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Lower Deductibles, Bigger Network Highlight CIGNA Move

June 2007

A substantial decrease in medical deductibles is one of several promising features in the Seafarers Health and Benefits Plan’s (SHBP) upcoming change to CIGNA HealthCare as the Plan’s network services provider. As previously reported, the switch takes effect July 1, 2007 and does not change Seafarers’ benefits. Participants are covered under the First Health Network through June 30. The SHBP Board of Trustees last month sent a letter to all active member participants spelling out details of the change. The letter is available in PDF format by clicking HERE. Eligible pensioners whose primary coverage is through Medicare will receive a different explanatory letter (also available in PDF format HERE) because they won’t participate in CIGNA. However, if such retirees have eligible dependents not covered by Medicare, those dependents will be covered through CIGNA. The letter to active members in part states, “The Trustees completed an exhaustive search to improve network access, enhance access to state-of-the-art programs and ensure that quality service would be provided to the participants and their families. At the same time, it was critical that the new network provider be able to provide greater network discounts and care management savings to ensure the Plan’s fiscal integrity during these times that continue to challenge benefit plans throughout the country. “This change to CIGNA is a very positive one for the participants and the Plan. Please be assured that the medical benefits and benefit levels remain the same, while reducing Plan deductibles as of January 1, 2008. Eligible participants, as defined in the Rules and Regulations of the Plan, who use a provider or hospital within the CIGNA HealthCare Network, will incur no balance billing; however, claims will still continue to be processed and paid in accordance with the Rules and Regulations of the Plan. If your provider or facility is not in the CIGNA HealthCare network, then your claims will be processed as non-network claims as they have in the past.” ###