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Document Outline

Introduction
Plain Language
Inspector General Advisory
Section 1. Facts about this HMO plan

How we pay providers
Your Rights
Service Area

Section 2. How we change for 2002

Program-wide changes
Changes to this Plan

Section 3. How you get care

Identification cards
Where you get covered care

€ Plan providers
€ Plan facilities

What you must do to get covered care

€ Primary care
€ Specialty care
€ Hospital care

Circumstances beyond our control
Services requiring our prior approval

Section 4. Your costs for covered services

€ Copayments
€ Deductible
€ Coinsurance
Your out-of-pocket maximum

Section 5. Benefits

Overview
(a) Medical services and supplies provided by physicians and other health care professionals
(b) Surgical and anesthesia services provided by physicians and other health care professionals
(c) Services provided by a hospital or other facility, and ambulance services
(d) Emergency services/accidents
(e) Mental health and substance abuse benefits
(f) Prescription drug benefits
(g) Special features

€ Flexible benefits option
€ Services for deaf and hearing impaired
€ Travel benefits/services overseas

(h) Dental benefits
(i) Non-FEHB benefits available to Plan members

Section 6. General exclusions … things we dont cover
Section 7. Filing a claim for covered services
Section 8. The disputed claims process
Section 9. Coordinating benefits with other coverage

When you have...

€ Other health coverage
€ Original Medicare
€ Medicare managed care plan

TRICARE/Workers' Compensation/Medicaid
Other Government agencies
When others are responsible for injuries

Section 10. Definitions of terms we use in this brochure
Section 11. FEHB facts

Coverage information

€ No pre-existing condition limitation
€ Where you get information about enrolling in the FEHB Program
€ Types of coverage available for you and your family
€ When benefits and premiums start
€ Your medical and claims records are confidential
€ When you retire

When you lose benefits

€ When FEHB coverage ends
€ Spouse equity coverage
€ Temporary Continuation of Coverage (TCC)
€ Converting to individual coverage
€ Getting a Certificate of Group Health Plan Coverage

Long term insurance is coming later in 2002
Index
Summary of benefits
Rates

Pages 1--52 from Preferred Care

Page 1 2

2002 Preferred Care 1 Section
Preferred Care 2002
Serving: Greater Rochester and Surrounding Counties
Enrollment in this Plan is limited. You must live or work
in our Geographic service area to enroll.
See page 7 for requirements.

Enrollment codes for this Plan:
GV1 Self Only
GV2 Self and Family

A Health Maintenance Organization
This Plan has excellent accreditation
from the NCQA. See the 2002 Guide
for more information on NCQA.

http:// www. preferredcare. org

RI 73-467
For changes
in benef
its

see page
8. 1
1 Page 2 3
Section 2 2002 Preferred Care 2
2 Page 3 4

Table of Contents

Table of Contents 3
3 Page 4 5

2002 Preferred Care 5 Section
Introduction
Preferred Care
259 Monroe Avenue
Rochester, New York 14607

This brochure describes the benefits of Preferred Care under our contract ( CS 2371) with the Office of Personnel
Management ( OPM) , as authorized by the Federal Employees Health Benefits law. This brochure is the official
statement of benefits. No oral statement can modify or otherwise affect the benefits, limitations, and exclusions of this
brochure.

A person enrolled in this Plan is entitled to the benefits described in this brochure. If you are enrolled for Self and
Family coverage, each eligible family member is also entitled to these benefits. You do not have a right to benefits that
were available before January 1, 2002, unless those benefits are also shown in this brochure.

OPM negotiates benefits and rates with each plan annually. Benefit changes are effective January 1, 2002, and
changes are summarized on page 4. Rates are shown at the end of this brochure.

Plain Language
Teams of Government and health plans staff worked on all FEHB brochures to make them responsive, accessible, and
understandable to the public. For instance,

Except for necessary technical terms, we use common words. For instance, you means the enrollee or
family member; we means Preferred Care. .

We limit acronyms to ones you know. FEHB is the Federal Employees Health Benefits Program. OPM is the
Office of Personnel Management. If we use others, we tell you what they mean first.

Our brochure and other FEHB plans brochure have the same format and similar descriptions to help you
compare plans.

If you have comments or suggestions about how to improve the structure of this brochure, let OPM know. Visit OPM s
Rate Us feedback area at www. . opm. gov/ insure or e-mail OPM at fehbwebcomments@ opm. gov. You may also write
to OPM at the Office of Personnel Management, Office of Insurance Planning and Evaluation Division, 1900 E Street,

NW Washington, D. C. 20415-3650.

Section 1 Introduction/ Plain Language

OPM negotiates benefits and rates with each plan annually. Benefit changes are effective January 1, 2002, and
changes are summarized on page 8. Rates are shown at the end of this brochure. 5
5 Page 6 7
Section 6 2002 Preferred Care
Penalties for Fraud
Inspector General Advisory
Fraud increases the cost of health care for everyone. If you suspect that a
physician, pharmacy, or hospital has charged you for services you did not
receive, billed you twice for the same service, or misrepresented any
information, do the following:

Call the provider and ask for an explanation. There may be an error.
If the provider does not resolve the matter, call us at ( 716) 325-3113
and explain the situation.
If we do not resolve the issue, call or write

THE HEALTH CARE FRAUD HOTLINE
202/ 418-3300
The United States Office of Personnel Management
Office of the Inspector General Fraud Hotline
1900 E Street, NW, Room 6400
Washington, DC 20415

Anyone who falsifies a claim to obtain FEHB Program benefits can be
prosecuted for fraud. Also, the Inspector General may investigate anyone
who uses an ID card if the person tries to obtain services for someone
who is not an eligible family member, or is no longer enrolled in the Plan
and tries to obtain benefits. Your agency may also take administrative
action against you.

Stop Health Care Fraud!

Inspector General Advisory 6
6 Page 7 8

2002 Preferred Care 7 Section
Section 1. Facts about this HMO plan
This Plan is a health maintenance organization ( HMO) . We require you to see specific physicians, hospitals, and other
providers that contract with us. These Plan providers coordinate your health care services.

HMOs emphasize preventive care such as routine office visits, physical exams, well-baby care, and immunizations, in
addition to treatment for illness and injury. Our providers follow generally accepted medical practice when prescribing
any course of treatment.

When you receive services from Plan providers, you will not have to submit claim forms or pay bills. You only pay the
copayments or coinsurance described in this brochure. When you receive emergency services from non-Plan provid-
ers, you may have to submit claim forms.

You should join an HMO because you prefer the plan's benefits, not because a particular provider is available.
You cannot change plans because a provider leaves our Plan. We cannot guarantee that any one physician,
hospital, or other provider will be available and/ or remain under contract with us.

How we pay providers
We contract with individual physicians, medical groups, and hospitals to provide the benefits in this brochure. These Plan
providers accept a negotiated payment from us, and you will only be responsible for your copayments or coinsurance.

Your Rights
OPM requires that all FEHB Plans provide certain information to their FEHB members. You may get information
about us, our networks, providers, and facilities. OPM s FEHB website ( www. opm. gov/ insure) lists the specific types
of information that we must make available to you. Some of the required information is listed below.

More than 2,600 doctors and area health centers participate with Preferred Care to provide primary care as well as
specialty services to the membership. In addition to doctors, the Plan has arranged for hospital, skilled nursing facility,
home health, and other covered health services.

All members must choose a primary care doctor who will provide, arrange, and coordinate all medically necessary
services. All female members are strongly encouraged to select an obstetrician/ gynecologist in addition to a primary
care doctor. The OB/ GYN will treat you for any gynecological or obstetrical condition. Members do not need a
referral from their primary care doctor to see their OB/ GYN. A women s OB/ GYN is considered an additional
primary care doctor. New York State law does provide coverage with Nurse Midwives and the Plan maintains Nurse
Midwives on the provider panel. Plan members may elect a Nurse Midwife instead of an OB/ GYN.

If you want more information about us, call us at ( 716) 325-3113, toll free at ( 800) 950-3224 or write to 259 Monroe
Avenue, Rochester, New York, 14607. You may also contact us by fax at ( 716) 327-2298, or our e-mail address at
customercare@ preferredcare. org, or visit our website at www. preferredcare. org.

Service Area
To enroll in this plan, you must live or work in our Service Area. This is where our providers practice. Our service area
is: Monroe, Genesee, Livingston, Ontario, Orleans, Seneca, Wayne, Wyoming, and Yates Counties in New York State.

Ordinarily, you must get care from providers who contract with us. If you receive care outside our service area, we
will pay only for urgent or emergency care. Students attending school or college outside of the service area are
covered for follow up care if required after emergency or urgent care treatment. With prior authorization from the
student s primary care physician and Plan, follow up care for students is covered.

If you or a covered family member move outside of our service area, you can enroll in another plan. If your depen-
dents live out of the area ( for example, if your child goes to college in another state) , you should consider enrolling in a
fee for service plan or an HMO that has agreements with affiliates in other areas. If you or a family member move,
you do not have to wait until Open Season to change plans. Contact your employing or retirement office.

Section 1 7
7 Page 8 9
Section 8 2002 Preferred Care
Section 2. How we change for 2002
Do not rely on these change descriptions; this is not an official statement of benefits. For that, go to Section 5 Benefits.
Also, we edited and clarified language throughout the brochure; any language change not shown here is a clarification
that does not change benefits.

Program-wide changes
We no longer limit total blood cholesterol tests to certain age groups. ( Section 5( a) )

Changes to this Plan
Your share of the non-Postal premium will increase by 16.8% for Self Only or 45.6% for Self and Family.
We increased speech therapy benefits by removing the requirement that services must be required to restore
functional speech. ( Section 5 ( a) )
We now cover certain intestinal transplants. ( Section 5( b) )
There is a $ 15,000 per person annual maximum for external prosthetic and orthopedic devices.

Section 2 8
8 Page 9 10

2002 Preferred Care 9 Section
Section 3. How you get care
Identification cards We will send you an identification ( ID) card when you enroll. You should carry your ID card with you at all times. You must show it whenever you
receive services from a Plan provider, or obtain a prescription at a Plan
pharmacy. Until you receive your ID card, use your copy of the Health
Benefits Election Form, SF-2809, your health benefits enrollment confirma-
tion ( for annuitants) , or your Employee Express confirmation letter.

If you do not receive your ID card within 30 days after the effective date of
your enrollment, or if you need replacement cards, call us at ( 716) 325-3113
or ( 800) 950-3224, or if you have a speech or hearing impairment and have
access to TTY equipment ( 716) 325-2629.

Where you get covered care You get care from Plan providers and Plan facilities. You will only pay copays and/ or coinsurance, and you will not have to file claims.

Plan providers Plan providers are physicians, including primary care physicians and special-
ists and other health care professionals in our service area that we contract
with to provide covered services to our members. Providers are credentialed
to ensure that they meet strict standards of quality.

