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November 17, 2009
Previously Announced 2010 Rates for High Deductible Health Plans Will Be Reduced by 10%
 
After analyzing new information regarding rate differentials between standard PPO plans and High Deductible Health Plans (HDHPs), Principal determined that the rate for the HDHP Plans (Plans 781, 785 & 788) should be reduced.  The Trustees took this information under advisement and have made the decision to lower the rates for HDHP Plans by 10%.
 
Please note:  This reduction will be made to the newly released 2010 rates, not the prior 2009 rates. 

The Statewide Benefit Cooperative (SBC) apologizes for the late notice, but the Trustees felt it was imperative that groups pay the correct and fair premium, even it means revising previously published rates. 
Question & Answers
 
 
Q. Why is the rate being adjusted so late in the year?
 
A. Principal acquired new actuarial information that was not available when the original 2010 rates were set.  Because the HDHP plans are relatively new and have a much smaller participation than the other SBC plans, this new information had a greater impact on determining the correct rates.
 
Q. Are the rates for the other plans correct?
 
A. Principal has reviewed the other plans and is confident that the 2010 rates are correct.  Because these plans have been in existence for quite some time and have an extensive claim history, the underwriters have a greater amount of reliable data to use in setting their rates.  In addition, a complete and thorough review of all plan differentials, including the HDHP plans, is scheduled for completion prior to the 2011 renewals.
 
Q. When does the revised rate for the HDHP Plans take effect?
 
A. January 1, 2010
 
Q. If my co-op will be offering this plan next year, do I have to do anything to get the lower rate?
 
A. No - the rate will be adjusted automatically and reflected on your first bill from Principal.
 
Q. Is it too late to switch to a HDHP Plan if we have not already made arrangements to do so?
 
A. No - but we encourage you to make this decision as soon as possible to ensure the change can be completed timely and accurately.  Please use the contact information below to learn more. 
 
Q. Who should I contact if I have questions?
 
A.  Please call or email Carol Jobe, Nan Gill or Judy Nordhoff at Principal.  Their contact information can be found in the blue bar on the right.
Links
Thank You for Your Understanding
 
We apologize for any inconvenience this late change may cause, but in these tough economic times we hope the rate reduction will be welcome news.
Questions?

If you have any questions, please use the contact information below. 
 
Principal Toll Free Number:
 
1-800-331-3287
 
Carol Jobe
ext. 43812
 
Nan Gill
ext. 43870
 
Judy Nordhoff
ext. 43801