As of January 1, 2005, Empire offers even more competitive pricing on our most popular HMO plan designs — our $20, $25, and $25/$40 co-pay options. And don't forget, downstate small group HMO rates are now different than large group HMO rates. All small group rates are available through your Empire sales rep, Broker Online Services at www.empireblue.com and Health Search.

Empire Broker Online Services now offers added timesaving functions, including:

• Renewals — View and submit upcoming group renewals. Modify existing plan designs or run quotes for new plans, as well as view lower cost options for each. Our redesign has made the entire renewal process simpler — with less paperwork and 24/7 access to the information you need.



• Multi-Region quoting — Simplify your efforts by creating only one HMO or POS quote for a group with employees residing in more than one of our five rating regions. This one quote contains detailed rates by both region and tier, as well as customized benefit information. Plus, you can e-mail this information directly to groups or you can print and mail the quote proposals.

Broker Online Services. Save time, do it online.
Access a self-running, fully narrated presentation to see how these features can expedite your work. The presentation includes a 5-minute tutorial on how to use the new features through a step-by-step explanation.

Please take a moment to review the demo — go to www.empireblue.com and click on the "Brokers" tab. Remember to turn the volume on.

New security mandates for the Health Insurance Portability and Accountability Act (HIPAA) requires that Empire now obtain an updated Business Associate Agreement (BAA) from our brokers and brokerage firms. HIPAA is the federal legislation that sets standards for the privacy and security of health information. The BAA will permit you to perform or assist in performing functions or activities on our behalf involving the use and/or disclosure of member information.

Stay up-to-date on your business agreement.
If you did not reply to our October e-mail request for an updated BAA, you should have received a BAA in the mail. Please complete and return this agreement to us as soon as possible. This will ensure your status is updated in our records.

If you have any questions, feel free to contact us.
If you did not respond to the e-mail and have not received the agreement in the mail, or if you have any questions or concerns about the agreement, contact us at 1-877-222-7666, Monday through Friday, 8:30 a.m. to 5 p.m. EST, and press option 3 to be connected with the Commission and Licensing Department.

We appreciate your prompt attention to this matter.

Premium Care Voluntary PPO Dental plan offers enriched dental plans at no extra cost to employers.
Starting January 2005, Empire will offer the Premium Care Voluntary PPO to employers with 51+ eligible employees. Employers do not need to contribute towards the dental plan, and only five employees need to enroll. By offering this voluntary dental plan, employers can provide a valuable benefit that otherwise might not be fiscally viable.

Choice and Flexibility.
Employers can customize a voluntary dental plan to meets the needs of their employees, with the choice of deductibles and coinsurance levels, annual coverage maximums and waiting periods of 0 – 24 months for certain classes of services — another way for employers to lower the premiums that their employees will have to pay.

Value and Simplicity.
Members maintain all of the cost-savings and high-quality benefits of our Premium Care PPO network, including 6,400+ local providers and 49,000+ national providers. Employers and employees will also enjoy the ease of integrating their medical and dental coverage with Empire — with one ID card, and one place for enrollment, customer service and more.

For more information on Empire's Premium Care Voluntary PPO, or any of Empire's other dental plans, please visit www.empireblue.com.

One of our goals is to keep track of the levels of satisfaction found between GBAs and their Empire Account Manager and Service Representatives. From these results, we aim to identify areas of improvement such as procedures and communications with these audiences.

More time for your customers.
The results from the first effort (surveying groups with effective dates during 1Q05) showed an overall satisfaction of 97.4%. And 94% indicated that they were likely to renew. Higher customer satisfaction ratings mean that you can spend less time on problems and more time on helping your groups.

Keeping you in the loop.
Currently, we are conducting quarterly surveys to gauge satisfaction with the support we provide to employer contacts in the 50+ groups. We will continue to keep you posted as we receive further survey results, and let you know about any initiatives we embark on as a result of our customers' input.

Empire members with children who are full-time college students must submit a completed Student Coverage Questionnaire to ensure uninterrupted coverage into the 2005 calendar year.

Paperwork is easily available online.
GBAs can find a copy of the questionnaire in their GBA Handbook, and it is also available to you or to members under Forms and Documents in the Member Library at www.empireblue.com. Members must complete the form to include the school's name and address, type of school and enrollment details, and fax it to Empire at 1-800-780-1224 with either:

• certification by the college registrar's office; or



• a tuition bill showing full-time status in 2005, or school letterhead stating full-time status, credits and enrollment period for 2005 — signed by the registrar.

Members must resubmit documentation each year.
Employers will need to remind employees of this necessary annual submission. But it is the employee who is responsible for resubmitting proof before the start of every calendar year — regardless of when documentation was submitted for the current year — to ensure uninterrupted coverage as a dependent full-time student.

Note: When a member's dependent is no longer eligible for health plan coverage, employers should notify the member that extended coverage is possible under COBRA or they can direct the member to apply for Direct Payment Coverage through Empire.

Beginning in January 2005, Empire will automatically discontinue coverage for all dependents who reach the maximum coverage age as defined under the group's benefit plan and are no longer eligible for coverage*. In those cases, and only where applicable:

• the corresponding account contract will automatically be downgraded to reflect this change



• the account invoices will reflect the premium change



• Empire will generate and mail a HIPAA Certificate of Prior Health Plan Coverage to the newly ineligible dependent at the time of termination.

Please remind employers of this information.
Dependent children are covered until December 31 of the year in which they are 19 years old, marry, work full-time or cease to be full-time students, at which time Empire automatically discontinues their coverage.

The fastest way to notify Empire of membership changes, additions and terminations is through Broker Online Services, at www.empireblue.com. Registration is easy, and the changes you make are processed in real time and take effect immediately.

*This change DOES NOT apply to mentally challenged, developmentally disabled, mentally ill or physically handicapped dependents, or to those dependents that may qualify as college students. See corresponding article regarding college student eligibility.