January 2008

Contents

1. Second quarter 2008 rate sheets/Choiceware update

2. Proof of insurance for Mass. residents

3. CIGNA introduces step therapy prescription drug program

4. Change in agent commission pay date

5. Preventive care guidelines

Second quarter rate sheets and choiceware rates available for CBIA Health Connections and CBIA Health Connections 2

The most recent Health Connections rates are available.

Health Connections Rates

Health Connections 2 Rates

Log in to the agent Web site to get your Choiceware update.

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Proof of health insurance forms to be mailed to Massachusetts residents for 2007 tax prep

The new Commonwealth of Massachusetts health care reform laws require Massachusetts residents over 18 to have health coverage (by July 1, 2007) and demonstrate proof (a 1099-HC form) of that health insurance when filing their 2007 Massachusetts state income tax return. Failure to provide proof of health insurance will result in the loss of the 2007 state personal exemption on the Massachusetts state tax return.

CBIA has confirmed that CIGNA, ConnectiCare, Health Net, Oxford (UnitedHealthcare) and Anthem (for Medicare) will send 1099-HC forms, certifying health coverage during 2007, to all Massachusetts residents covered by their plans in 2007.

Additional information about the 1099-HC forms and the new health care reform law can be found at www.mahealthconnector.org. Questions related to filing state tax returns should be directed to the Massachusetts Department of Revenue at www.mass.gov/dor or to a tax advisor. Subscribers who reside in Massachusetts may also direct any questions to their health plan’s member services department.

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CIGNA introduces prescription drug prior authorization/step therapy program

Beginning Jan. 1, 2008, CIGNA introduced step therapy, a new prior authorization program that encourages the use of generic and low-cost brand medications. The program will become effective on each company’s 2008 renewal date, and impacts only medications used to treat high blood pressure, high cholesterol and stomach acid conditions. CIGNA enrollees will receive communications directly from CIGNA regarding prior authorization/step therapy if their diagnosis and medication meets the qualifications.

Step therapy requires a member to try a “first step” medication, generally a generic drug, before moving to a higher cost drug. A physician may request prior authorization for second or third step medication, if medically necessary.

CIGNA is introducing this program because the increased availability of generic and low-cost brand medications offers a significant opportunity to manage overall prescription drug costs while maintaining quality health care for participants. In addition, participants using generic and low-cost brand medications benefit by saving money through lower out-of-pocket costs.

CIGNA will notify impacted members directly over a 3 month period following their group's renewal. You can view details on CIGNA's step therapy program here. View a sample member letter that is mailed when a diagnosis and medication meet the step therapy qualifications.

ConnectiCare, Health Net, and Oxford have a prior authorization requirement for certain medications. Use the following links to view the medication lists.

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Reminder: Change in commission pay date

Effective January 1, we implemented a change in the day our monthly commissions are run. The CBIA Health Connections monthly commissions are now run on the 6^th day of every month and mailed out the following business day.

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Preventive care guidelines available online

We've created quick reference pieces for a member to determine preventive care coverage for the HSA-compatible and POS 2000 plans. You can view the documents here (below the plan summaries).

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If you have any questions regarding the contents of this Agent Update, please contact your CBIA Sales Team.