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Pages 1--59 from Physician's Health Services of New York


Page 1 2

Physicians Health Services
of New York, Inc. http:// www. health. net

2002
A Health Maintenance Organization

Serving: Dutchess, Orange, Putnam, Rockland and Westchester
Counties, the five boroughs of New York City, Nassau and
Suffolk Counties, New York

Enrollment in this Plan is limited; see page 7 for requirements.

Enrollment codes for this Plan:
PD1 Self Only
PD2 Self and Family

RI 73-531

For changes
In Benefits
See Page 8. 1
1 Page 2 3

2002 Physicians Health Services of New York, Inc. 2 Table of Contents
Table of Contents
Introduction…………………………………………………………………........................................................................ 4
Plain Language………………………………………………………………....................................................................... 4
Inspector General Advisory…………………………………………………………………………………………… 5
Section 1. Facts about this HMO plan......................................................................................................................................... 6
How we pay providers................................................................................................................................................. 6
Who provides my health care?…………………………………………………………………………….. 6
Your Rights ................................................................................................................................................................... 6
Service Area .................................................................................................................................................................. 7
Section 2. How we change for 2002………………………………………......................................................................... 8
Program-wide changes................................................................................................................................................ 8
Changes to this Plan..................................................................................................................................................... 8
Section 3. How you get care …………....................................................................................................................................... 9
Identification cards ...................................................................................................................................................... 9
Where you get covered care ....................................................................................................................................... 9
Plan providers ........................................................................................................................................................ 9
Plan facilities.......................................................................................................................................................... 9
What you must do to get covered care ..................................................................................................................... 9
Primary care ......................................................................................................................................................... 10
Specialty care ....................................................................................................................................................... 10
Hospital care......................................................................................................................................................... 11
Circumstances beyond our control.......................................................................................................................... 11
Services requiring our prior approval..................................................................................................................... 11
Section 4. Your costs for covered services............................................................................................................................... 12
Copayments ......................................................................................................................................................... 12
Deductible............................................................................................................................................................. 12
Coinsurance ......................................................................................................................................................... 12
Your out-of-pocket maximum.................................................................................................................................. 12
Section 5. Benefits…………………………………………………………....................................................................... 13
Overview...................................................................................................................................................................... 13
(a) Medical services and supplies provided by physicians and other health care professionals ............ 14
(b) Surgical and anesthesia services provided by physicians and other health care professionals ........ 23
(c) Services provided by a hospital or other facility, and ambulance services .......................................... 27
(d) Emergency services/ accidents ..................................................................................................................... 30
(e) Mental health and substance abuse benefits.............................................................................................. 32
(f) Prescription drug benefits ............................................................................................................................. 34
(g) Special features............................................................................................................................................... 38
Flexible Benefits Option 2
2 Page 3 4

2002 Physicians Health Services of New York, Inc. 3 Table of Contents
24 Hour Personal Health Advisor Line
Interactive Provider Directory
Disease State Management Programs
Services for Deaf and Hearing Impaired
(h) Dental benefits................................................................................................................................................. 39
(i) Non-FEHB benefits available to Plan members ........................................................................................ 40
Section 6. General exclusions --things we don't cover......................................................................................................... 41
Section 7. Filing a claim for covered services .......................................................................................................................... 42
Section 8. The disputed claims process..................................................................................................................................... 43
Section 9. Coordinating benefits with other coverage ............................................................................................................ 45
When you have…
Other health coverage .......................................................................................................................................... 45
Original Medicare ................................................................................................................................................. 45
Medicare managed care plan............................................................................................................................... 48
TRICARE/ Workers' Compensation/ Medicaid ...................................................................................................... 49
Other Government agencies...................................................................................................................................... 49
When others are responsible for injuries ................................................................................................................ 49
Section 10. Definitions of terms we use in this brochure ....................................................................................................... 50
Section 11. FEHB facts ................................................................................................................................................................ 52
Coverage information....................................……………………………………………………………… 52
No pre-existing condition limitation............................................................................................................. 52
Where you get information about enrolling in the FEHB Program........................................................ 52
Types of coverage available for you and your family ............................................................................... 52
When benefits and premiums start ............................................................................................................... 52
Your medical and claims records are confidential..................................................................................... 53
When you retire............................................................................................................................................... 53
When you lose benefits ........................................................................................................................................... 53
When FEHB coverage ends........................................................................................................................... 53
Spouse equity coverage ................................................................................................................................. 53
Temporary Continuation of Coverage (TCC)............................................................................................ 53
Converting to individual coverage............................................................................................................... 53
Getting a Certificate of Group Health Plan Coverage.............................................................................. 54

Long term care insurance is coming later in 2002…………………………………………………………………… 55
Index .................................................................................................................................................................................... 56

Summary of benefits ...................................................................................................................................................................... 58
Rates………………………………………………………………………………………………………….. Back cover 3
3 Page 4 5

2002 Physicians Health Services of New York, Inc. 4 Introduction/ Plan Language/ Advisory
Introduction
Physicians Health Services of New York, Inc. One Far Mill Crossing
Shelton, CT 06484
This brochure describes the benefits of Physicians Health Services of New York, Inc. under our contract (CS2527) 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.

If you are enrolled in this Plan, you are 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 8. 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 Physicians Health Services of New York, Inc.
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; brochures 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 us 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, DC 20415-3650. 4
4 Page 5 6
2002 Physicians Health Services of New York, Inc. 5 Introduction/ Plan Language/ Advisory
Inspector General Advisory
Stop health care fraud!
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 (877) 747-9585 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
Penalties for Fraud 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. 5
5 Page 6 7

2002 Physicians Health Services of New York, Inc. 6 Section 1
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, coinsurance, and deductibles described in this brochure. When you receive emergency services from
non-Plan providers, 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.

Who provides my health care?
All medical care, including hospitalization, must be provided by a Physicians Health Services of New York, Inc. Plan
physician or provider and when appropriate, Prior Authorized by the Physicians Health Services of New York, Inc. Medical Director.

Your Rights
OPM requires that all FEHB Plans to 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.

Physicians Health Services of New York, Inc. contracts with physicians and other practitioners either directly or through provider organizations (IPAs and PHOs). Most of these providers are reimbursed for each covered
service on a fee-for-service basis with a limited percentage withheld as a reserve. The withheld percentage is based on an estimate of overall utilization. However, some IPAs/ PHOs may reimburse their Primary Care
Providers on the basis of a set amount per member per month (capitated reimbursement). Depending upon the
overall utilization of members selecting Physicians Health Services of New York, Inc. 's directly contracted or an IPAs/ PHOs Primary Care Providers, the amount withheld by Physicians Health Services of New York, Inc. may

be returned to the providers. Physicians Health Services of New York, Inc. also contracts with certain vendors
and suppliers (laboratory services, home health, etc.) that are paid a capitated reimbursement. Lastly, Physicians Health Services of New York, Inc. reimburses hospitals and facilities on the basis of a per diem, case rate, or

some other form of negotiated fee.