We list Plan providers in the provider directory, which we update periodically.
This list is also on our website at www. preferredcare. org.

Plan facilities Plan facilities are hospitals and other facilities in our service area that we
contract with to provide covered services to our members. We list these in the
provider directory, which we update periodically. The list is also on our
website.

It depends on the type of care you need. First, you and each family member
must choose a primary care physician. This decision is important since your
primary care physician provides or arranges for most of your health care.

To select a primary care physician, either choose one from our provider
directory or contact a Preferred Care Customer Care Center representative
who will assist you.

Primary care Your primary care physician can be a family or general practitioner, an
internist or a pediatrician. Your primary care physician will provide most of
your health care, or give you a referral to see a specialist. Women may choose
an OB/ GYN in addition to their primary care physician.

If you want to change primary care physicians or if your primary care
physician leaves the Plan, call us. We will help you select a new one.

Specialty care Your primary care physician will refer you to a specialist for needed care ( you
may see an OB/ GYN without a referral) . When you receive a referral from
your primary care physician, you must return to the primary care physician
after the consultation, unless your primary care physician authorized a certain
number of visits without additional referrals. The primary care physician must
provide or authorize all follow-up care. Do not go to the specialist for return
visits unless your primary care physician gives you a referral.

Section 3

What you must do
What you must do to get covered care 9
9 Page 10 11
Section 10 2002 Preferred Care
Here are other things you should know about specialty care:
If you need to see a specialist frequently because of a chronic, complex,
or serious medical condition, your primary care physician will develop a
treatment plan that allows you to see your specialist for a certain number
of visits or a certain period of time without additional referrals. Your
primary care physician will use our criteria when creating your treatment
plan and will obtain approval, when required, beforehand.

If you are seeing a specialist when you enroll in our Plan, talk to your
primary care physician. Your primary care physician will decide what
treatment you need. If he or she decides to refer you to a specialist, ask if
you can see your current specialist. If your current specialist does not
participate with us, you must receive treatment from a specialist who
does. Generally, we will not pay for you to see a specialist who does not
participate with our Plan.

If you are seeing a specialist and your specialist leaves the Plan, call your
primary care physician, who will arrange for you to see another specialist.
You may receive services from your current specialist until we can make
arrangements for you to see someone else.

If you have a chronic or disabling condition and lose access to your
specialist because we:

-terminate our contract with your specialist for other than cause; or
-drop out of the Federal Employees Health Benefits ( FEHB) Program
and you enroll in another FEHB Plan; or

-reduce our service area and you enroll in another FEHB Plan,
you may be able to continue seeing your specialist for up to 90 days after
you receive notice of the change. Contact us, or if we drop out of the
Program, contact your new plan.

If you are in the second or third trimester of pregnancy and you lose access to
your primary care physician or obstetrician/ gynecologist based on the above
circumstances, you can continue to see your primary care physician or
obstetrician/ gynecologist until the end of your postpartum care, even if it is
beyond the 90 days.

Hospital care Your Plan primary care physician or specialist will make necessary hospital
arrangements and supervise your care. This includes admission to a skilled
nursing or other type of facility.

If you are in the hospital when your enrollment in our Plan begins, call our
Customer Care Center immediately at ( 716) 325-3113. If you are new to the
FEHB Program, we will arrange for you to receive care.

If you changed from another FEHB plan to us, your former plan will pay for
the hospital stay until:

You are discharged, not merely moved to an alternative care center; or
The day your benefits from your former plan run out; or
The 92nd day after you become a member of this Plan, whichever
happens first.

These provisions apply only to the hospital benefit of the hospitalized person;
we cover your other non-hospital care.

Section 3 10
10 Page 11 12
2002 Preferred Care 11 Section Section 4
Circumstances beyond Under certain extraordinary circumstances, such as natural disasters, we may our control have to delay your services or we may be unable to provide them. In that case,
we will make all reasonable efforts to provide you with the necessary care.
Services requiring our Your primary care physician has authority to refer you for most services. prior approval For certain services, however, your physician must obtain approval from us.

Before giving approval, we consider if the service is covered, medically
necessary, and follows generally accepted medical practice.

We call this review and approval process precertification . Your primary care
physician is familiar with the procedures that require a prior approval and will

make all necessary arrangements on your behalf.

Section 4. Your costs for covered services
You must share the cost of some services. You are responsible for:
Copayments A copayment is a fixed amount of money you pay to the provider, facility,
pharmacy, etc.

Example: When you see your primary care physician, you pay a copayment of
$ 10 per office visit.

Deductible We do not have a deductible.
Coinsurance Coinsurance is the percentage of our negotiated fee that you must pay for your
care.

Example: In our Plan, you pay 20% of our allowance for durable medical
equipment.

Your catastrophic protection After your copayments and coinsurance total $ 3,300 per person or $ 8,400 out-of-pocket maximum per family enrollment in any calendar year, you do not have to pay any more
for coinsurance and for covered services. However, copayments for the following services do not copayments count toward your out-of-pocket maximum, and you must continue to pay
copayments for this service:
Prescription Drugs .
Be sure to keep accurate records of your copayments since you are responsible
for informing us when you reach these maximums.

We call this review and approval process precertification . Your primary
care physician is familiar with the procedures that require a prior approval and
will make all necessary arrangements on your behalf. 11
11 Page 12 13

Section 12 2002 Preferred Care Section 5
Section 5. Benefits OVERVIEW
(See page 8 for how our benefits changed this year and page 51 for a benefits summary.)

NOTE: This benefits section is divided into subsections. Please read the important things you should keep in mind at
the beginning of each subsection. Also read the General Exclusions in Section 6; they apply to the benefits in the
following subsections. To obtain claims forms, claims filing advice, or more information about our benefits, contact
us at (716) 325-3113 or (800) 950-3224 or if you have a speech or hearing impairment and have TTY equipment
(716) 325-2629 or visit our website at www. preferredcare. org.

(a) Medical services and supplies provided by physicians and other health care professionals ............................. 13 -20
Diagnostic and treatment services
Lab, X-ray, and other diagnostic tests
Preventive care, adult
Preventive care, children
Maternity care
Family planning
Infertility services
Allergy care
Treatment therapies
Physical and occupational therapies

(b) Surgical and anesthesia services provided by physicians and other health care professionals .......................... 21 -23
Surgical procedures
Reconstructive surgery
Oral and maxillofacial surgery

(c) Services provided by a hospital or other facility, and ambulance services ........................................................ 24 -25
Inpatient hospital
Outpatient hospital or ambulatory
surgical center

(d) Emergency services/ accidents ............................................................................................................................ 26 -27
Medical emergency

(e) Mental health and substance abuse benefits ...................................................................................................... 28 -29
(f) Prescription drug benefits .................................................................................................................................. 30 -31
(g) Special features ......................................................................................................................................................... 32
Flexible Benefits Option.
Services for Deaf and Hearing Impaired
Travel Benefits/ Services Overseas

(h) Dental benefits .......................................................................................................................................................... 33
(i) Non-FEHB benefits available to Plan members ........................................................................................................ 34

Summary of benefits ....................................................................................................................................................... 51

Speech therapy
Hearing services (testing, treatment, and supplies)
Vision services (testing, treatment, and supplies)
Foot care
Orthopedic and prosthetic devices
Durable medical equipment (DME)
Home health services
Chiropractic
Alternative treatments
Educational classes and programs

Organ/ tissue transplants
Anesthesia

Extended care benefits/ skilled nursing care
facility benefits
Hospice care
Ambulance

Ambulance 12
12 Page 13 14
2002 Preferred Care 13 Section
I
M
P
O
R
T
A
N
T

You Pay Benefit Description

I
M
P
O
R
T
A
N
T

$ 10 per visit ( no primary care
physician copay for children
under the age of 2)

Section 5( a). Medical services and supplies provided by physicians and
other health care professionals

Here are some important things to keep in mind about these benefits:
Please remember that all benefits are subject to the definitions, limitations, and
exclusions in this brochure and are payable only when we determine they are medically
necessary.

Plan physicians must provide or arrange your care.
We have no deductible.
Be sure to read Section 4, Your costs for covered services for valuable information about
how cost sharing works. Also read Section 9 about coordinating benefits with other
coverage, including with Medicare.

Diagnostic and treatment services You Pay
Professional services of physicians
In physician s office

In an urgent care center Nothing
During a hospital stay
In a skilled nursing facility

Office medical consultations $ $ 10 per visit
Second surgical opinions

At home $ $ 10 per visit

Lab, X-ray and other diagnostic tests You Pay
X--rays $ 10 per visit
CAT Scans/ / MRI
Ultrasound
Electrocardiogram and EEG

Section 5( a) 13
13 Page 14 15
Section 14 2002 Preferred Care
Tests, such as: Nothing
Blood tests
Urinalysis
Non--routine pap tests
Pathology
Non--routine Mammograms

Preventive care, adult You Pay
Routine screenings, such as: Nothing
Complete Blood Count
Total Blood Cholesterol
Colorectal Cancer Screening, , including
-Fecal occult blood test
-Sigmoidoscopy, screening every five years starting at age 50 Nothing
Prostate Specific Antigen ( ( PSA test) Nothing
Two gynecological visits per year Nothing
Routine pap test ( ( annually) Nothing
Routine mammogram covered for women age 35 and older, , as follows: Nothing
From age 35 through 39, , one during this five year period
At age 40 and older, , one every year

Not covered: Physical exams required for obtaining or continuing All charges
employment or insurance, attending schools or camp, or travel.

Routine Immunizations, limited to: $ 10 per visit
Tetanus--diphtheria ( Td) booster once every 10 years, , ages 19 and
over ( except as provided for under Childhood immunizations)

Influenza/ / Pneumococcal vaccines, annually, age 65 and over or as
recommended

Lab, X-ray and other diagnostic tests (Continued) You Pay

Section 5( a) 14
14 Page 15 16
2002 Preferred Care 15 Section Section 5( a)
Preventive care, children You Pay
Childhood immunizations recommended by the American Academy Nothing
of Pediatrics

Well-child care charges for routine examinations, immunizations and Nothing
care ( through age 18)

Examinations, such as:
Eye exams to determine the need for vision correction. . $ 10 per visit
Ear exams as part of a well-child care visit through age 18 to Nothing
determine the need for hearing correction.

Examinations done on the day of immunizations ( ( through age 18) Nothing

Maternity care You Pay
Complete maternity ( obstetrical) care, such as: Nothing
Prenatal care
Delivery
Postnatal care
Note: Here are some things to keep in mind:
You may remain in the hospital up to 48 hours after a regular delivery
and 96 hours after a cesarean delivery. We will extend your inpatient
stay if medically necessary.

