and Rm.1A.2

July 29 - AustinTexas Health & Human Services Commission11209 Metric Blvd.Bldg. H, Lone Star Rm.

July 29 - AustinTeacher Retirement System1000 Red River St., Cafeteria

July 30 - AustinTexas Education Agency1701 N. Congress Ave.Travis Bldg., Rm 1-104

July 30 - AustinTexas Dept. of Public Safety5805 N. Lamar Blvd., Cafeteria

July 31 - AustinTexas Commission on Environmental Quality12100 Park 35 Cir., Bldg. A

July 31 - AustinTexas Dept. of Insurance 7551 Metro Center Dr.Public Hearing Rm.

August 1 - AustinTexas Legislative Council 1501 N. Congress, REJ Conf. Ctr.

August 1 - AustinTexas Lottery Commission611 E. 6th St., Aud.

August 4 - Corpus ChristiTexas Dept. of Transportation 1701 S. Padre Island Dr., Bldg. 2

August 4 - DallasDallas Co. Comm. College District1402 Corinth, Hoblitzelle Aud.

August 4 - AustinTexas Health & Human Services Commission4900 North Lamar, Rm. 1430Brown Heatly Bldg.

*Fair is from 9 a.m. to 1 p.m.

August 5 - MesquiteEastfield College3737 Motley Dr., F210

August 5 - LaredoTexas Dept. of Transportation1817 Bob Bullock LoopTraining Rm.

August 5 - AustinTexas Dept. of Insurance 333 Guadalupe St., Lobby

August 6 - Fort WorthUniv. of North Texas Health Science Center3500 Camp Bowie Blvd.Main Admin. Bldg. (EAD) Atrium

August 6 - PharrTexas Dept. of TransportationPharr District Complex600 W. Exp 83, Conf. Center

August 6 - AustinOffice of the Attorney General 300 W. 15th St., RotundaWilliam P. Clements Bldg.

August 7 - Wichita FallsTexas Dept. of Transportation1601 Southwest Pkwy.Training Center

August 7 - HarlingenTexas State Technical College1902 N. Loop 499, Orientation Rm. Learning Resource Center

August 7 - AustinTexas Parks and Wildlife Dept.4200 Smith School Rd., Lobby

August 8 - Grand PrairieTexas Health & Human Services Commission801 W. FreewayBank of America Bldg. Training Ctr., 2nd Floor

August 8 - McAllenSouth Texas College 3201 W. Pecan Blvd., Cafeteria

*August 8 - AustinTexas Dept. of TransportationCamp Hubbard4000 Jackson Ave.Bldg. 1, Lone Star Rm.

August 11 - AlpineSul Ross UniversityUniversity Center, Ave. BCenter 2nd Floor Foyer

August 11 - San AngeloTexas Dept. of Transportation4502 Knickerbocker Rd.Training Center

August 11 - San AntonioTexas Dept. of Transportation4615 NW Loop 410 Bldg. 2, 1st Floor

August 12 - El PasoEl Paso Community College9050 Viscount, Bldg. AAdmin. Service Center, Lobby

August 12 - San AntonioSan Antonio College1300 San Pedro Ave.Loftin Student Ctr., Fiesta Rm. 156

August 12 - AbileneTexas Health & Human Services Commission4601 S. 1st, K101-103

August 13 - OdessaTexas Dept. of Transportation 3901 E. Hwy. 80Main Bldg., Large Conf. Rm.

August 13 - San AntonioSt. Philips College1801 Martin Luther King Dr.Watson Fine Arts Center Heritage Rm.

August 13 - BrownwoodTexas Dept. of Transportation 2495 Hwy. 183 N., Assembly Rm.

August 14 - LubbockTexas Tech University17th & UniversityMerket Alumni Ctr. Lobby

August 14 - WacoTexas State Technical College3801 Campus Dr.John B. Connally Bldg.

August 15 - AmarilloTexas Dept. of Transportation5715 Canyon Dr., Bldg. H

August 15 - TylerTyler Junior College1530 S. Southwest Loop 323Regional Training & Dev. CenterLobby

August 15 - San MarcosTexas State University601 University Dr.J.C. Kellam Bldg., Rm. 1100

August 18 - ConroeTexas Dept. of Transportation901 N. FM 3083 E., Reception Area

August 18 - GatesvilleTexas Dept. of Criminal Justice1401 State School Rd. Live Oak Rm.

August 19 - DentonTexas Woman’s University303 Administration Dr.Hubbard Hall Bldg., South Foyer

August 19 - HoustonTexas Dept. of Transportation 7600 Washington Ave. Conf. Rm. 105

August 20 - AustinTexas Dept. of Agriculture1700 N. Congress Ave., Rm. 170Stephen F. Austin Bldg.

August 20 - AtlantaTexas Dept. of Transportation701 Main St., Rm. 26

August 20 - HoustonHouston Community College3100 Main St., 2nd Floor Aud.

August 21 - AustinEmployees Retirement System1801 Brazos, Lobby

August 21 - GalvestonTexas Dept. of TransportationFerry Bldg. at the end of Ferry Rd.Break Rm.

August 22 - HoustonTexas Health & Human Services Commission5425 Polk St., 4th Floor Conf. Rms.Elias Ramirez State Office Bldg.

For more information, attend a Summer Enrollment fairAll Summer Enrollment fairs are 9 a.m. to noon unless otherwise noted. Fairs are open to employees

and their family members. Presentations begin at 10 a.m. and last about 45 minutes. Maps are on the ERS website. At some fairs, staff will be available to help you use ERS OnLine.

If you don’t need to make any changes to your benefits, you don’t need to attend a fair, go on ERS OnLine, or call ERS. Your current benefit elections will continue in Plan Year 2009.

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Employees Retirement System of TexasCustomer Benefits Division

P.O. Box 13207Austin, TX 78711-3207

Summer Enrollment 2008

July 28 - August 22www.ers.state.tx.us

Time to planfor your future