If you want more information about us, call (877) 747-9585, or write to Physicians Health Services of New York, Inc.,
One Far Mill Crossing, Shelton, CT 06484. You may also contact us by fax at (203) 402-7056 or visit our website at www. health. net. 6
6 Page 7 8
2002 Physicians Health Services of New York, Inc. 7 Section 1
Service Area
To enroll in this Plan, you must live in or work in our Service Area. This is where our providers practice. Our service
area is Dutchess, Orange, Putnam, Rockland, and Westchester Counties, the five boroughs of New York City, Nassau and Suffolk.

Ordinarily, you must get your care from providers who contract with us. If you receive care outside our service area, we will pay only for emergency care benefits. We will not pay for any other health care services out of our service
area unless the services have prior plan approval.
If you or a covered family member move outside of our service area, you can enroll in another plan. If your dependents 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. 7
7 Page 8 9
2002 Physicians Health Services of New York, Inc. 8 Section 2
Section 2. How we change for 2002
Do not rely on these change descriptions; this page 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 changed speech therapy benefits by removing the requirement that services must be required to restore functional speech. (Section 5( a))

Changes to this Plan
Your share of the non-Postal premium will increase by 103.7% for Self Only or 80.4% for Self and Family.
We no longer limit total blood cholesterol tests to certain age groups. (Section 5( a))
We now cover routine screening for chlamydial infection. (Section 5( a))
We now cover certain intestinal transplants. (Section 5( b))
We changed the address for sending disputed claims to OPM. (Section 8)
We now provide coverage for up to $100 for one smoking cessation program per member per lifetime, including all related expenses such as drugs. 8
8 Page 9 10

2002 Physicians Health Services of New York, Inc. 9 Section 3
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 fill 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

confirmation (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 (877) 747-9585.

Where you get covered care You get care from "Plan providers" and "Plan facilities." You will only pay copayments and you will not have to file claims.
Plan providers Plan providers are physicians and other health care professionals in our service area that we contract with to provide covered services to our
members. We credential Plan providers according to national standards.
We list Plan providers in the provider directory, which we update
periodically. The list is also on our website.

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.

What you must do It depends on the type of care you need. First, you and each family to get covered care 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.

You must obtain covered services from a Plan physician or provider, except in the event of an emergency. If covered services cannot be
provided by a Plan physician or Plan provider prior approval must be
obtained in writing from the Physicians Health Services of New York, Inc. Medical Director before you may receive covered services from a

Non-plan physician or provider. Physicians Health Services of New
York, Inc. will only approve a referral to a Non-plan physician or provider if the covered services cannot be provided by a plan physician

or provider.

To see whether a physician or provider participates in the Physicians Health Services of New York, Inc. network, or to check the location and
phone number of a network specialist, hospital or urgent care center you can:
Refer to the Physicians Health Services of New York, Inc. physician
and provider directory; Call the Customer Service Department at (877) 747-9585. The

Customer Service Department can also provide you with information
regarding professional qualifications and credentials; Visit our website at www. health. net for the latest information on

Plan physicians and providers; 9
9 Page 10 11
2002 Physicians Health Services of New York, Inc. 10 Section 3
Call the Interactive Provider Directory system toll-free at (800) 686-9847 for a personalized list of local Plan physicians and providers that can be
faxed to you immediately or mailed to your home.
Primary care Your primary care physician can be an internist, family or general practice physician, an obstetrician/ gynecologist or a pediatrician for your

children.

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 Although you are not required to obtain a referral from your primary care physician to see a specialist, we recommend that you always consult your
primary care physician first.
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 work with your specialist to develop a treatment plan that allows you to see your specialist. Your primary care physician will use our
criteria when creating your treatment plan (the physician may have to get an authorization or approval beforehand).

You may request access to a specialist to coordinate your care or access to a specialty care center if you have a life-threatening or
degenerative and disabling condition or disease which requires specialized medical care over a prolonged period of time. Specialty
care may be accessed in accordance with the terms of your Plan documents.

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. 10
10 Page 11 12
2002 Physicians Health Services of New York, Inc. 11 Section 3
If you are in the second or third trimester of pregnancy and you lose access to your specialist based on the above circumstances, you can
continue to see your specialist 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 service department immediately at (877) 747-9585. 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 92 nd day after you become a member of this Plan, whichever happens first.

These provisions apply only to the benefits of the hospitalized person.
Circumstances beyond our control Under certain extraordinary circumstances, such as natural disasters, we may 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 prior approval Your primary care physician has authority to refer you for most services.
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 prior authorization. Your physician must obtain prior authorization for the followings services
including but not limited to: inpatient hospitalization, elective outpatient
surgical procedures, oxygen and related respiratory equipment, organ transplants, rehabilitative and restorative physical, occupational, speech,

respiratory therapy and skilled nursing care.
Physicians Health Services of New York, Inc. will provide the Plan physician or provider with an authorization specifying the services
requested. The Plan physician or provider will be notified prior to the initiation of the requested treatment. Any covered services received from
a Non-Plan physician or provider must also be prior authorized by
Physicians Health Services of New York, Inc. The member shall be fully responsible for the cost of services to Plan providers if prior approval for

such services has been denied by Physicians Health Services of New
York, Inc. and the member has been notified of such determination in advance of receiving the services. 11
11 Page 12 13
2002 Physicians Health Services of New York, Inc. 12 Section 4
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. when you receive services.

Example: When you see your primary care physician you pay a copayment of $10 per office visit and when you go in the hospital, you
pay nothing per admission.
Deductible We do not have a deductible

Coinsurance We do not have coinsurance.
Your catastrophic protection After your copayments total $1,500 per person or $3,000 per family out-of-pocket maximum enrollment in any calendar year, you do not have to pay any more for

for copayments covered services. However, copayments for the following services do not count toward your out-of-pocket maximum, and you must continue to
pay copayments for these services:
Prescription Drugs
Be sure to keep accurate records of your copayments since you are responsible for informing us when you reach the maximum. 12
12 Page 13 14

2002 Physicians Health Services of New York, Inc. 13 Section 5
Section 5. Benefits --OVERVIEW
(See page 8 for how our benefits changed this year and page 58 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 (877) 747-9585or at our website at www. health. net.

(a) Medical services and supplies provided by physicians and other health care professionals ............................... 14-22

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

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

(b) Surgical and anesthesia services provided by physicians and other health care professionals .................…… 23-26
Surgical procedures Reconstructive surgery Oral and maxillofacial surgery Organ/ tissue transplants
Anesthesia
(c) Services provided by a hospital or other facility, and ambulance services............................................................. 27-29
Inpatient hospital Outpatient hospital or ambulatory surgical
center
Extended care benefits/ skilled nursing care facility benefits
Hospice care Ambulance

(d) Emergency services/ accidents ................................................................................................................................ 30-31
Medical emergency Ambulance

(e) Mental health and substance abuse benefits ........................................................................................................ 32-33
(f) Prescription drug benefits................................................................................................................................................ 34-37
(g) Special features ....................................................................................................................................................................... 38 Flexible benefits option

Personal Health Advisor Line
Interactive Provider Directory
Disease State Management Programs
(h) Dental benefits......................................................................................................................................................................... 39
(i) Non-FEHB benefits available to Plan members ................................................................................................................ 40

Summary of benefits ..................................................................................................................................................................... 58 13
13 Page 14 15
2002 Physicians Health Services of New York, Inc. 14 Section 5( a)
Section 5 (a) Medical services and supplies provided by physicians and other health care professionals
I M
P O
R T
A N
T

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.