We cover routine nursery care of the newborn child during the covered
portion of the mother s maternity stay. We will cover other care of an
infant who requires non-routine treatment only if we cover the infant
under a Self and Family enrollment.

We pay hospitalization and surgeon services ( delivery) the same as for
illness and injury. See Hospital benefits ( Section 5c) and Surgery
benefits ( Section 5b) .

Not covered: Routine sonograms to determine fetal age, size or sex All charges

Family planning You Pay
A broad range of voluntary planning services, limited to: $ 10 per visit
Voluntary sterilization
Surgically implanted contraceptives ( such as Norplant)
Injectable contraceptive drugs ( such as Depo Provera)
Intrauterine devices ( IUDs)
Diaphragms

Note: We cover oral contraceptives under the perscription drug benefit.

Not covered: reversal of voluntary surgical sterilization, genetic counseling All charges 15
15 Page 16 17
Section 16 2002 Preferred Care
Infertility services You Pay
Diagnosis and treatment of infertility, such as:
Artificial insemination: :
intravaginal insemination ( IVI)
intracervical insemination ( ICI)
intrauterine insemination ( IUI)

Fertility drugs
Note: Self-administered and oral fertility drugs are covered under the
prescription drug benefit.

Not covered: All charges
Assisted reproductive technology (ART) procedures, such as:
in vitro fertilization
embryo transfer, gamete GIFT and zygote ZIFT
zygote transfer
Services and supplies related to excluded ART procedures
Cost of donor sperm
Cost of donor egg

Allergy care You Pay
Testing and treatment $ 10 per visit
Allergy injection

Allergy serum Nothing
Not covered: provocative food testing and sublingual allergy desensitization All charges

$ 10 per visit

Section 5( a) 16
16 Page 17 18
2002 Preferred Care 17 Section
Treatment therapies You pay
Chemotherapy and radiation therapy. . $ 10 per visit
Note: High dose chemotherapy in association with autologous bone
marrow transplants is limited to those transplants listed under
Organ/ Tissue Transplants on page 23.

Respiratory and inhalation therapy
Dialysis--Hemodialysis and peritoneal dialysis
Growth hormone therapy ( ( GHT)
Note: Growth hormone is covered under the prescription drug benefit.
Note: We will only cover GHT when your physician pre-approves the
treatment. Your physician will submit information that establishes that
the GHT is medically necessary. Your physician must authorize GHT
before you begin treatment. If your physician does not pre-approve or if
we determine GHT is not medically necessary, we will not cover the GHT
or related services and supplies.

Intravenous ( ( IV) / Infusion Therapy Home IV and antibiotic therapy Nothing

Physical and occupational therapies You pay
60 visits per condition for the services of each of the following: :
-qualified physical therapists and
-occupational therapists.
Note: We only cover therapy to restore bodily function when there has
been a total or partial loss of bodily function due to illness or injury.

Cardiac rehabilitation following a heart transplant, bypass surgery or $ 10 per visit
a myocardial infraction, is provided for up to 36 visits.

Speech therapy You pay
60 visits per condition

$ 10 per office visit
Nothing for outpatient visit
Nothing per visit during
covered inpatient admission

Section 5( a) 17
17 Page 18 19
Section 18 2002 Preferred Care
Hearing services (testing, treatment, and supplies) You Pay
Hearing aids for children through age 18, up to $ 600 once every Nothing
three years

Hearing screenings as part of a well-child care visit through age 18. Nothing
Not covered: All charges
all other hearing testing
hearing aids for adults over age 18.

Vision services (testing, treatment, and supplies) You pay
One pair of eyeglasses or contact lenses to correct impairment directly 20% of plan allowance.
caused by accidental ocular injury or intraocular surgery ( such as for
cataracts) .

One pair of prescription eyeglasses ( frames and lenses) or prescription
daily-wear contact lenses, per member once every year at plan
providers. Children under age 12 may obtain eyewear as required by
prescription change of at least . 5 diopter.

Annual eye refraction, including lens prescriptions. $ 10 per visit

Not covered: All charges
Radial keratotomy and other refractive surgery.
Eye exercises and orthoptics.

Foot care You Pay
Routine foot care when you are under active treatment for a metabolic $ 10 per visit
or peripheral vascular disease, such as diabetes.

See orthopedic and prosthetic devices for information on podiatric
shoe inserts.

Not covered: All charges
Cutting, trimming or removal of corns, calluses, or the free edge of
toenails, and similar routine treatment of conditions of the foot, except
as stated above

Treatment of weak, strained or flat feet or bunions or spurs; and of
any instability, imbalance or subluxation of the foot (unless the
treatment is by open cutting surgery)

Section 5( a)

The remaining cost after a
discount of 20% -60% and
a credit of $ 60. 18
18 Page 19 20
2002 Preferred Care 19 Section
Orthopedic and prosthetic devices You Pay
Custom made shoe inserts up to $ 250 ( One pair every three years) Nothing
Internal prosthetic devices, such as artificial joints, pacemakers, Nothing
cochlear implants, and surgically implanted breast implant following
mastectomy. Note: See 5( b) for coverage of the surgery to insert
the device

Orthotic devices 20% of plan allowance
Artificial limbs and eyes; stump hose
Corrective orthopedic appliances for non-dental treatment of
temporomandibular joint ( TMJ) pain dysfunction syndrome.

Orthopedic devices, such as braces.
Note: External prosthetic and orthopedic devices are covered up to a
maximum person payment of $ 15,000 per calendar year.

Externally worn breast prostheses and surgical bras, including 20% of plan allowance
necessary replacements following a mastectomy with no maximums

Not covered: All charges
arch supports
heel pads and heel cups
lumbosacral supports
corsets, trusses, elastic stockings, support hose, and other supportive
devices

Durable medical equipment (DME) You pay
Rental or purchase, at our option, including repair and adjustment, of 20% of plan allowance.
durable medical equipment prescribed by your Plan physician, such as
oxygen and dialysis equipment. Under this benefit, we also cover:

hospital beds; ;
wheelchairs; ;
walkers; ;
insulin pumps. .

Not covered: All charges
Motorized wheel chairs, unless medically necessary
Air conditioners, dehumidifiers, humidifiers
Breast pumps
Electric hospital bed (unless medically necessary)
Hypo-allergenic bedding
Visual aids (e. g., CCTV, magnifying glasses)
Environmental control units, such as control units to turn on a
television or air conditioner, etc.

Section 5( a) 19
19 Page 20 21
Section 20 2002 Preferred Care Section 5( a)
Home health services You Pay
Home health care ordered by a Plan physician and provided by a Nothing
registered nurse ( R. N. ) , licensed practical nurse ( L. P. N. ) , licensed
vocational nurse ( L. V. N. ) , or home health aide.

Services include oxygen therapy, , intravenous therapy, and medications.

Not covered: All charges
Nursing care requested by, or for the convenience of, the patient or the
patient's family;

Home care primarily for personal assistance that does not include a
medical component and is not diagnostic, therapeutic, or rehabilitative.

Chiropractic You Pay
The detection and correction by manual or mechanical means of $ 10 per visit.
structural imbalance, distortion or subluxation in the human body for the
purposes of removing nerve interference, and the effects thereof, where
such interference is the result of or related to distortion, misalignment
or subluxation or in the vertebral column.

Not covered: All charges
Maintenance treatment for conditions that does not result in significant
clinical improvement or lead toward resolution of the condition.

Alternative treatments You Pay
Acupuncture -by a doctor of medicine or osteopathy for: anesthesia, pain 50% of plan allowance.
relief up to 10 visits per calendar year

Not covered: All charges
naturopathic services
hypnosis

Educational classes and programs You Pay
Smoking Cessation
Professional services for outpatient nicotine dependency, including $ 10 per visit
diagnostic evaluations to determine the nature and extent of illness,
counseling and therapy.

Note: Prescriptions that are smoking deterrents and FDA approved such
as Zyban, Nicotrol, and Habitrol are covered under the prescription
drug benefit.

Diabetes self management $ 10 per visit 20
20 Page 21 22
2002 Preferred Care 21 Section Section 5( b)
You Pay Benefit Description
Section 5( b). Surgical and anesthesia services provided by physicians
and other health care professionals

The amounts listed below are for the charges billed by a physician or other health care
professional for your surgical care. Look in Section 5( c) for charges associated with the
facility ( i. e. hospital, surgical center, etc. ) .

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Surgical procedures You Pay
A comprehensive range of services, such as:
Operative procedures
Treatment of fractures, , including casting
Normal pre--and post-operative care by the surgeon
Correction of amblyopia and strabismus
Endoscopy procedures
Biopsy procedures
Removal of tumors and cysts
Correction of congenital anomalies ( ( see reconstructive surgery)
Surgical treatment of morbid obesity a condition in which an
individual weighs 100 pounds or 100% over his or her normal weight
according to current underwriting standards; eligible members must
be age 18 or over.

Insertion of internal prosthetic devices. . See 5( a) Orthopedic braces
and prosthetic devices for device coverage information.

Voluntary sterilization
Treatment of burns

Not covered: All charges
Reversal of voluntary sterilization
Routine treatment of conditions of the foot; see Foot care.

$ 10 per office visit; nothing
for inpatient or outpatient
hospital procedures.

$ 10 per office visit
Nothing for inpatient/
outpatient surgery. 21
21 Page 22 23
Section 22 2002 Preferred Care
Reconstructive surgery You Pay
Surgery to correct a functional defect
Surgery to correct a condition caused by injury or illness if:
the condition produced a major effect on the member s appearance and
the condition can reasonably be expected to be corrected by
such surgery

Surgery to correct a condition that existed at or from birth and is a
significant deviation from the common form or norm. Examples of
congenital anomalies are: protruding ear deformities; cleft lip; cleft
palate; birth marks; webbed fingers; and webbed toes.

All stages of breast reconstruction surgery following a mastectomy, Nothing
such as:

surgery to produce a symmetrical appearance on the other breast; ;
treatment of any physical complications, , such as lymphoedema;
breast prostheses and surgical bras and replacements ( ( see Prosthetic 20% of plan allowance
devices)

Note: If you need to have a mastectomy, you may choose to have this
procedure performed on an inpatient basis and remain in the hospital up
to 48 hours after the procedure.

Not covered: All charges
Cosmetic surgery -any surgical procedure (or any portion of a
procedure) performed primarily to improve physical appearance
through change in bodily form, except repair of accidental injury

Surgeries related to sex transformation

Oral and maxillofacial surgery You Pay
Oral surgical procedures, limited to:
Reduction of fractures of the jaws or facial bones; ;
Surgical correction of cleft lip, , cleft palate or severe functional
malocclusion;

Removal of stones from salivary ducts; ;
Excision of leukoplakia or malignancies; ;
Excision of cysts and incision of abscesses when done as independent
procedures; and

Other surgical procedures that do not involve the teeth or their
supporting structures.

