Important Notice from Holston Conference About Your Prescription Drug Coverage and Medicare

Please read this notice carefully and keep it where you can find it. This notice has information about your current prescription drug coverage with the Holston Annual Conference and the new prescription drug coverage available January 1, 2006, for people with Medicare.

1. Starting January 1, 2006, new Medicare prescription drug coverage (Medicare D) will be available to everyone with Medicare.

2. The Holston Conference Board of Pensions has determined that the prescription drug coverage offered by the Blue Cross and Blue Shield of Tennessee is expected to pay out as much or more than the standard Medicare prescription drug coverage will pay. Thus, it is our recommendation that Holston Conference Retirees should keep their existing coverage and not enroll in Medicare D.

3. If you do decide to enroll in a Medicare prescription drug plan and drop your Holston Conference prescription drug coverage, be aware that you may not be able to get this coverage back.

• Your current coverage pays for other health expenses, in addition to prescription drugs, and you will not be eligible to receive all of your current health and prescription drug benefits if you choose to enroll in a Medicare prescription drug plan.
  
  
• If you drop or lose your coverage with Holston Conference and do not enroll in Medicare prescription drug coverage after your current coverage ends, you may pay more to enroll in Medicare prescription drug coverage later. If after May 15, 2006, you go 63 days or longer without prescription drug coverage that is at least as good as Medicare's prescription drug coverage, your monthly premium will go up at least 1% per month for every month after May 15, 2006 that you did not have that coverage. For example, if you go nineteen months without coverage, your premium will always be at least 19% higher than what most other people pay. You will have to pay this higher premium as long as you have Medicare coverage. In addition, you may have to wait until next November to enroll.
  

For more information about this notice or your current prescription drug coverage...

• Contact Kathy S. Parker, Pension/Health Administrator, at 423-928-2156 Ext. 232
  

More detailed information about Medicare plans that offer prescription drug coverage will be available in October 2005 in the "Medicare & You 2006" handbook. Medicare will mail you a copy of the handbook. You may also be contacted directly by Medicare prescription drug plans. You can also get more information about Medicare prescription drug plans from these places:

• Visit www.medicare.gov for personalized help.
  
• Call your State Health Insurance Assistance Program (see your copy of the "Medicare & You" handbook for their telephone number).
  
• Call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.
  
  

The Holston Conference Board of Pensions
October 4, 2005