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.

I M
P O
R T
A N
T

Benefit Description You pay
Diagnostic and treatment services
Professional services of physicians
In physician's office

$10 per office visit

Professional services of physicians
Office medical consultations
Second surgical opinion

$10 per office visit

At home
During a hospital stay
Nothing

Lab, X-ray and other diagnostic tests
Tests, such as:
Blood tests
Urinalysis
Non-routine pap tests
Pathology
X-rays
Non-routine Mammograms
Cat Scans/ MRI
Ultrasound
Electrocardiogram and EEG

Nothing 14
14 Page 15 16
2002 Physicians Health Services of New York, Inc. 15 Section 5( a)
Preventive care, adult You pay
Routine screenings, such as:
Total Blood Cholesterol – once every three years
Colorectal Cancer Screening, including
Fecal occult blood test
Sigmoidoscopy, screening – every five years starting at age 50

$10 per office visit

Prostate Specific Antigen (PSA test) – one annually for men who are symptomatic; whose biological father or brother have been diagnosed with
prostate cancer; and for all men age 40 and over
$10 per office visit

Routine pap test
Note: The office visit is covered if pap test is received on the same day; see
Diagnostic and Treatment Services, above.

$10 per office visit

Routine mammogram –covered for women age 35 and older, as
follows:

From age 35 through 39, one during this five year period
From age 40 and older , one every calendar year

Nothing

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

Routine Immunizations, limited to:
Tetanus-diphtheria (Td) booster – once every 10 years, ages19 and over (except as provided for under Childhood immunizations)

Influenza/ Pneumococcal vaccines, annually, age 65 and over

Nothing

Preventive care, children
Childhood immunizations recommended by the American Academy of Pediatrics Nothing

Well-child care charges for routine examinations, immunizations and care ( up to age 22)
Examinations, such as:
Eye exams through age 19 to determine the need for vision correction.

Ear exams through age 19 to determine the need for hearing correction
Examinations done on the day of immunizations (up to age 22)

Nothing 15
15 Page 16 17
2002 Physicians Health Services of New York, Inc. 16 Section 5( a)
Maternity care You pay
Complete maternity (obstetrical) care, such as:
Prenatal care
Delivery
Postnatal care
Note: Here are some things to keep in mind:
You do not need to precertify your normal delivery; see page 11 for other circumstances, such as extended stays for you or your baby.

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).

Nothing

Not covered: Routine sonograms to determine fetal age, size or sex All charges
Family planning
A broad range of voluntary family planning services, limited to:
Voluntary sterilization
Diaphragms
NOTE: We cover oral contraceptives under the prescription drug
benefit.

$10 per office visit

Not covered: reversal of voluntary surgical sterilization, genetic
counseling,
All charges.

Infertility services
Diagnosis and treatment of infertility, such as:
Artificial insemination:
intrauterine insemination (IUI)
Fertility drugs are covered under the Prescription Drug Benefit only when administered in connection with the treatment of a covered

infertility service, such as IUI.

$10 per office visit 16
16 Page 17 18
2002 Physicians Health Services of New York, Inc. 17 Section 5( a)
Infertility services (continued) You Pay
Not covered:
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

Fertility drugs used as part of excluded infertility treatment, such as
In vitro fertilization.

Cost of donor sperm
Cost of donor egg

All charges.

Allergy care
Testing and treatment
Allergy injection
$10 per office visit

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

Treatment therapies
Chemotherapy and radiation therapy
Note: High dose chemotherapy in association with autologous bone marrow transplants are limited to those transplants listed under

Organ/ Tissue Transplants on page 25.
Respiratory and inhalation therapy
Dialysis – Hemodialysis and peritoneal dialysis
Intravenous (IV)/ Infusion Therapy – Home IV and antibiotic therapy

Growth hormone therapy (GHT) is covered under the medical benefit
Lyme disease treatment that is medically necessary and appropriate including at least 30 days of intravenous antibiotic therapy, and/ or 60
days of oral antibiotic therapy. Coverage shall include further treatment by a board certified rheumatiologist, infectious disease specialist or
neurologist.

Nothing 17
17 Page 18 19
2002 Physicians Health Services of New York, Inc. 18 Section 5( a)
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 on an outpatient basis, as part of an approved
cardiac rehabilitation program for a maximum of 12 weeks following a myocardial infarction or cardiac surgery.

$10 per office visit
Nothing per visit during covered inpatient admission.

Not covered:
long-term rehabilitative therapy
exercise programs

All charges.

Speech therapy
Two (2) consecutive months per condition with approval from the Medical Director $10 per office visit

Hearing services (testing, treatment, and supplies)
First hearing aid and testing only when necessitated by accidental injury

Hearing testing for children through age 19 (see Preventive care,
children)

$10 per office visit

Not covered:
all other hearing testing
hearing aids, testing and examinations for them

All charges. 18
18 Page 19 20
2002 Physicians Health Services of New York, Inc. 19 Section 5( a)
Vision services (testing, treatment, and supplies) You pay
Vision therapy services (orthoptics and/ or pleoptic therapy) are covered to a maximum of 3 visits per member per calendar year. This is not
intended to exclude coverage for medically necessary and appropriate
treatment for diseases of the eye.

$10 per office visit

One routine eye examination (including refraction) per calendar year for members to the attainment of nineteen (19) years of age; one (1) routine
eye examination (including refraction) every two (2) calendar years for members age nineteen (19) years of age and older (see preventive care)
$10 per office visit

Not covered:
Eyeglasses or contact lenses and, after age 19, examinations for them

Eye exercises
Radial keratotomy and other refractive surgery

All charges.

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

Not covered:
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)

All charges. 19
19 Page 20 21
2002 Physicians Health Services of New York, Inc. 20 Section 5( a)
Orthopedic and prosthetic devices You pay
Externally worn breast prostheses and surgical bras, including necessary replacements, following a mastectomy

External prosthetic devices, such as artificial limbs, are limited to a maximum payment by the Plan of $5,000 for the initial appliance
and $500 per necessary replacement prosthetic.
Internal prosthetic devices, such as artificial joints, pacemakers, cochlear implants, and surgically implanted breast implant

following mastectomy. Note: See 5( b) for coverage of the surgery to insert the device.

Corrective orthopedic appliances for non-dental treatment of temporomandibular joint (TMJ) pain dysfunction syndrome.

Nothing

Not covered:
orthopedic and corrective shoes
arch supports
foot orthotics
heel pads and heel cups
lumbosacral supports
corsets, trusses, elastic stockings, support hose, and other supportive devices

prosthetic replacements provided less than 3 years after the last one we covered

All charges.