Not covered: All charges
Oral implants and transplants
Procedures that involve the teeth or their supporting structures (such
as the periodontal membrane, gingiva, and alveolar bone)

Section 5( b)

$ 10 per office visit.
Nothing for inpatient/ outpatient
surgery.

$ 10 per outpatient surgery
Nothing for inpatient surgery 22
22 Page 23 24
2002 Preferred Care 23 Section Section 5 (b)
Organ/ tissue transplants You Pay
Limited to: Nothing
Cornea
Heart
Heart/ / lung
Kidney
Kidney/ / Pancreas
Liver
Lung: : Single Double
Pancreas
Allogeneic bone marrow transplants
Autologous bone marrow transplants ( autologous stem cell and peripheral
stem cell support) for the following conditions: acute lymphocytic or
non-lymphocytic leukemia; advanced Hodgkin s lymphoma; advanced
non-Hodgkin s lymphoma; advanced neuroblastoma; breast cancer;
multiple myeloma; epithelial ovarian cancer; testicular, mediastinal,
and ovarian cancers.

Intestinal transplants ( small intestine) and the small intestine with the
liver or small intestine with multiple organs such as the liver, stomach,
and pancreas

Limited Benefits Treatment for breast cancer, multiple myeloma, and
epithelial ovarian cancer may be provided in an NCI-or NIH-approved
clinical trial at a Plan-designated center of excellence and if approved by
the Plan s medical director in accordance with the Plan s protocols.

Note: We cover related medical and hospital expenses of the donor when
we cover the recipient.

Not covered: All charges
Donor screening tests and donor search expenses, except those
performed for the actual donor

Implants of artificial organs
Transplants not listed as covered

Anesthesia You Pay
Professional services provided in Nothing
Hospital ( inpatient)
Hospital outpatient department
Skilled nursing facility
Ambulatory surgical center
Office

Section 5 (b) Section 5( b) Section 5( b) 23
23 Page 24 25
Section 24 2002 Preferred Care
You Pay Benefit Description
Section 5( c). Services provided by a hospital or other facility,
and ambulance services

Plan physicians must provide or arrange your care and you must be hospitalized in a
Plan facility.

We have no deductible.
Be sure to read Section 4, Your costs for covered services for valuable information about
how cost sharing works. Also read Section 9 about coordinating benefits with other
coverage, including with Medicare.

The amounts listed below are for the charges billed by the facility ( i. e. , hospital or
surgical center) or ambulance service for your surgery or care. Any costs associated with
the professional charge ( i. e. , physicians, etc. ) are covered in Section 5( a) or ( b) .

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Inpatient hospital You Pay
Room and board, such as Nothing
ward, semiprivate, or intensive care accommodations;
general nursing care; and
meals and special diets.

NOTE: If you want a private room when it is not medically necessary,
you pay the additional charge above the semiprivate room rate.

Other hospital services and supplies, such as: Nothing
Operating, recovery, maternity, and other treatment rooms
Prescribed drugs and medicines
Diagnostic laboratory tests and X-rays
Administration of blood and blood products
Blood or blood plasma, if not donated or replaced
Dressings, splints, casts, and sterile tray services
Medical supplies and equipment, including oxygen
Anesthetics, including nurse anesthetist services
Medical supplies, appliances, medical equipment, and any covered
items billed by a hospital for use at home.

Not covered: All charges.
Custodial care
Non-covered facilities, such as nursing homes and schools
Personal comfort items, such as telephone, television, barber services,
guest meals and beds

Private nursing care

Section 5( c) 24
24 Page 25 26
2002 Preferred Care 25 Section
Outpatient hospital or ambulatory surgical center You Pay
Operating, recovery, and other treatment rooms Nothing
Prescribed drugs and medicines
Diagnostic laboratory tests, X-rays, and pathology services
Administration of blood, blood plasma, and other biologicals
Blood and blood plasma, if not donated or replaced
Pre-surgical testing
Dressings, casts, and sterile tray services
Medical supplies, including oxygen
Anesthetics and anesthesia service

NOTE: We cover hospital services and supplies related to dental
procedures when necessitated by a non-dental physical impairment.
We do not cover the dental procedures.

Extended care benefits/ skilled nursing care facility benefits You pay
Skilled nursing facility ( SNF) : 120 days per calendar year. Nothing
Covered services include:
Bed, board, and general nursing care.
Drugs, biologicals, supplies, and equipment.

Not covered: custodial care All charges

Hospice care You Pay
Care for terminally ill patients ( life expectancy of 6 months or less) . Nothing
Covered services include dietary counseling, home health aid,
occupational therapy, speech therapy, and skilled nursing.

Drugs and medical supplies.

Not covered: Independent nursing, homemaker services All charges

Ambulance You Pay
Local professional ambulance service when medically appropriate Nothing

Section 5( c) 25
25 Page 26 27
Section 26 2002 Preferred Care
What is a medical emergency?
A medical emergency is the sudden and unexpected onset of a condition or an injury that you believe endan-
gers your life or could result in serious injury or disability, and requires immediate medical or surgical care.
Some problems are emergencies because, if not treated promptly, they might become more serious; examples
include deep cuts and broken bones. Others are emergencies because they are potentially life-threatening,
such as heart attacks, strokes, poisonings, gunshot wounds, or sudden inability to breathe. There are many
other acute conditions that we may determine are medical emergencies -what they all have in common is the
need for quick action.

What to do in case of emergency:
Emergencies within/ outside our service area: Emergencies, as defined above, do not require prior authori-
zation. Even so, we encourage you to always contact your primary care physician for direction and advice
before seeking medical treatment. In the event, however, that you are faced with a situation you are sure is an
emergency as defined above, you should go directly to the emergency room.

In the event that you are faced with a situation that you are not sure is an emergency as defined above, you
should contact your primary care physician first. Your primary care physician will help you determine the
most appropriate course of treatment. As your partner in health care, your primary care physician needs to be
kept informed of any health care services that you receive. We require that you contact your primary care
physician to facilitate his or her ability to oversee your health care and ensure that you may receive any
necessary follow-up treatment in connection with your emergency room visit.

Urgent Care within/ outside our service area: Urgent care is intended to treat minor illness or injury-a
sprain, a minor cut or burn, the flu, or other ailment that is not quite an emergency but does require prompt
care. It differs from emergency care, which is designed to treat sudden, serious health problems ( for example,
a heart attack or stroke) . When used correctly, urgent care is an appropriate, convenient, and affordable
alternative to emergency care.

You are required to obtain a referral from your primary care physician before going to an urgent care center.
Without a referral, you may be responsible for all costs incurred.

Section 5( d). Emergency services/ accidents
Here are some important things to keep in mind about these benefits:
Please remember that all benefits are subject to the definitions, limitations, and
exclusions in this brochure.

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Section 5( d) 26
26 Page 27 28
2002 Preferred Care 27 Section
You Pay Benefit Description
Emergency within our service area You Pay
Emergency care at a doctor s office $ 10
Emergency care at an urgent care center $ 25
Emergency care as an outpatient at a hospital, $ 50 ( waived if admitted)
including doctors services

Not covered: Elective care or non-emergency care All charges

Emergency outside our service area You Pay
Emergency care at a doctor s office $ 10
Emergency care at an urgent care center $ 25
Emergency care as an outpatient at a hospital, including $ 50 ( waived if admitted)
doctors services

Not covered: All charges
Elective care or non-emergency care
Emergency care provided outside the service area if the need for
care could have been foreseen before leaving the service area

Medical and hospital costs resulting from a normal full-term delivery
of a baby outside the service area.

Ambulance You Pay
Professional ambulance service when medically appropriate. Nothing
See 5 ( c) for non-emergency service.

Not covered: Air ambulance, unless determined to be medically All charges
necessary and approved by our medical director.

Section 5( d) 27
27 Page 28 29
Section 28 2002 Preferred Care
You Pay Benefit Description
Section 5( e). Mental Health and Substance Abuse Benefits
When you get our approval for services and follow a treatment plan we approve, cost
sharing and limitations for Plan mental health and substance abuse benefits will be no
greater than for similar benefits for other illnesses and conditions.

Here are some important things to keep in mind about these benefits:
All benefits are subject to the definitions, , limitations, and exclusions in this brochure.
We have no deductible. .
Be sure to read Section 4, , Your costs for covered services for valuable information about
how cost sharing works. Also read Section 9 about coordinating benefits with other
coverage, including with Medicare.

YOU MUST GET PREAUTHORIZATION OF THESE SERVICES. See the
instructions after the benefits description below.

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Mental health and substance abuse benefits You Pay
All diagnostic and treatment services recommended by a Plan provider and
contained in a treatment plan that we approve. The treatment plan may
include services, drugs, and supplies described elsewhere in this brochure.

Note: Plan benefits are payable only when we determine the care is
clinically appropriate to treat your condition and only when you receive
the care as part of a treatment plan that we approve.

Professional services, including individual or group therapy by $ 10 per visit
providers such as psychiatrists, psychologists, or clinical social workers

Medication management

Diagnostic tests Nothing
Services provided by a hospital or other facility Nothing
Services in approved alternative care settings such as partial
hospitalization, full-day hospitalization, and facility based intensive
outpatient treatment

Not covered: Services we have not approved. All charges
Note: OPM will base its review of disputes about treatment plans on the
treatment plan's clinical appropriateness. OPM will generally not order
us to pay or provide one clinically appropriate treatment plan in favor
of another.

Your cost sharing
responsibilities are no
greater than for other
illness or conditions.

Section 5( e) 28
28 Page 29 30

2002 Preferred Care 29 Section
Preauthorization To be eligible to receive these benefits you must obtain a treatment plan and follow all of the following authorization processes:
For mental health treatment, you or your primary care physician are required
to contact Preferred Care s Behavioral Health Services Unit and speak with a
mental health specialist who will ask basic information about your mental
health history to determine the need for a referral for outpatient care. For
inpatient care, your primary care physician makes a referral to Preferred
Care s Preauthorization Department for inpatient hospitalization or partial
hospitalization ( day treatment) .

For chemical dependency treatment, you are required to contact the Preferred
Care Behavioral Health Services Unit and speak with an intake coordinator
who will ask basic information about your chemical dependency history to
determine the need for an assessment. If an assessment is appropriate, an
appointment for you will be arranged with an independent Preferred Care
Chemical Dependency Assessor. Once the assessment is completed, a clinical
quality coordinator will contact you to make specific recommendations for
treatment, and will arrange inpatient or outpatient services as needed.

The Behavioral Health Services Unit telephone number is ( 716) 327-2477 or
( 800) 836-1430 ext. 477. For the names of plan providers or a provider
directory, contact a Preferred Care Customer Care Center representative at
( 716) 325-3113 or ( 800) 950-3224 or visit our website at
www. preferredcare. org.

Limitation We may limit your benefits if you do not follow your treatment plan.

