Important changes are coming in 2012, and we at Blue Cross & Blue Shield of Rhode Island (BCBSRI) are committed to helping you, our valued customer, stay informed. In the coming months, we’ll be introducing a new portfolio of health plans for small businesses and many other enhancements to our products and services. Please take a few minutes to read about these changes, which are outlined in the following pages.Topics include:

1. Our New Plan Portfolio

• VantageBlue• BlueCHiP for Healthy Options• BlueSolutions for HSA • Healthmate Coast-to-Coast

2. Plan-Year vs. Calendar-Year Benefit Calculations

3. Online Enrollment Capabilities with BlueEnroll

4. Understanding Deductibles and Out-of-pocket Maximums

A New Plan Portfolio in 2012Advance Notification

Starting with groups that renewed on April 1, 2011, and going forward, we will be transitioning all small employers into our new plans upon renewal. You can either choose a plan from our new portfolio or let us move you into the plan that is most comparable to the coverage you have now. In the next few weeks, you will receive your renewal kit with detailed plan information and instructions for choosing a plan. In the meantime, please take a look at the high-level overview of our new plans below.

Our newest plans empower members to be more involved in their healthcare by offering special incentives for healthy living, low copayments for certain drugs used to treat chronic conditions, and programs that help people quit smoking, lose weight, and more.

This option features Wellness Requirements that encourage

employees to take responsibility for their health. It complies with the Rhode Island Office of the Health Insurance Commissioner’s requirements for a HEALTHpact plan.

Employers who want to keep premiums

manageable while still offering comprehensive benefits will find this plan to be a good fit. It features higher deductibles and the ability to set up an interest-bearing, tax-advantaged health savings account (HSA), which will allow employees to save money for medical expenses.

This traditional deductible plan will help employers

control premiums while still providing employees full coverage for many services once the deductible is met.

A Guide to Renewal

Finding the right health coverage may be the biggest challenge facing Rhode Island’s small businesses today. We understand this and we’re committed to offering the quality, affordable plans you and your employees expect.

In the coming months, we will introduce you to our new menu of plans, designed specifically for small businesses. We’re excited about our new portfolio, and we think you will be, too. Many of our plans include features and benefits

you’ve asked for, and our new VantageBlue plans include special incentives and programs that are at the forefront of healthcare innovation.

We’re confident we can help you find the right fit for

both your business and your employees. As you’ll see, our new portfolio provides a mix of plans, from traditional to progressive. No matter which you choose, you can be sure your employees are getting quality coverage.

We look forward to working with you throughout this transition process, and we promise to keep you informed every step of the way. Together, we can transform healthcare for Rhode Islanders for generations to come.

Our New Portfolio

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Introducing This new, online enrollment tool will save you paper—and time. With BlueEnroll* you can add new employees, generate detailed reports, and perform many other important administrative functions all electronically. This system will be available to you approximately two weeks before your plan’s renewal date and can be accessed 24 hours a day, anywhere there is web access. And, as always, you can rely on us to provide information and support to help you utilize this important new tool. *If you do not currently perform your own enrollment and administrative functions, this does not apply.

Understanding Deductibles and Out-of-pocket Maximums

All of our new plans feature deductibles and out-of-pocket maximums, which help keep premiums affordable. Simply put, a plan’s deductible is the amount the member must pay before receiving covered services. While many preventive services are covered in full, and others are covered with a copayment, some healthcare benefits are not

covered until the deductible is met by the member. The out-of-pocket maximum protects members from very large healthcare costs should they experience a serious illness or injury. It does this by capping the amount the member must pay in any one calendar or plan year. For some plans, the deductible is also applied to the out-of-pocket maximum.

With many of our plans, you will have the option to offer a consumer spending account, such as an employer-funded health reimbursement arrangement (HRA), to help employees meet the deductible. This may work well if your employees have not had a deductible plan in the past.

Our New Portfolio Plan-Year vs. Calendar-Year Benefit CalculationsIn response to requests from our customers, we’re now offering you the option of choosing how you want your plan’s benefits, deductible, and out-of-pocket maximum calculated: on a plan-year or calendar-year basis. Please see the enclosed checklist to learn more about the timeline for making this important decision. If no response is received by your decision date, BCBSRI will automatically convert your group to a plan-year calculation to begin upon your 2012 renewal. Your employees’ benefits will be reset every year upon your renewal.

500 Exchange Street • Providence, RI 02903-2699Blue Cross & Blue Shield of Rhode Island is an independent licensee of the Blue Cross and Blue Shield Association.

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