Durable medical equipment (DME)
Durable Medical Equipment such as wheelchairs and hospital beds, and orthopedic devices such as braces are limited to the initial appliance or
piece of equipment.
50% of the cost of the covered item to a maximum of $1,500 per
member per calendar year

Not covered:
Motorized wheel chairs All charges. 20
20 Page 21 22
2002 Physicians Health Services of New York, Inc. 21 Section 5( a)
Home health services You Pay
Home health care ordered by a Plan physician and provided by a 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.

Nothing

Not covered:
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.

All charges.

Chiropractic
Chiropractic services as medically necessary $10 per office visit

Alternative treatments
Acupuncture services are covered when approved in advance up to 20 visits per member per calendar year. $20 per office visit

Biofeedback according to approved medical criteria when medically necessary and appropriate and prior authorized by Physicians Health
Services of New York, Inc.

$10 per office visit 21
21 Page 22 23
2002 Physicians Health Services of New York, Inc. 22 Section 5( a)
Alternative treatments You Pay
Not covered:

hypnotherapy
naturopathy services

All charges.

Educational classes and programs
Coverage is limited to:

Smoking Cessation – Up to $100 for one smoking cessation program per member per lifetime, including all related expenses such as drugs.

Diabetes outpatient self-management training, which includes, but is not limited to, education and medical nutrition therapy. Diabetic self-management
training shall be provided by a certified, registered or licensed health care professional trained in the care and management
of diabetes. Therapy visits are limited to those visits that are medically necessary and appropriate.

$10 per office visit 22
22 Page 23 24
2002 Physicians Health Services of New York, Inc. 23 Section 5( b)
Section 5 (b). Surgical and anesthesia services provided by physicians and other health care professionals
I M
P O
R T
A N
T

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.
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 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.).
YOUR PHYSICIAN MUST GET PRECERTIFICATION OF SOME SURGICAL PROCEDURES. Please refer to the precertification information shown in Section 3 to be sure

which services require precertification and identify which surgeries require precertification.

I M
P O
R T
A N
T

Benefit Description You pay
Surgical procedures
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
Insertion of internal prosthetic devices. See 5( a) – Orthopedic and prosthetic devices for device coverage information.

$10 per office visit; nothing for inpatient hospital visits

Voluntary sterilization
Note: Generally, we pay for internal prostheses (devices) according to where the procedure is done. For example, we pay Hospital benefits for
a pacemaker and Surgery benefits for insertion of the pacemaker.

$10 per office visit; nothing for inpatient hospital visits

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

All charges. 23
23 Page 24 25
2002 Physicians Health Services of New York, Inc. 24 Section 5( b)
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.

$10 per office visit; nothing for inpatient or outpatient hospital
surgical visits

All stages of breast reconstruction surgery following a mastectomy, such as:
surgery to produce a symmetrical appearance on the other breast;
treatment of any physical complications, such as lymphedemas;
breast prostheses and surgical bras and replacements (see Prosthetic devices)

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

See above.

Not covered:
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

All charges

Oral and maxillofacial surgery
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.
TMJ surgery and other non-dental treatment.

$10 per office visit; nothing for inpatient hospital visits 24
24 Page 25 26
2002 Physicians Health Services of New York, Inc. 25 Section 5( b)
Oral and maxillofacial surgery (continued) You pay
Not covered:
Oral implants and transplants
Procedures that involve the teeth or their supporting structures (such
as the periodontal membrane, gingiva, and alveolar bone)

All charges.

Organ/ tissue transplants
Limited to:
Cornea
Heart
Heart/ lung
Kidney
Kidney/ Pancreas
Liver
Lung: Single –Double
Pancreas
Allogeneic (donor) 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; and testicular, mediastinal, retroperitoneal and ovarian germ
cell tumors

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.

Nothing

Not covered:
Donor screening tests and donor search expenses, except those
performed for the actual donor
Implants of artificial organs

Transplants not listed as covered

All charges 25
25 Page 26 27
2002 Physicians Health Services of New York, Inc. 26 Section 5( b)
Anesthesia You pay
Professional services provided in –

Hospital (inpatient)
Nothing

Professional services provided in –
Hospital outpatient department Skilled nursing facility
Ambulatory surgical center

Nothing

Professional services provided in –
Office
$10 per office visit 26
26 Page 27 28
2002 Physicians Health Services of New York, Inc. 27 Section 5( c)
Section 5 (c). Services provided by a hospital or other facility, and
ambulance services

I M
P O
R T
A N
T

Here are some important things to remember 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 and you must be hospitalized in a Plan facility.

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 Sections 5( a) or (b).

YOUR PHYSICIAN MUST GET PRECERTIFICATION OF HOSPITAL
STAYS.
Please refer to Section 3 to be sure which services require precertification.

I M
P O
R T
A N
T

Benefit Description You pay
Inpatient hospital
Room and board, such as
ward, semiprivate, or intensive care accommodations; general nursing care

meals and special diets; special duty nursing when medically necessary; and
private room when medically necessary

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

Nothing

Inpatient hospital continued on next page. 27
27 Page 28 29
2002 Physicians Health Services of New York, Inc. 28 Section 5( c)
Inpatient hospital (Continued) You pay
Other hospital services and supplies, such as:
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
Take-home items Medical supplies, appliances, medical equipment, and any covered

items billed by a hospital for use at home

Nothing

Not covered:
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

All charges

Outpatient hospital or ambulatory surgical center
Operating, recovery, and other treatment rooms
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.

Nothing

Not covered: blood and blood derivatives not replaced by the member All charges
Extended care benefits/ skilled nursing care facility benefits
Extended care benefit: Rehabilitative and restorative physical,
occupational, speech, respiratory therapy and skilled nursing care is limited to a combined maximum of 90 days per calendar year, when

prior approval is obtained from Physicians Health Services of New
York, Inc. and when services are performed in a Plan inpatient facility. Up to 60 days may be used for inpatient rehabilitation (physical,

occupational, speech, respiratory therapy)

Nothing

Not covered: custodial care All charges 28
28 Page 29 30
2002 Physicians Health Services of New York, Inc. 29 Section 5( c)
Hospice care You pay
Supportive and palliative care for a terminally ill member is covered in the home or hospice facility. Services include inpatient and outpatient

care, and family counseling; these services are provided under the direction of a Plan physician who certifies that the patient is in the
terminal stages of illness, with a life expectancy of approximately 6
months or less.

Nothing

Not covered: Independent nursing, homemaker services All charges
Ambulance
Local professional ambulance service when medically appropriate Nothing 29
29 Page 30 31
2002 Physicians Health Services of New York, Inc. 30 Section 5( d)
Section 5 (d). Emergency services/ accidents
I M
P O
R T
A N
T

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.

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.