Section 5( e) 29
29 Page 30 31

Section 30 2002 Preferred Care
Section 5( f). Prescription drug benefits
Here are some important things to keep in mind about these benefits:
We cover prescribed drugs and medications, , as described in the chart beginning on the
next page.

All benefits are subject to the definitions, , limitations and exclusions in this brochure
and are payable only when we determine they are medically necessary.

We have no deductible. .
Be sure to read Section 4, , Your costs for covered services for valuable information about
how cost sharing works. Also read Section 9 about coordinating benefits with other
coverage, including with Medicare.

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There are important features you should be aware of. These include:
Who can write your prescription. A licensed physician must write the prescription.
Where you can obtain them. You may fill the prescription at a Plan pharmacy, a non-network pharmacy, or by
mail for medications that are available through the mail order program.

We use a formulary. A formulary is a list of selected FDA approved prescription medications. Use of
formulary helps control out of pocket costs. The Preferred Care formulary is an open, clinically comprehensive
guide that was developed by nationally recognized independent group of clinicians and reviewed by Preferred
Care s P & T Committee ( a group of local physicians, pharmacists, and Preferred Care clinical pharmacy and
medical personnel) . Our formulary provides access to all FDA approved drugs with various coverage levels.

These are the dispensing limitations. You may purchase up to a 90-day supply at a Plan or non-network
pharmacy and are required to pay a copayment for each 30-day supply you purchase. The amount you pay is
based upon a three-tier copayment structure. The tiers determine the amount you pay for each 30-day supply
purchased. The three tiers are categorized as Generic Drugs; Preferred Brand Name Drugs; and Other Brand
Name Drugs.

You may purchase certain medications for up to a 90-day supply through the mail order pharmacy. A list of
therapeutic categories of prescriptions, that may be purchased through the mail order program, is available by
contacting Merck Medco at ( 800) 233-7063 or a Preferred Care Customer Care Representative at ( 716) 325-
3113 or ( 800) 950-3224, or by visiting our website at www. preferredcare. org.

You are required to pay a copayment for each 90-day supply purchased through the mail order pharmacy. The
amount you pay for medications purchased through the mail order pharmacy is also based upon the three-tier
copayment structure. The tiers are categorized as Generic Drugs, Preferred Brand Name Drugs, and Other
Brand Name Drugs. You may obtain a list of the medications covered through the mail order program by
contacting Merck Medco at ( 800) 233-7063 or a Preferred Care Customer Care Representative at ( 716) 325-
3113 or ( 800) 950-3224 or by visiting our website at www. preferredcare. org.

When an A-rated generic drug can be substituted for a name brand drug, the patient s drug benefit will be
based upon the cost of the generic drug. If the name brand drug is dispensed, the patient will pay the generic
copayment plus the difference in cost between the lower priced generic drug and the higher priced name brand
drug. If there is no A-rated generic substitute, the patient s drug benefit will be based upon the cost of the name
brand drug less the name brand copayment.

We reserve the right to determine Medical Necessity for all drugs, and may require Prior Justification of certain
drugs. Prior Justification may occur prior to the drug being dispensed in any amount or only if more than a
standard quantity limit is prescribed. To learn more about this process you may contact Merck Medco at ( 800)
233-7063 or a Preferred Care Customer Care Center Representative at ( 716) 325-3113 or ( 800) 950-3224.

Why use generic drugs? Generic drugs are typically lower priced drugs that are the therapeutic equivalent to
more expensive name brand drugs. They must contain the same active ingredients and must be equivalent in
strength and dosage to the original brand name product. Generics cost less than the equivalent name brand drug.

Section 5( f) 30
30 Page 31 32
2002 Preferred Care 31 Section Section 5( f)
The U. S. Food and Drug Administration sets quality standards for generic drugs to ensure that these drugs meet
the same standards of quality and strength as name brand drugs.

When you have to file a claim. If you use a non-plan pharmacy or do not present your identification card at a
plan pharmacy, you are required to submit a claim. You must submit original receipts along with a claim form.
You will be reimbursed at the network rate less the applicable copayment.

You Pay Benefit Description
Covered medications and supplies You Pay
We cover the following medications and supplies prescribed by a licensed
physician and obtained from a Plan pharmacy or non-network pharmacy, or
through our mail order program:

FDA approved medications for FDA approved indications that by Federal
law of the United States require a physician s prescription for their purchase.

Compounded prescriptions are a coverd item only if the main therapeutic
ingredient is a Federal Legend Drug with a National Drug Code ( NDC)
Number.

Disposable needles and syringes for the administration of covered
medications.

Drugs for sexual dysfunction have dispensing limits. Contact us for details.
Contraceptive drugs.
Drugs for infertility treatment after a medical condition has been
corrected are limited to 4 cycles per pregnancy. Pergonal/ Metrodin and
other FDA approved drugs, only after unsuccessful treatment with
Clomiphene and only when very specific clinical indications are met.
The coverage is limited to, but not exceeding, four ( 4) treatment cycles
per pregnancy. This benefit requires an approval referral for each cycle.
If no pregnancy has occurred after completion of four cycles of
Gonadotropic drugs, all fertility drug benefits are exhausted for lifetime.

Diabetic Drugs & Supplies:
Insulin and oral agents
Supplies, , including disposable needles and syringes

Diabetic medical equipment ( ( including glucose monitors) $ 10 per unit.

Not covered: All Charges
Drugs and supplies for cosmetic purposes
Vitamins and nutritional supplements that can be purchased without
a prescription.

Nonprescription medicines
Drugs to enhance athletic performance
Non-FDA approved medications (i. e. foreign medications, etc.)

At a Pharmacy
(for each 30 day supply)
$ 10 per generic prescription.
$ 20 per preferred brand name
prescription.
$ 35 per other brand name
prescription.

At Mail Order Pharmacy
(for each 90 day supply)
$ 20 per generic prescription.
$ 40 per preferred brand name
prescription.
$ 70 per other brand name
prescription.

Note: If there is no generic
equivalent available, you will still
have to pay the brand name copay.

$ 10 for each 30-day supply
$ 10 for each 90-day supply
from the mail order pharmacy. 31
31 Page 32 33
Section 32 2002 Preferred Care Section 5( g)
Section 5( g). Special features
Feature Description

Flexible benefits option Under the flexible benefits option, we determine the most effective way
to provide services.

We may identify medically appropriate alternatives to traditional care
and coordinate other benefits as a less costly alternative benefit.

Alternative benefits are subject to our ongoing review. .
By approving an alternative benefit, , we cannot guarantee you will get
it in the future.

The decision to offer an alternative benefit is solely ours, , and we may
withdraw it at any time and resume regular contract benefits.

Our decision to offer or withdraw alternative benefits is not subject to
OPM review under the disputed claims process.

Services for deaf and If you have a speech or hearing impairment and have TTY equipment,
hearing impaired you may contact us at ( 716) 325-2629.

Travel benefits/ services Urgent and emergency care only.
overseas 32
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2002 Preferred Care 33 Section
Section 5( h). Dental Benefits
Here are some important things to keep in mind about these benefits:
Please remember that all benefits are subject to the definitions, limitations, and
exclusions in this brochure and are payable only when we determine they are medically
necessary.

We have no deductible.
We cover hospitalization for dental procedures only when a nondental physical
impairment exists which makes hospitalization necessary to safeguard the health of the
patient; we do not cover the dental procedure unless it is described below.

Be sure to read Section 4, Your costs for covered services for valuable information about
how cost sharing works. Also read Section 9 about coordinating benefits with other
coverage, including with Medicare.

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Section 5( h)
You Pay Benefit Description
Accidental injury benefit You Pay
We cover restorative services and supplies necessary to promptly repair ( but $ 10 per visit
not replace) sound natural teeth. The need for these services must result from
an accidental injury. Benefits are provided only for a course of treatment that
has begun within 12 months of the injury.

Dental Benefits
We have no other dental benefits. 33
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Section 34 2002 Preferred Care
The benefits on this page are not part of the FEHB contract or premium, and you cannot file an FEHB
disputed claim about them Fees you pay for these services do not count toward FEHB out-of-pocket
maximums.

HealthPerks ssm from Preferred Care are courses, resources, and discounts available to all members of the
Plan. HealthPerks ssm provides connections to traditional and complimentary providers, all geared to giving
Plan members tools to make appropriate health and wellness decisions for themselves and their families. Our
HealthPerks ssm program was developed to encourage appropriate participation in healthful activities focusing
on preventive care to aid in improving the health status of our members.

Courses, programs and workshops cover areas such as:
CPR & First Aid,
Diet & Nutrition,
Smoking Cessation,
Women s Issues, and
Childbirth & Parenting.

Discounts are provided for purchasing health related, recreation or leisure merchandise or services from:
Weight Watchers,
Play It Again Sports,
Muxworthy s,
G& G Fitness,
Lori s Natural Foods,
and Rock Ventures to name a few.

Over twenty clubs provide plan members discounted arrangements. Discounts and schedules vary by partici-
pating vendor.

Additional HealthPerks ssm programs are:
Discounts on massage therapy,
20% discount on LASIK laser eye surgery at select locations,
Safe driving and safe boating courses at select locations,
20% discount on teeth whitening at participating dentists,
20% discount on sunglasses and safety glasses at select locations.

To receive a HealthPerks ssm brochure, call Preferred Care s Customer Care Center at ( 716) 325-3113 or toll
free at ( 800) 950-3224. Members with a speech or hearing impairment and access to TTY equipment may call
( 716) 325-2629. www. preferredcare. org Preferred Care s website provides valuable health information,
frequently asked questions, HealthPerks ssm offerings, physician listings, and important links to other sites that
can provide you with the most up to date information on health and wellness.

This plan offers Medicare recipients the opportunity to enroll in the Plan through Medicare. As indicated on
page 39, annuitants and former spouses with FEHB coverage may enroll in a Medicare managed care plan
when one is available in their area. They may then later enroll in the FEHB Program. Most Federal annuitants
have Medicare Part A. Contact your retirement system for information on dropping your FEHB enrollment
and changing to a Medicare managed care plan. Contact us at ( 716) 327-5760 for information on the Medi-
care managed care plan and the cost of that enrollment.

Section 5( i). Non-FEHB benefits available to Plan members

Section 5( i) 34
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2002 Preferred Care 35 Section
Section 6. General exclusions things we don't cover
The exclusions in this section apply to all benefits. Although we may list a specific service as a benefit, we will not
cover it unless your Plan doctor determines it is medically necessary to prevent, diagnose, or treat your illness,
disease, injury, or condition.

