Annual Notice of Change & Special Election Period

The Annual Notice of Change (ANOC) provides beneficiaries with important information about changes in their benefit premiums, co-pays, and formularies for the upcoming calendar year. For plan year 2007, the majority of PDPs sent their ANOCs to beneficiaries before the start of the AEP. However, five Part D organizations were late in sending their ANOC to approximately 207,300 beneficiaries who are geographically dispersed across the country, as noted in the chart below.

Plan Name	Number of Affected Beneficiaries by Plan*	States with Affected Beneficiaries
ElderHealth	300	Washington, D.C., Delaware, Maryland and Texas
HealthNet	2,200	Connecticut, Massachusetts, Rhode Island and Vermont
Torchmark	9,800	New York
United	189,000	All States
WellPoint	6,000	Missouri and Kansas

*Totals have been rounded to the nearest hundred.

CMS is giving beneficiaries who received ANOCs after the deadline additional time to review and evaluate their existing plan’s changes for 2007; and make an informed choice to remain in their current plan, or switch to a new one in 2007. This SEP runs from January 1 to February 14, 2007, and allows affected beneficiaries one opportunity during this time to change plans if they so choose. An enrollment request made during this period will take effect on the first day of the month after the enrollment election is made.

All affected non-LIS members have received letters from their 2006 plan describing the SEP. Attached is a model letter sent to beneficiaries from their plans. The letter has a special code in the top right-hand corner so that beneficiaries can reference the letter when contacting customer service staff, a newly selected sponsor, or CMS’ 1-800-MEDICARE staff as evidence that they qualify for this SEP if they would like to change their plan.

Attachment A:

Model Beneficiary Notice - Special Election Period

SEP-A06

DATE: December XX, 2006

Dear (member’s name),

Every year, (name of plan) is required to provide our members with information on how benefits and costs in our plan will change for the upcoming year. This information helps you decide whether to stay in our plan, or switch to another plan, during the Medicare annual open enrollment period that starts November 15.

Generally, people with Medicare have until December 31, 2006, to choose their plan for 2007. However, because we did not send this information to you until after November 15, you will have more time to consider your options and choose a plan. You now have until February 14, 2007 to change plans, if you so choose.

Please keep this letter. It is proof that you have a special period, from January 1 to February 14, 2007 to enroll in other Medicare health plans or Medicare prescription drug plans.

If you are satisfied with the benefits that we will provide to you in 2007, you don’t need to do anything to remain a member of our plan in 2007. However, if you are interested in other Medicare health plans or prescription drug plans available in your area, you can compare the options by visiting www.medicare.gov on the web or by calling 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048. If you decide you would like to join a different plan, contact the plan you are interested in to find out more information and how to enroll. Your enrollment will begin the first of the month after your plan gets your request to join.

We regret any inconvenience that the delay in our mailing may have caused you. If you need more information, please call our Member Services Department toll-free at (insert number). TTY users may call (insert number). You can speak to someone at this number, Monday through Friday, (insert hours). Tell the Customer Service Representative that you got this letter. You can also call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.

Thank you.