I M
P O
R T
A N
T
What is a medical emergency?
A medical emergency is the sudden and unexpected onset of a condition or an injury that you believe endangers 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 our service area:
If you are in an emergency situation, please call your primary care physician. In extreme emergencies, if you are unable to contact your physician, contact the
local emergency system (e. g., the 911 telephone system) or go to the nearest hospital emergency room. Be
sure to tell the emergency room personnel that you are a Plan member so they can notify the Plan. You or a family member should notify the Plan within 48 hours. It is your responsibility to ensure that the Plan

has been timely notified. If you need to be hospitalized in a Non-Plan facility, the Plan must be notified
within 48 hours or on the first working day following your admission, unless it was not reasonably possible to notify the Plan within that time. If you are hospitalized in a Non-Plan facility and Plan

physicians believe care can be better provided in a Plan hospital, you will be transferred when medically
feasible with any ambulance charges covered in full.

Benefits are available for care from Non-Plan providers in a medical emergency only if delay in reaching
Plan provider wold result in death, disability or significant jeopardy to your condition.

Plan pays reasonable charges for emergency care services to the extent the services would have been
covered if received from Plan providers.

You pay $50 per emergency room visit, $25 per urgent care center visit or $10 copay per doctor's office
visit for emergency care services that are covered benefits by this Plan. If the emergency results in admission to a hospital, the emergency room copay is waived.

Emergencies outside our service area: Benefits are available for any medically necessary health service that is immediately required because of an injury or unforeseen illness. If you need to be
hospitalized, the Plan must be notified within 48 hours or on the first working day following your
admission, unless it was not reasonably possible to notify the Plan within that time. If you are hospitalized in Non-Plan facilities and Plan doctors believe care can be better provided in a Plan hospital, you will be

transferred when medically feasible with any ambulance charges covered in full. To be covered by this
Plan any follow-up care recommended by Non-Plan providers must be approved by the Plan or Plan providers. If you are hospitalized in Non-Plan facilities and Plan physicians believe care can be better

provided in a Plan hospital, you will be transferred when medically feasible with any ambulance charges
covered in full. 30
30 Page 31 32
2002 Physicians Health Services of New York, Inc. 31 Section 5( d)
To be covered by this Plan any follow-up care recommended by Non-Plan providers must be prior authorized by the Plan.
Plan pays reasonable charges for emergency care services to the extent the services would have been
covered if received by Plan providers.

You pay $50 per emergency room visit, $25 per urgent care center visit or $10 copay per doctor's office visit for emergency care services that are covered benefits by this Plan. If the emergency results in

admission to a hospital, the emergency room copay is waived.

Benefit Description You pay
Emergency within our service area

Emergency care at a doctor's office $10 per visit
Emergency care at an urgent care center $25 per visit
Emergency care as an outpatient or inpatient at a hospital,
including doctors' services, copay waived if admitted $50 per visit

Not covered: Elective care or non-emergency care All charges.
Emergency outside our service area

Emergency care at a doctor's office $10 per visit

Emergency care at an urgent care center $25 per visit
Emergency care as an outpatient or inpatient at a hospital,
including doctors' services, copay waived if admitted $50 per visit

Not covered:
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

All charges.

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

Not covered: air ambulance All charges. 31
31 Page 32 33
2002 Physicians Health Services of New York, Inc. 32 Section 5( e)
Section 5 (e). Mental health and substance abuse benefits
I M
P O
R T
A N
T

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.

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 PREAPPROVAL OF THESE SERVICES. See the instructions after the benefits description below.

I M
P O
R T
A N
T

Benefit Description You pay
Mental health and substance abuse benefits
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.

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

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

Medication management

$10 per visit

Mental health and substance abuse benefits -Continued on next page 32
32 Page 33 34
2002 Physicians Health Services of New York, Inc. 33 Section 5( e)
Mental health and substance abuse benefits (Continued) You pay
Diagnostic tests Nothing
Services provided by a hospital or other facility
Services in approved alternative care settings such as partial
hospitalization, half-way house, residential treatment, full-day hospitalization, facility based intensive outpatient treatment
{plan-specific
explanation of this information}

Nothing

Not covered: Services we have not approved.
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.

All charges.

Preauthorization To be eligible to receive these benefits you must follow your treatment plan and all the following authorization processes:
Your Plan physician will request prior approval from us for all necessary services. The service must be approved before it is rendered to receive
coverage. You, or a provider acting on your behalf, may call our Prior Approval Department at (800) 438-7886 for information. You will be
notified of any denials.

Although you are not required to obtain a referral from your PCP to see a
specialist, we recommend that you always consult your PCP first.

In this plan, you must see Plan physicians and providers, except in the event of a medical emergency, or when we have authorized the services to be

performed by Non-Plan providers because the service is not available from Plan providers.

Limitation We may limit your benefits if you do not obtain a treatment plan. 33
33 Page 34 35
2002 Physicians Health Services of New York, Inc. 34 Section 5( f)
Section 5 (f). Prescription drug benefits
I
M
P
O
R
T
A
N
T

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.
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.

I
M
P
O
R
T
A
N
T

There are important features you should be aware of. These include:
Who can write your prescription. A licensed Plan physician or referral doctor must write the prescription.

Where you can obtain them. You may fill the prescription at a Plan pharmacy, or through the Physicians Health Services of New York, Inc. mail order supplier.
We use a formulary. The Plan uses a formulary that includes generic and preferred name brand drugs. The Plan's Pharmacy and Therapeutics Committee meets on a quarterly basis to review new
medications to be added to or deleted from the formulary.
Review for additions to the formulary are based primarily on the following:
1. new drug therapies introduced;
2. changes in existing drug therapies; and
3. requests received from Plan physicians.
The criteria used are the safety and efficacy of the drug, other similar products available, and its relative cost. Deletions are decided by the committee based on low utilization, other types of equivalent

therapy, or negative changes in existing drug therapies. Your doctor can ask for exceptions to the formulary. Nonformulary drugs will be covered when prescribed by a Plan doctor.

We have an open formulary. If your physician believes a name brand product is necessary or there is
no generic available, your physician may prescribe a name brand drug from a formulary list. This list of name brand drugs is a preferred list of drugs that we selected to meet patient needs at a lower cost.

To order a prescription drug brochure, call (877) 747-9585.
Please Note: All brand name drugs that are not listed in the preferred drug formulary will be subject to
the highest copayment.

These are the dispensing limitations. Prescription drugs prescribed by a Plan or referral physician and obtained at a Plan pharmacy will be dispensed for up to a 34-day maximum. You pay a $10

copayment per prescription unit or refill for generic formulary drugs, $20 for preferred brand name, and $35 for all others. The cost of prescriptions filled through the Plan's mail order supplier will be
equal to 2 copayments for a 90-day supply.
A generic equivalent will be dispensed if it is available, unless your physician specifically requires a name brand. If you receive a name brand drug when a Federally-approved generic drug is available,

and your physician has not specified Dispense as Written for the name brand drug, you have to pay the difference in cost between the name brand drug and the generic. 34
34 Page 35 36
2002 Physicians Health Services of New York, Inc. 35 Section 5( f)
Why use generic drugs? To reduce your out-of-pocket expenses! A generic drug is the chemical equivalent of a corresponding brand name drug. Generic drugs are less expensive than brand name
drugs; therefore you may reduce your out-of-pocket costs by choosing to use a generic drug.
When you have to file a claim. You normally won't have to submit claims to us unless you receive emergency services from a provider who doesn't contract with us. If you do receive a bill and need to

file a claim, please send us all of the documents for your claim as soon as possible. You must submit claims by December 31 of the year after the year you received the service. Either OPM or we can
extend this deadline if you show that circumstances beyond your control prevented you from filing on time.