We do not cover the following:
Care by non-Plan providers except for authorized referrals or emergencies ( see Emergency Benefits) ;
Services, drugs, or supplies you receive while you are not enrolled in this Plan;
Services, drugs, or supplies that are not medically necessary;
Services, drugs, or supplies not required according to accepted standards of medical, dental, or psychiatric
practice;

Experimental or investigational procedures, treatments, drugs or devices;
Services, drugs, or supplies related to abortions, except when the life of the mother would be endangered if the
fetus were carried to term or when the pregnancy is the result of an act of rape or incest;

Services, drugs, or supplies related to sex transformations;
Services, drugs, or supplies you receive from a provider or facility barred from the FEHB Program

Section 6 35
35 Page 36 37
Section 36 2002 Preferred Care
Section 7. Filing a claim for covered services
When you receive services from Plan physicians, receive services at Plan hospitals and facilities, or obtain your
prescription drugs at Plan pharmacies, you will not have to file claims. Just present your identification card and pay
your copayment or coinsurance.

You will only need to file a claim when you receive emergency services from non-plan providers. Sometimes these
providers bill us directly. Check with the provider. If you need to file the claim, here is the process:

Medical and hospital In most cases, providers and facilities file claims for you. Physicians must benefits file on the form HCFA-1500, Health Insurance Claim Form. Facilities will
file on the UB-92 form. For claims questions and assistance, call us at
( 716) 325-3113.

When you must file a claim such as for out--of-area care submit it on the
HCFA-1500 or a claim form that includes the information shown below. Bills
and receipts should be itemized and show:

Covered member s name and ID number;
Name, address, and Federal Tax ID # of the physician or facility that
provided the service or supply;

Dates you received the services or supplies;
Diagnosis;
Type of each service or supply;
The charge for each service or supply;
A copy of the explanation of benefits, payments, or denial from any
primary payer such as the Medicare Summary Notice ( ( MSN) ; and

Receipts, if you paid for your services.

Submit your claims to:
Preferred Care, 259 Monroe Avenue, Rochester, New York, 14607

Prescription drugs Submit your claims to:
Paid Prescriptions, Inc. , P. O. Box 702, Parsippany, New Jersey, 07054

Deadline for filing your Send us all of the documents for your claim as soon as possible. You must claim submit the claim by December 31 of the year after the year you received the
service, unless timely filing was prevented by administrative operations of
Government or legal incapacity, provided the claim was submitted as soon as
reasonably possible.

When we need more Please reply promptly when we ask for additional information. We may delay information processing or deny your claim if you do not respond.

Section 7 36
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2002 Preferred Care 37 Section
Section 8. The disputed claims process
Follow this Federal Employees Health Benefits Program disputed claims process if you disagree with our decision on
your claim or request for services, drugs, or supplies including a request for preauthorization: :

Step Description
Ask us in writing to reconsider our initial decision. You must:
( a) Write to us within 6 months from the date of our decision; and
( b) Send your request to us at: 259 Monroe Avenue, Rochester, N. Y. 14607; and
( c) Include a statement about why you believe our initial decision was wrong, based on specific benefit
provisions in this brochure; and

( d) Include copies of documents that support your claim, such as physicians letters, operative reports, bills,
medical records, and explanation of benefits ( EOB) forms.

We have 30 days from the date we receive your request to:
( a) Pay the claim ( or arrange for the health care provider to give you the care) ; or
( b) Write to you and maintain our denial go to step 4; ; or
( c) Ask you or your provider for more information. If we ask your provider, we will send you a copy of our
request go to step 3. .

You or your provider must send the information so that we receive it within 60 days of our request. We will
then decide within 30 more days.

If we do not receive the information within 60 days, we will decide within 30 days of the date the information
was due. We will base our decision on the information we already have.

We will write to you with our decision.

If you do not agree with our decision, you may ask OPM to review it.
You must write to OPM within:
90 days after the date of our letter upholding our initial decision; or
120 days after you first wrote to us if we did not answer that request in some way within 30 days; ; or
120 days after we asked for additional information.

Write to OPM at: Office of Personnel Management, Office of Insurance Programs, Contracts Division 3,
1900 E Street, NW, Washington, D. C. 20415-3630.

Send OPM the following information:
A statement about why you believe our decision was wrong, based on specific benefit provisions in this
brochure;

Copies of documents that support your claim, such as physicians letters, operative reports, bills, medical
records, and explanation of benefits ( EOB) forms;

Copies of all letters you sent to us about the claim;
Copies of all letters we sent to you about the claim; and
Your daytime phone number and the best time to call.

1
2
3
4

Section 8 37
37 Page 38 39
Section 38 2002 Preferred Care
Note: If you want OPM to review different claims, you must clearly identify which documents apply to
which claim.

Note: You are the only person who has a right to file a disputed claim with OPM. Parties acting as your
representative, such as medical providers, must include a copy of your specific written consent with the
review request.

Note: The above deadlines may be extended if you show that you were unable to meet the deadline because
of reasons beyond your control.

OPM will review your disputed claim request and will use the information it collects from you and us to
decide whether our decision is correct. OPM will send you a final decision within 60 days. There are no
other administrative appeals.

If you do not agree with OPM s decision, your only recourse is to sue. If you decide to sue, you must file the
suit against OPM in Federal court by December 31 of the third year after the year in which you received the
disputed services, drugs, or supplies or from the year in which you were denied precertification or prior
approval. This is the only deadline that may not be extended.

OPM may disclose the information it collects during the review process to support their disputed claim
decision. This information will become part of the court record.

You may not sue until you have completed the disputed claims process. Further, Federal law governs your
lawsuit, benefits, and payment of benefits. The Federal court will base its review on the record that was
before OPM when OPM decided to uphold or overturn our decision. You may recover only the amount of
benefits in dispute.

NOTE: If you have a serious or life threatening condition ( one that may cause permanent loss of bodily
functions or death if not treated as soon as possible) , and

( a) We haven t responded yet to your initial request for care or preauthorization/ prior approval, then call us
at ( 716) 325-3113 and we will expedite our review; or

( b) We denied your initial request for care or preauthorization/ prior approval, then:
If we expedite our review and maintain our denial, we will inform OPM so that they can give your
claim expedited treatment too, or

You can call OPM s Health Benefits Contracts Division 3 at ( 202) 606-0737 between 8 a. m. and
5 p. m. eastern time.

5
6

Section 8 38
38 Page 39 40
2002 Preferred Care 39 Section
Section 9. Coordinating benefits with other coverage
When you have other You must tell us if you are covered or a family member is covered under health coverage another group health plan or have automobile insurance that pays health care
expenses without regard to fault. This is called double coverage.
When you have double coverage, one plan normally pays its benefits in full as
the primary payer and the other plan pays a reduced benefit as the secondary
payer. We, like other insurers, determine which coverage is primary according
to the National Association of Insurance Commissioners guidelines.

When we are the primary payer, we will pay the benefits described in this
brochure.

When we are the secondary payer, we will determine our allowance. After the
primary plan pays, we will pay whatever is left up to the plan allowance or our
regular benefit, whichever is less. We will not pay more than our allowance. If
we are the secondary payer, we may be entitled to receive payment from your
primary plan.

What is Medicare? Medicare is a Health Insurance Program for:
People 65 years of age and older.
Some people with disabilities, under 65 years of age.
People with End Stage Renal Disease ( permanent kidney failure requiring
dialysis or a transplant) .

Medicare has two parts:
Part A ( Hospital Insurance) . Most people do not have to pay for Part A. If
you or your spouse worked for at least 10 years in Medicare-covered
employment, you should be able to qualify for premiums-free Part A
insurance. ( Someone who was a Federal employee on January 1, 1983 or
since automatically qualifies. ) Otherwise, if you are age 65 or older, you
may be able to buy it. Contact 1-800-MEDICARE for more information.

Part B ( Medical Insurance) . Most people pay monthly for Part B. Generally,
Part B premiums are withheld from your Social Security or retirement check.

If you are eligible for Medicare, you may have choices in how you get your
health care. Medicare+ Choice is the term used to describe the various health
plan choices available to Medicare beneficiaries. The information in the next
few pages show how we coordinate benefits with Medicare, depending on the
type of Medicare managed care plan you have.

The Original The Original Medicare Plan ( ( Original Medicare) is available everywhere in
Medicare Plan the United States. It is the way everyone used to get Medicare benefits and is
(Part A or Part B) the way most people get their Medicare Part A and Part B benefits now. You
may go to any doctor, specialist, or hospital that accepts Medicare. The
Original Medicare Plan pays its share and you pay your share. Some things
are not covered under Original Medicare, like prescription drugs.

When you are enrolled in Original Medicare along with this Plan, you still
need to follow the rules in this brochure for us to cover your care. You must
use our providers.

When Medicare is the primary payer, we will waive some of your out of
pocket costs, such as copays and coinsurance.

(Primary Payer Chart appears on next page.)

Section 9 39
39 Page 40 41
Section 40 2002 Preferred Care
The following chart illustrates whether the Original Medicare Plan or this Plan should be the primary payer for you
according to your employment status and other factors determined by Medicare. It is critical that you tell us if you or
a covered family member has Medicare coverage so we can administer these requirements correctly.

Primary Payer Chart
Then the primary payer is . . .
Original Medicare This Plan
A. When either you or your covered spouse are age 65 or over and ...

Section 9
1) Are an active employee with the Federal government ( including when you
or a family member are eligible for Medicare solely because of a disability) ,

2) Are an annuitant,
3) Are a reemployed annuitant with the Federal government when
a) The position is excluded from FEHB
b) Or, the position is not excluded from FEHB
( Ask your employing office which of these applies to you. )

4) Are a Federal judge who retired under title 28, U. S. C. , or a Tax Court
judge who retired under Section 7447 of title 26, U. S. C. ( or if your
covered spouse is this type of judge) ,

5) Are enrolled in Part B only, regardless of your employment status,
( for Part B ( for other
services) services)

6) Are a former Federal employee receiving Workers Compensation and
the Office of Workers Compensation Programs has determined that ( except for claims
you are unable to return to duty, related to Workers
Compensation. )

B. When you or a covered family member have Medicare based
on end stage renal disease (ESRD) and...

1) Are within the first 30 months of eligibility to receive Part A benefits
solely because of ESRD,

2) Have completed the 30-month ESRD coordination period and are still
eligible for Medicare due to ESRD,

3) Become eligible for Medicare due to ESRD after Medicare became
primary for you under another provision,

C. When you or a covered family member have FEHB and...
1) Are eligible for Medicare based on disability,
a) And are an annuitant, or
b) Are an active employee, or
c) Are a former spouse of an annuitant, or
d) Are a former spouse of an active employee 40
40 Page 41 42

2002 Preferred Care 41 Section
Claims process when you have the Original Medicare Plan You probably
will never have to file a claim form when you have both our plan and the
Original Medicare Plan.

When we are the primary payer, we process the claim first.
When Original Medicare is the primary payer, Medicare processes your
claim first. In many cases, your claims will be coordinated automatically
and we will pay the balance of covered charges. To find out if you need to
do something about filing your claims, call us at ( 716) 325-3113 or visit our
website at www. preferredcare. org.

