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To: Austin Firefighter Retirees
From: Bill Stefka, Administrator
Date: March 4, 2005
Re: Amil HMO Coverage Change To Blue Cross Blue Shield

Dear Retirees:

In our communication with the City of Austin, their basic message is that they are sending word out soon to the retirees about the above. They also are emphasizing that the process should be fairly smooth and for our retirees not to panic. The following is their message we received at the pension office earlier today:

To: All City Employees
From: City of Austin's Public Information Office
Subject: Amil HMO Coverage Change
Sent: Thursday, March 3, 2005

"Amil HMO informed the City on Wednesday, March 2, 2005, that the medical coverage they contractually provide will end on March 31, 2005. Amil is leaving the Texas health insurance/HMO market. Please do not be alarmed by this news. The City is already working to make sure your health care needs are not disrupted. Amil has entered into an agreement with Blue Cross Blue Shield of Texas (BCBSTX) to continue providing services to its clients beginning April 1, 2005. We will be working with BCBSTX to ensure that there is little or no change to coverage, premiums or health care providers. A BCBSTX provider directory is available for viewing online at www.bcbstx.com. Employees currently enrolled in Amil will receive further information as details are worked out. Please be assured that Amil will continue to process claims for any covered service rendered through March 31, 2005. The City will work to make this transition as smooth as possible. You will be notified of the steps, if any, you will need to take to continue your coverage.

Please contact Employee Services at 974-3284 if you have any additional questions."

Our retirees who participate in the Amil plan should be receiving a communication from the City of Austin early next week on this matter. Please let us know if we can be of further assistance.

Sincerely,

William E. Stefka, Administrator
Austin Firefighters Pension Plan