Prescription drug benefits begin on the next page. 35
35 Page 36 37
2002 Physicians Health Services of New York, Inc. 36 Section 5( f)
Benefit Description You pay
Covered medications and supplies
We cover the following medications and supplies prescribed by a Plan physician and obtained from a Plan pharmacy or through our mail order

program:

Drugs and medicines that by Federal law of the United States require a physician's prescription for their purchase, except as
excluded below.
Insulin with a copay charge applied to each vial
Diabetic equipment, supplies and medication Disposable needles and syringes for the administration of covered

prescribed medications
Intravenous fluids and medications for home use (covered under Medical and Surgical benefits as a home health service)

Nutritional supplements for the treatment of phenylkenoturia, branch-chained kenoturia, galactosemia and homocystinuria
Drugs for sexual dysfunction Oral and injectable contraceptives and contraceptive devices,
including implanted contraceptive devices such as Norplant and
Depo Provera
Fertility drugs used in connection with covered infertility treatments, such as IUI

Immunosuppressive drugs
Note: – We will only cover GHT when we preauthorize the treatment.

Call (877) 747-9585 for preapproval. We will ask you to submit information that establishes that the GHT is medically necessary. Ask us
to authorize GHT before you begin treatment; otherwise, we will only cover GHT services from the date you submit the information. If you do
not ask or if we determine GHT is not medically necessary, we will not
cover the GHT or related services and supplies. See Services requiring our
prior approval
in Section 3.

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

$10 for generic drugs.
$20 for preferred brand name
drugs

$35 for all other covered drugs 36
36 Page 37 38
2002 Physicians Health Services of New York, Inc. 37 Section 5( f)
Covered medications and supplies (continued) You pay
Not covered:
Drugs and supplies for cosmetic purposes
Vitamins, nutrients and food supplements even if a physician prescribes or administers them

Nonprescription medicines
Drugs for which there is a nonprescription equivalent available
Drugs obtained at a Non-Plan pharmacy except for out-of-area emergencies

Medical supplies such as dressings and antiseptics
Prescription drugs obtained for use in connection with drug addiction

Drugs to enhance athletic performance
Smoking cessation drugs and medication including nicotine patches
Fertility drugs used as part of excluded infertility treatments, such as In vitro fertilization.

All Charges 37
37 Page 38 39
2002 Physicians Health Services of New York, Inc. 38 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.

24 hour Personal
Health Advisor line

Our free Personal Health Advisor phone line is available 24 hours a
day, seven days a week to answer your health-related questions. If you are sick or have been hurt, and are unsure of what to do, a

specially trained nurse can help you determine the most appropriate
course of action. The 550 nurses that staff the phones average more than 15 years of clinical experience. Together, they handle 2 million

calls every year. If you ever need help assessing an injury or illness,
call the Personal Health Advisor line, toll-free at (800) 219-5326.

Interactive Provider
Directory

Even when you do not have access to our printed directory or to the Internet, you can still locate a Plan physician or provider. Our

Interactive Provider Directory system via touch-tone phone enables you to have a personalized list of local physicians or providers either
faxed to you immediately or mailed to your home. The system will
find 100 closest Plan Providers to the zip code you supply. To access the Interactive Provider Directory, call toll-free, (800) 686-9847.

Disease State
Management Programs

Disease State Management programs help members manage their
chronic conditions. When you are facing the challenges of diabetes, congestive heart disease, asthma, glaucoma, osteoporosis, kidney

disease and other chronic conditions, we can help with our education
and care-management program. For more information, call toll-free (800) 573-2177

Services for deaf and
hearing impaired

Services for the deaf and hearing impaired can be accessed by calling
(888) 747-2424 38
38 Page 39 40
2002 Physicians Health Services of New York, Inc. 39 Section 5( h)
Section 5 (h). Dental benefits
I M
P O
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A N
T

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 dentists must provide or arrange your care.
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.

I M
P O
R T
A N
T
Accidental injury benefit You pay
We cover restorative services and supplies necessary to promptly repair
(but not replace) sound natural teeth (1) resulting from accidental injury, when services are received within 12 months of the accident; or

(2) that is necessary due to congenital disease or anomaly.

$10 per office visit; nothing for
inpatient services

Dental benefits
We have no other dental benefits. 39
39 Page 40 41
2002 Physicians Health Services of New York, Inc. 40 Section 5( i )
Section 5 (i). Non-FEHB benefits available to Plan members
The benefits described on this page are neither offered nor guaranteed under the contract with the FEHB Program, but are made available to all enrollees and family members who are members of this Plan. The cost of the benefits

described on this page is not included in the FEHB premium, and any charges for these services do not count toward
any FEHB deductibles or out-of-pocket maximums. These benefits are subject to the FEHB disputed claims procedure.
The Physicians Health Services of New York, Inc. "Healthy Extras" Program

Physicians Health Services of New York, Inc. AlternaCare SM : This holistic health care program provides benefits for chiropractic and acupuncture services, and offers discounts for massage therapy, nutritional supplements and
vitamins.
TruVision SM : Get contact lenses and related supplies for up to a 50-percent savings. They are shipped directly to your home, at no additional cost.

Fitness Center Discount Program: Receive 20 to 30 percent off monthly fees at participating fitness centers through a health and fitness network administered by WellQuest, Inc.
Well Women For Life: Physicians Health Services of New York, Inc. leads the way in meeting the unique health needs of women with our breast cancer screening program and reminder mailings for mammograms and cervical
cancer screenings. Osteoporosis and menopause education materials also are available.
Smart Start: This reminder program helps parents keep track of their children's immunizations and provides educational material explaining the importance of receiving these immunizations prior to age two.

WellBaby SM : This program helps members have the healthiest possible pregnancies by complementing the advice and care of the obstetricians.

Dental Care Services – Physicians Health Services of New York, Inc. members may enroll in Dentcare a Managed Care dental program offered by Dentcare Delivery Systems, Inc. licensed by the New York State Insurance Department. Dentcare's
program provides members with access to a wide range of dental benefits with a special emphasis on preventive dentistry. Benefits are available for preventive, basic and major care, including orthodontics. To enroll with Dentcare, simply complete
the enclosed dental application and send it along with an annual premium check directly to Dentcare, Delivery Systems, Inc., Attn: Sue Merkle, 60 Charles Lindbergh Blvd., Uniondale, NY 11553. Be sure to select a family dentist from their list since
covered services must be rendered by a participating general dentist. The following is an example of some of the benefits
available at participating dentists: Diagnostic and Preventive Services Restorative Dentistry Primary And Permanent

Full mouth x-rays No Charge Silver Amalgam, one surface $10.00
Oral exam (once every six months) No Charge Silver Amalgam, two surfaces $20.00 Flouride treatment No Charge Silver Amalgam 3 surfaces or more $30.00

Oral Surgery Prosthetics— Crowns
Routine extractions, per tooth No Charge Acrylic w/ metal crown $175.00 Orthodontics

Porcelain w/ metal crown $295.00 Maximum case fee— 24 month treatment $1,950.00
Dependent children covered to age 19, or to age 23 if full-time students.
Dentcare materials have been provided by Dentcare Delivery Systems, Inc., for your review and consideration. Dentcare is not affiliated with Physicians Health Services of New York, Inc. or Health Net, Inc. Dentcare is solely responsible for
coverage, plan designs, provider network and all other services it offers. If you have any questions about Dentcare, please
call a Dentcare representative at (800) 468-0608 extension 2269.