Medicare managed If you are eligible for Medicare, you may choose to enroll in and get your
care plan Medicare benefits from another type of Medicare+ Choice plan a Medicare
managed care plan. These are health care choices ( like HMOs) in some areas
of the country. In most Medicare managed care plans, you can only go to
doctors, specialists, or hospitals that are part of the plan. Medicare managed
care plans provide all the benefits that Original Medicare covers. Some cover
extras, like prescription drugs. To learn more about enrolling in a Medicare
managed care plan, contact Medicare at 1-800-MEDICARE ( 1-800-633-4227)
or at www. medicare. gov.

If you enroll in a Medicare managed care plan, the following options are
available to you:

This Plan and another Plan's Medicare managed care plan: You may
enroll in another plan s Medicare managed care plan and also remain enrolled
in our FEHB plan. We will still provide benefits when your Medicare managed
care plan is primary, even out of the managed care plan s network and/ or
service area ( if you use our Plan providers) . We will waive our copayments,
and/ or coinsurance when we are the secondary payer. You are required to use
Plan providers. If you enroll in a Medicare managed care plan, tell us. We will
need to know whether you are in the Original Medicare Plan or in a Medicare
managed care plan so we can correctly coordinate benefits with Medicare.

Suspended FEHB coverage and a Medicare managed care plan: If you are
an annuitant or former spouse, you can suspend your FEHB coverage to enroll
in a Medicare managed care plan, eliminating your FEHB premium. ( OPM
does not contribute to your Medicare managed care plan premium) . For
information on suspending your FEHB enrollment, contact your retirement
office. If you later want to re-enroll in the FEHB Program, generally you may
do so only at the next open season unless you involuntarily lose coverage or
move out of the Medicare managed care plan s service area.

If you do not enroll If you do not have one or both Parts of Medicare, , you can still be covered
in Medicare Part A under the FEHB Program. We will not require you to enroll in Medicare Part
or Part B B and, if you can t get premium-free Part A, we will not ask you to enroll in it.

TRICARE TRICARE is the health care program for eligible dependents of military persons, and retirees of the military. TRICARE includes the CHAMPUS
program. If both TRICARE and this Plan cover you, they pay first. See your
TRICARE Health Benefits Advisor if you have questions about TRICARE
coverage.

Section 9 41
41 Page 42 43
Section 42 2002 Preferred Care
Workers' Compensation We do not cover services that:
you need because of a workplace-related illness or injury that the Office of
Workers Compensation Programs ( OWCP) or a similar Federal or State
agency determines they must provide; or

OWCP or a similar agency pays for through a third party injury settlement
or other similar proceeding that is based on a claim you filed under OWCP
or similar laws.

Once OWCP or similar agency pays its maximum benefits for your treatment,
we will cover your care. You must use our providers

Medicaid When you have this Plan and Medicaid, we pay first.

When other Government We do not cover services and supplies when a local, State, or Federal agencies are responsible for Government agency directly or indirectly pays for them.
your care
When others are responsible When you receive money to compensate you for medical or hospital care for for injuries injuries or illness caused by another person, you must reimburse us for any
expenses we paid. However, we will cover the cost of treatment that exceeds
the amount you received in the settlement.

If you do not seek damages you must agree to let us try. This is called
subrogation. If you need more information, contact us for our subrogation
procedures.

Section 9 42
42 Page 43 44
2002 Preferred Care 43 Section Section 9 Section 10
Calendar year January 1 through December 31 of the same year. For new enrollees, the calendar year begins on the effective date of their enrollment and ends on
December 31 of the same year.
Coinsurance Coinsurance is the percentage of our allowance that you must pay for your care. See page 11.

Copayment A copayment is a fixed amount of money you pay when you receive covered services. See page 11.
Covered services Care we provide benefits for, as described in this brochure.
Custodial care Care that could be provided safely and reasonably by people without professional skills or training that is primarily to help the member with daily
living activities or meet personal needs.
Experimental or This Plan considers a drug, device, treatment, or procedure to be experimental investigational or investigational if it meets one or more of the following criteria:

1. It cannot be lawfully marketed without the approval of the FDA and such
approval has not been granted at the time of its use.

2. It is the subject of a current investigational new drug or device application
on file with the FDA.

3. It is being provided pursuant to a Phase I or Phase II clinical trial or as the
experimental or research arm of a clinical trial.

4. It is being provided pursuant to a written protocol which describes among
its objectives, determination of safety, or efficacy in comparison to
conventional alternatives.

5. The predominant opinion among experts as expressed in the published
peer review literature is that further research is necessary in order to
define safety compared with conventional alternatives.

6. It is not experimental or investigational in itself, but is being used in
conjunction with a drug, device, treatment, or procedure that is experimental
or investigational.

Group health coverage Health care coverage that a member is eligible for because of employment by, membership in, or connection with, a particular organization or group that
provides payment for hospital, medical, or other health care services or
supplies.

Medically necessary Medically necessary means that the use of services and supplies required to diagnose or treat you are:

Consistent with the symptoms or diagnosis and treatment of your
condition, disease, ailment or injury, supported by a thorough
examination, history, and tests;

Appropriate, safe, and effective with regard to generally accepted
standards of medical or surgical practice prevailing nationally or in the
geographic locality, where and when the service or item is ordered;

Supported by a thorough, reasonable consideration of the treatment
options available and a reasonable potential for therapeutic gain, and not

Section 10. Definitions of terms we use in this brochure 43
43 Page 44 45
Section 44 2002 Preferred Care
solely for appearance or recreation, or for your convenience, the convenience
of your health professional, hospital, or other provider; and

Furnished in the least intensive, most cost effective health care setting
required. When applied to inpatient care, it further means that your
medical symptoms or condition require that the diagnosis or treatment
cannot be safely provided to you as an outpatient or in a less intensive
environment.

Plan allowance Plan allowance is the amount we use to determine our payment and your coinsurance for covered services. Our plan allowance is generally based upon
a fee we negotiate with Plan providers. In some instances, our plan allowance
may be based upon submitted charges or reasonable and customary charges.

Us/ We Us and we refer to Preferred Care.
Yo u You refers to the enrollee and each covered family member.

Section 10 44
44 Page 45 46

2002 Preferred Care 45 Section Section 11
No pre-existing condition We will not refuse to cover the treatment of a condition that you had before limitation you enrolled in this Plan solely because you had the condition before you
enrolled.
Where you can get See www. opm. gov/ insure. Also, your employing or retirement office can information about enrolling answer your questions, and give you a Guide to Federal Employees Health
in the FEHB Program Benefits Plans brochures for other plans, and other materials you need to make an informed decision about:

When you may change your enrollment;
How you can cover your family members;
What happens when you transfer to another Federal agency, go on leave
without pay, enter military service, or retire;

When your enrollment ends; and
When the next open season for enrollment begins.
We don t determine who is eligible for coverage and, in most cases, cannot
change your enrollment status without information from your employing or
retirement office.

Types of coverage available Self Only coverage is for you alone. Self and Family coverage is for you, your for you and your family spouse, and your unmarried dependent children under age 22, including any
foster children or stepchildren your employing or retirement office authorizes
coverage for. Under certain circumstances, you may also continue coverage
for a disabled child 22 years of age or older who is incapable of self-support.

If you have a Self Only enrollment, you may change to a Self and Family
enrollment if you marry, give birth, or add a child to your family. You may
change your enrollment 31 days before to 60 days after that event. The Self
and Family enrollment begins on the first day of the pay period in which the
child is born or becomes an eligible family member. When you change to Self
and Family because you marry, the change is effective on the first day of the
pay period that begins after your employing office receives your enrollment
form; benefits will not be available to your spouse until you marry.

Your employing or retirement office will not notify you when a family
member is no longer eligible to receive health benefits, nor will we. Please
tell us immediately when you add or remove family members from your
coverage for any reason, including divorce, or when your child under age 22
marries or turns 22.

If you or one of your family members is enrolled in one FEHB plan, that
person may not be enrolled in or covered as a family member by another
FEHB plan.

When benefits and The benefits in this brochure are effective on January 1. If you joined this premiums start Plan during Open Season, your coverage begins on the first day of your first
pay period that starts on or after January 1. Annuitant s coverage and premiums
begin on January 1. If you joined at any other time during the year, your
employing office will tell you the effective date of coverage.

Section 11. FEHB facts 45
45 Page 46 47

Section 46 2002 Preferred Care Section 11
Your medical and claims We will keep your medical and claims information confidential. Only the records are confidential following will have access to it:
OPM, this Plan, and subcontractors when they administer this contract;
This Plan, and appropriate third parties, such as other insurance plans and
the Office of Workers Compensation Programs ( OWCP) , when
coordinating benefit payments and subrogating claims;

Law enforcement officials when investigating and/ or prosecuting alleged
civil or criminal actions;

OPM and the General Accounting Office when conducting audits;
Individuals involved in bona fide medical research or education that does
not disclose your identity; or

OPM, when reviewing a disputed claim or defending litigation about a
claim.

When you retire When you retire, you can usually stay in the FEHB Program. Generally, you must have been enrolled in the FEHB Program for the last five years of your
Federal service. If you do not meet this requirement, you may be eligible for
other forms of coverage, such as Temporary Continuation of Coverage ( TCC) .

When you lose benefits
When FEHB You will receive an additional 31 days of coverage, for no additional
coverage ends premium, when:

Your enrollment ends, unless you cancel your enrollment, or
You are a family member no longer eligible for coverage.
You may be eligible for spouse equity coverage or Temporary Continuation
of Coverage.

Spouse equity If you are divorced from a Federal employee or annuitant, you may not
coverage continue to get benefits under your former spouse s enrollment. But, you may
be eligible for your own FEHB coverage under the spouse equity law. If you
are recently divorced or are anticipating a divorce, contact your ex-spouse s
employing or retirement office to get RI 70-5, the Guide to Federal Employees
Health Benefits Plans for Temporary Continuation of Coverage and Former
Spouse Enrollees or other information about your coverage choices.

Temporary If you leave Federal service, or if you lose coverage because you no longer
Continuation of qualify as a family member, you may be eligible for Temporary Continuation
Coverage (TCC) of Coverage ( TCC) . For example, you can receive TCC if you are not able to
continue your FEHB enrollment after you retire, if you lose your job, if you
are a covered dependent child and you turn 22 or marry, etc.

You may not elect TCC if you are fired from your Federal job due to gross
misconduct.

Enrolling in TCC. Get the RI 79-27, which describes TCC, and the RI 70-5,
the Guide to Federal Employees Health Benefits Plans for Temporary
Continuation of Coverage and Former Spouse Enrollees from your employing
or retirement office or from www. opm. gov/ insure. It explains what you have to
do to enroll. 46
46 Page 47 48

2002 Preferred Care 47 Section Section 11
Converting to You may convert to a non-FEHB individual policy if:
Your coverage under TCC or the spouse equity law ends. ( If you canceled
your coverage or did not pay your premium, you cannot convert) ;

You decided not to receive coverage under TCC or the spouse equity law;
or

You are not eligible for coverage under TCC or the spouse equity law.
If you leave Federal service, your employing office will notify you of your
right to convert. You must apply in writing to us within 31 days after you
receive this notice. However, if you are a family member who is losing
coverage, the employing or retirement office will not notify you. You must
apply in writing to us within 31 days after you are no longer eligible for
coverage.

Your benefits and rates will differ from those under the FEHB Program;
however, you will not have to answer questions about your health, and we will
not impose a waiting period or limit your coverage due to pre-existing
conditions.

Getting a Certificate of The Health Insurance Portability and Accountability Act of 1996 is a Federal Group Health Plan Coverage law that offers limited Federal protections for health coverage availability and
continuity to people who lose employer group coverage. If you leave the
FEHB Program, we will give you a Certificate of Group Health Plan Coverage
that indicates how long you have been enrolled with us. You can use this
certificate when getting health insurance or other health care coverage. Your
new plan must reduce or eliminate waiting periods, limitations, or exclusions
for health related conditions based on the information in the certificate, as
long as you enroll within 63 days of losing coverage under this Plan.

If you have been enrolled with us for less than 12 months, but were previously
enrolled in other FEHB plans, you may also request a certificate from those
plans.

For more information, get OPM pamphlet RI 79-27, Temporary Continuation
of Coverage ( TCC) under the FEHB Program. See also the FEHB web site
( www. opm. gov/ insure/ health) ; refer to the TCC and HIPPA frequently asked
questions. These highlight HIPPA rules, such as the requirement that Federal
employees must exhaust any TCC eligibility as one condition for guaranteed
access to individual health coverage under HIPPA, and have information about
Federal and State agencies you can contact for more information.

Converting
to individual
coverage 47
47 Page 48 49
Section 48 2002 Preferred Care
Long Term Care Insurance Is Coming Later in 2002!
Section 7
Many FEHB enrollees think that their health plan and/ or Medicare will cover their long-term
care needs. Unfortunately, they are WRONG!

How are YOU planning to pay for the future custodial or chronic care you may need?
You should consider buying long-term care insurance.

The Office of Personnel Management ( OPM) will sponsor a high-quality long term care insurance program effective in
October 2002. As part of its educational effort, OPM asks you to consider these questions:

What is long term care It s insurance to help pay for long term care services you may need if you (LTC) insurance? can t take care of yourself because of an extended illness or injury, or an
age-related disease such as Alzheimer s.
LTC insurance can provide broad, flexible benefits for nursing home care,
care in an assisted living facility, care in your home, adult day care,
hospice care, and more. LTC insurance can supplement care provided by
family members, reducing the burden you place on them.

I'm healthy. I won't need Welcome to the club!
76% of Americans believe they will never need long term care, but the
facts are that about half of them will. And it s not just the old folks.
About 40% of people needing long term care are under age 65. They may
need chronic care due to a serious accident, a stroke, or developing
multiple sclerosis, etc.

We hope you will never need long term care, but everyone should have a
plan just in case. Many people now consider long term care insurance to
be vital to their financial and retirement planning.

Is long term care expensive? Yes, it can be very expensive. A year in a nursing home can exceed $ 50,000. Home care for only three 8-hour shifts a week can exceed
$ 20,000 a year. And that s before inflation!
Long term care can easily exhaust your savings. Long term care insurance
can protect your savings.

But won't my FEHB plan, Not FEHB. Look at the Not covered blocks in sections 5( ( a) and 5( c) of Medicare or Medicaid cover your FEHB brochure. Health plans don t cover custodial care or a stay in
my long term care? an assisted living facility or a continuing need for a home health aide to help you get in and out of bed and with other activities of daily living.
Limited stays in skilled nursing facilities can be covered in some
circumstances.

Medicare only covers skilled nursing home care ( the highest level of
nursing care) after a hospitalization for those who are blind, age 65 or
older or fully disabled. It also has a 100-day limit.

Medicaid covers long term care for those who meet their state s poverty
guidelines, but has restrictions on covered services and where they can be
received. Long-term care insurance can provide choices of care and
preserve your independence.

I'm healthy. I won't need long term care. Or, will I?

Long Term Care Insurance 48
48 Page 49 50

2002 Preferred Care 49 Section
When will I get more Employees will get more information from their agencies during the LTC information on how to apply open enrollment period in the late summer/ early fall of 2002.
Retirees will receive information at home.

How can I find out more Our toll-free teleservice center will begin in mid-2002. In the meantime, about the program NOW? you can learn more about the program on our web site at
www. opm. gov/ insure/ ltc.

When will I get more information on how to apply
for this new insurance coverage?

Long Term Care Insurnace 49
49 Page 50 51
Section 50 2002 Preferred Care Index
A injury 33
Allergy tests 16
Allogeneic ( donor) bone marrow
transplant 23
Alternative treatment 20
Ambulance 25, 27
Anesthesia 23
Autologous bone marrow
transplant 23
B 21
Blood and blood plasma 24, 25
C 24, 25
Catastrophic protection 11
Changes for 2002 8
Chemotherapy 17
Childbirth 15, 34
Chiropractic 20
Cholesterol tests 14
Claims 36
Coinsurance 11
Colorectal cancer screening 14
Congenital anomalies 21, 22
Contraceptive devices and
drugs 15, 31
Coordination of benefits 39
Covered services 43
D 11
Definitions 43
Dental care 33
Diagnostic services 13
Disputed claims process 37
Donor expenses ( transplants) 23
Dressings 24, 25
Durable medical equipment
( DME) 19
E classes and
programs 20
Effective date of enrollment 45
Emergency Benefits 26
Experimental or investigational
35, 43

Index
Do not rely on this page; it is for your convenience and does not explain your benefit coverage.
Eyeglasses 18
F planning 15
Fecal occult blood test 14
G Exclusions 35
H services 15, 18
Home health services 20
Hospice care 25
Hospital 9
I 14, 15
Infertility services 16
In hospital physician care 13
Inpatient Hospital Benefits 24
Insulin 31
L and pathology services
13, 14
M Resonance Imagings
( MRIs) 13
Mail Order Prescription Drugs
30, 31
Mammograms 14
Maternity Benefits 15
Medicaid 42
Medically necessary 43
Medicare 39
Members 7
Mental Conditions/ Substance
Abuse Benefits 28
N care 15
Non-FEHB Benefits 34
Nurse
Licensed Practical Nurse 20
Nurse Midwife 7
Registered Nurse 20
Nursery Care 15
O care 15
Occupational therapy 17
Ocular injury 18
Office visits 13
Oral and maxillofacial surgery 22
Orthopedic devices 19
Out-of-pocket maximum 11

Outpatient facility care 25
Oxygen 19
P test 14
Physical therapy 17
Physician services 13
Precertification 11
Preventive care, adult 14
Preventive care, children 15
Prescription drugs 30
Prior approval 11
Prostate cancer screening 14
Prosthetic devices 19
Psychologist 28
R therapy 17
Renal dialysis 17
Room and board 24
S surgical opinion 13
Skilled nursing facility care 25
Smoking cessation 20, 34
Speech therapy 17
Splints 24
Sterilization procedures 15
Subrogation 42
Substance abuse 28
Surgery 21
Anesthesia 23, 24, 25
Oral 22
Outpatient 21
Reconstructive 22
Syringes 31
T continuation of
coverage 46
Transplants 23
Treatment therapies 17
V services 18
W child care 15
Wheelchairs 19
Workers compensation 42
X rays 13 50
50 Page 51 52
2002 Preferred Care 51 Section Summary of Benefits
Summary of Benefits for Preferred Care -2002
Do not rely on this chart alone. All benefits are provided in full unless indicated and are subject to the defini-
tions, limitations, and exclusions in this brochure. On this page we summarize specific expenses we cover; for
more detail, look inside.
If you want to enroll or change your enrollment in this Plan, be sure to put the correct enrollment code from the
cover on your enrollment form.
We only cover services provided or arranged by Plan physicians, except in emergencies.

Benefits You Pay Page
Medical services provided by physicians: Office visit copay:
Diagnostic and treatment services provided in the office . . . . . . . . . . . . . . . . $ 10 primary care; $ 10 specialist 13

Services provided by a hospital:
Inpatient . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nothing 24
Outpatient . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nothing 25

Emergency benefits:
In-area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50 copay ( waived if admitted) 26
Out-of-area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50 copay ( waived if admitted) 26

Mental health and substance abuse treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Regular cost sharing 28
Prescription drugs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . At a Pharmacy 30
(for each 30 day supply)
$ 10 per generic prescription
$ 20 per preferred brand name
prescription
$ 35 per other brand name
prescription
At Mail Order Pharmacy
(for each 90 day supply)
$ 20 per generic prescription
$ 40 per preferred brand name
prescription
$ 70 per other brand name
prescription

Dental Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Limited benefits 33
Vision Care: 18
Annual eye refraction, including lens prescriptions $ 10 per visit
One pair of prescription eyeglasses or contact lenses The remaining cost after a discount
of 20% -60% and a credit of $ 60

Special features: 32
Flexible benefits option
Services for deaf and hearing impaired
Travel benefits/ services overseas

Protection against catastrophic costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nothing after $ 3,300 per person
( your out-of-pocket maximum) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or $ 8,400 per family enrollment 11
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . per year
Some costs do not count toward
this protection 51
51 Page 52
Section 52 2002 Preferred Care
Non-Postal Premium Postal Premium
Biweekly Monthly Biweekly
Type of Gov't Your Gov't Your USPS Your
Enrollment Share Share Share Share Share Share

Self Only GV1 $89.12 $29.70 $193.08 $64.36 $105.45 $13.37
Self and Family GV2 $223.41 $93.93 $484.06 $203.51 $263.75 $53.59

2002 Rate Information for
Preferred Care

Non-Postal rates apply to most non-Postal enrollees. If you are in a special enrollment category, refer to the FEHB
Guide for that category or contact the agency that maintains your health benefits enrollment.

Postal rates apply to career Postal Service employees. Most employees should refer to the FEHB Guide for United
States Postal Service Employees, RI 70-2. Different postal rates apply and special FEHB guides are published for
Postal Service Nurses ( see RI 70-2B) ; and for Postal Service Inspectors and Office of Inspector General ( OIG)
employees ( see RI 70-2IN) .

Postal rates do not apply to non-career postal employees, postal retirees, or associate members of any postal
employee organization who are not career postal employees. Refer to the applicable FEHB Guide.

Code 52

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