Physicians Health Services of New York, Inc. SmartChoice SM Medicare+ Choice Program -Medicare beneficiaries have the opportunity to enroll in the Physicians Health Services of New York, Inc. SmartChoice SM
Medicare+ Choice plan. If you are an annuitant or former spouse, you can suspend your FEHB coverage and enroll in a Medicare+ Choice plan when one is available in your area. (For details, see page 48 inside this brochure.) Physicians
Health Services of New York, Inc. has more than a decade of experience with Medicare-approved health plans. We are committed to providing our members with high quality, easily accessible and affordable health care coverage with
outstanding customer service. If you are interested in enrolling in PHS SmartChoice SM , please call (800) 747-1823 toll-free
for more information. Medicare-approved health plans.

We are committed to providing members with high quality, easily accessible and affordable health care coverage with
unsurpassed customer service. If you are interested in enrolling in PHS SmartChoice SM , please call (800) 747-1823 toll-free
for more information. 40
40 Page 41 42
2002 Physicians Health Services of New York, Inc. 41 Section 6
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 and we agree, as discussed under
What Services Require

Our Prior Approval on page 11
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; or
Services, drugs, or supplies you receive from a provider or facility barred from the FEHB Program. 41
41 Page 42 43
2002 Physicians Health Services of New York, Inc. 42 Section 7
Section 7. Filing a claim for covered services
When you see 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, coinsurance, or deductible.

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, hospital In most cases, providers and facilities file claims for you. Physicians and prescription drug benefits must 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 (877) 747-9585.

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 and address 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: Health Net, Formerly PHS Health Plans
P. O. Box 981 Bridgeport, CT 06601-0981

Attention: Claims Only
Deadline for filing your claim Send us all of the documents for your claim as soon as possible. You must 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 information Please reply promptly when we ask for additional information. We may delay processing or deny your claim if you do not respond. 42
42 Page 43 44
2002 Physicians Health Services of New York, Inc. 43 Section 8
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 preapproval:

Step Description

1 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: Physicians Health Services of New York, Inc., One Far Mill Crossing, Shelton, CT 06484; 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.

2 We have 30 days from the date we receive your request to: (a) Pay the claim (or, if applicable, 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.

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.

4 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. 43
43 Page 44 45
2002 Physicians Health Services of New York, Inc. 44 Section 8
The Disputed Claims process (Continued)
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.

5 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.

6 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
(877) 747-9585 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. 44
44 Page 45 46
2002 Physicians Health Services of New York, Inc. 45 Section 9
Section 9. Coordinating benefits with other coverage
When you have other health coverage
You must tell us if you are covered or a family member is covered under 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.
If we pay second, we will determine what the reasonable charge for the benefit should be. After the first plan pays, we will pay either what is left
of the reasonable charge or our regular benefit, whichever is less. We
will not pay more than the reasonable charge. If we are the secondary payer, we may be entitled to receive payment from your primary plan.

We will always provide you with the benefits described in this brochure. Remember: even if you do not file a claim with your other plan, you
must still tell us that you have double coverage.

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 or Part A. If you or your spouse worked for at least 10 years in Medicare-covered employment, you

should be able to qualify for premium-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 monthly Social Security check or your

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 shows how we coordinate benefits with Medicare, depending on the type of
Medicare managed care plan you have.

The Original Medicare Plan The Original Medicare Plan (Original Medicare) is (Part A or Part B) available everywhere in the United States. It is the way
everyone used to get Medicare benefits and is 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 45
45 Page 46 47
2002 Physicians Health Services of New York, Inc. 46 Section 9
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.
Your care must continue to be authorized by your Plan PCP, or
precertified as required.

We will not waive any of our copayments.
(Primary payer chart begins on next page.) 46
46 Page 47 48
2002 Physicians Health Services of New York, Inc. 47 Section 9
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… A. When either you --or your covered spouse --are age 65 or over and …

Original Medicare This Plan
1) Areanactiveemployee withtheFederalgovernment (includingwhenyouor afamilymemberare eligibleforMedicaresolely becauseofadisability),

2) Are an annuitant,
3) Are a reemployed annuitant with the Federal government when…
a) The position is excluded from FEHB, or

b) 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
services)


(for other services)

6) Are a former Federal employee receiving Workers' Compensation and the Office of Workers' Compensation Programs has determined
that you are unable to return to duty,

(except for claims
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, and
a) 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 47
47 Page 48 49

2002 Physicians Health Services of New York, Inc. 48 Section 9
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 most cases, your claims will be coordinated
automatically and we will pay the balance of covered charges. You will not need to do anything. To find out if you need to do something

about filing your claims, call us at (877) 747-9585 or visit our website
at www. health. net

In this case we do not waive any out-of-pocket costs.

Medicare managed care plan If you are eligible for Medicare, you may choose to enroll in and get your 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 our Medicare managed care plan: You may enroll in
our Medicare managed care plan and also remain enrolled in our FEHB plan. In this case, we do not waive any of our copayments or

coinsurance for your FEHB coverage.
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), but we will not waive any of our copayments or coinsurance. If you

enroll in a Medicare managed care plan, tell us. We will need to now
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 to enroll in 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 in If you do not have one or both Parts of Medicare, you can still be covered Medicare Part A or Part B under the FEHB Program. We will not require you to enroll in Medicare 48
48 Page 49 50
2002 Physicians Health Services of New York, Inc. 49 Section 9
Part 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, we pay first. See your TRICARE Health Benefits Advisor if you have questions about
TRICARE coverage.

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 agencies We do not cover services and supplies when a local, State,
are responsible for your care or Federal Government agency directly or indirectly pays for them.

When others are responsible When you receive money to compensate you for medical or hospital care
for injuries for injuries or illness that another person caused, you must reimburse us for whatever services we paid for. 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. 49
49 Page 50 51
2002 Physicians Health Services of New York, Inc. 50 Section 10
Section 10. Definitions of terms we use in this brochure
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.

Copayment A copayment is a fixed amount of money you pay when you receive covered services. See page 12.

Covered services Care we provide benefits for, as described in this brochure.
Custodial care Any service or supply that can be furnished by someone who has no professional health care training or skills to a member:
(a) whose functional capacity has been reduced so significantly that he or she is not able to function outside a protected, monitored or
controlled environment (whether in an institution or in the home)
and; (b) who is not under active and specific treatment that will increase the

Member's functional capacity to the extent necessary to enable the
member to function outside the protected, monitored or controlled environment.

A custodial care determination is not precluded by the fact that a Member
is under the care of a supervising or attending physician and that the services are being ordered and prescribed to support and generally

maintain the member's comfort or ensure the manageability of the
member. Further, a custodial care determination is not precluded because the ordered and prescribed services and supplies are being

provided or supervised by a registered nurse, a physician assistant or
physical therapist.

Experimental or
investigational services
Experimental or investigational services are those services or supplies which include, but are not limited to, any diagnosis, treatment, procedure,

facility, equipment, drugs, drug usage, devices or supplies which are
determined, in the sole discretion of Physicians Health Services of New York, Inc. to be Experimental or Investigational. Services are considered

to be Experimental or Investigational if any of the following applies:
The service or supply has not been formally approved by, or cannot be lawfully marketed without the approval of the appropriate

government regulatory body or agency, including, but not limited to
the U. S. Food and Drug Administration, and, at the time it is furnished, such approval has not been given; or

The written informed consent form to be used by the treating facility or by other facilities in studying substantially the same service or
supply, refers to such service or supply as Experimental or Investigational, or as a research project, a study, an investigation, a
test, a trial, or words of similar effect; or
The written informed consent form and/ or the written protocols to be utilized by the treating facility for specific services or supplies has

not been reviewed and/ or has not been approved by the treating facility's Institutional Review Board, or other body serving a similar
function, or if federal law requires such review and approval; or The informed consent documents and/ or the written protocols and/ or
published reports or peer review articles in authoritative medical and scientific literature show that the service or supply is the subject of a
protocol( s) or study, including Phase I, II, or III clinical trial study, 50
50 Page 51 52
2002 Physicians Health Services of New York, Inc. 51 Section 10
or is otherwise under study to determine any of the following: its maximum tolerated toxicity, its safety, its efficacy, or its overall
benefits and risks as compared with a standard means of treatment or diagnosis.

In determining whether services or supplies are Experimental or Investigational, Physicians Health Services of New York, Inc. will
evaluate the services with regard to the particular Illness or disease
involved, and will consider factors which Physicians Health Services of New York, Inc. determines to be most relevant under the circumstances,

such as: published reports and articles in the authoritative medical,
scientific, and peer review literature; or written protocol( s) used by the treating facility or being used by another facility studying substantially

the same drug, device, medical treatment or procedure.

Medical necessity Health care services or supplies for prevention, diagnosis, or treatment which are not excluded or limited by this Certificate of Coverage and
which are: a. appropriate for, and consistent with, the symptoms and proper
diagnosis or treatment of the Member's Illness, injury, disease, or
condition; and b. provided for the diagnosis or the direct care and treatment of the

Member's Illness, injury, disease, or condition; and
c. not primarily for the convenience, appearance, or recreation of the Member, the Member's practitioner or another; and

d. within the standards of good medical practice within the organized
medical community; and e. neither Experimental or Investigational; and

f. the most appropriate supply or Level of Care which can safely be
provided. For Hospital stays this means the acute care as an Inpatient is necessary due to the type of Covered Services a Member

is receiving or the severity of the Member's condition and adequate
care cannot be received as an outpatient or in a less intensive medical setting.

Not all Medically Necessary services or supplies are covered.

Us/ We Us and we refer to Physicians Health Services of New York, Inc.
You You refers to the enrollee and each covered family member. 51
51 Page 52 53

2002 Physicians Health Services of New York, Inc. 52 Section 11
Section 11. FEHB facts
No pre-existing condition
We will not refuse to cover the treatment of a condition that you had limitation before you enrolled in this Plan solely because you had the condition before you enrolled.

Where you can get information See www. opm. gov/ insure. Also, your employing or retirement office about enrolling in the can answer your questions, and give you a Guide to Federal Employees
FEHB Program Health 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 for you and your family you, your 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 Plan premiums start during Open Season, your coverage begins on the first day of your first pay period that starts on or
after January 1. Annuitants' 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. 52
52 Page 53 54

2002 Physicians Health Services of New York, Inc. 53 Section 11
Your medical and claims We will keep your medical and claims information confidential. Only records are confidential the 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 coverage ends
You will receive an additional 31 days of coverage, for no additional 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 continuation of coverage (TCC) If you leave Federal service, or if you lose coverage because you no longer qualify as a
family member, you may be eligible for Temporary Continuation 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.

Converting to You may convert to a non-FEHB individual policy if:
individual coverage 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 53
53 Page 54 55

2002 Physicians Health Services of New York, Inc. 54 Section 11
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 (HIPAA)
Group Health Plan Coverage is a Federal 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 HIPAA" frequently asked

questions. These highlight HIPAA rules, such as the requirement that Federal employees must exhaust any TCC eligibility as one condition for guaranteed access to individual
health coverage under HIPAA, and have information about Federal and State agencies you can contact for more information. 54
54 Page 55 56

2002 Physicians Health Services of New York, Inc. 55 Long Term Care Insurance
Long Term Care Insurance Is Coming Later in 2002!
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:

It's insurance to help pay for long term care services you may need if you 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.

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.

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.

Not FEHB. Look at the "Not covered" blocks in sections 5( a) and 5( c) of your FEHB brochure. Health plans don't cover custodial care or a stay in 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.

Employees will get more information from their agencies during the LTC open enrollment period in the late summer/ early fall of 2002.
Retirees will receive information at home.
Our toll-free teleservice center will begin in mid-2002. In the meantime, you can learn more about the program on our web site at www. opm. gov/ insure/ ltc.

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.

What is long term care
(LTC) insurance?

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

Is long term care expensive?
But won't my FEHB plan,
Medicare or Medicaid cover
my long term care?

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

How can I find out more
about the program
NOW?
55
55 Page 56 57
2002 Physicians Health Services of New York, Inc. 56 Index
Index
Do not rely on this page; it is for your convenience and may not show all pages where the terms appear.

Accidental injury 30
Allergy tests 17 Alternative treatment 21

Allogeneic (donor) bone marrow transplant 25
Ambulance 29 Anesthesia 26
Autologous bone marrow transplant 25
Blood and blood plasma 28 Breast cancer screening 15
Casts 28 Changes for 2002 8
Chemotherapy 17 Childbirth 16
Chiropractic 21 Cholesterol tests 15
Claims 42 Coinsurance 12
Colorectal cancer screening 15 Congenital anomalies 23
Contraceptive devices and drugs 36 Coordination of benefits 45
Covered services 12 Deductible 12
Definitions 50 Dental care 39
Diagnostic services 14 Disputed claims review 43
Donor expenses (transplants ) 25 Dressings 28
Durable medical equipment (DME) 20
Educational classes and programs 22
Effective date of enrollment 50 Emergency 30

Experimental or investigational 50 Eyeglasses 19
Family planning 16
Fecal occult blood test 15

General Exclusions 41
Hearing services 18 Home health services 21

Hospice care 29 Home nursing care 21
Hospital 11 Immunizations 15
Infertility 16 Inpatient Hospital Benefits 27
Insulin 36 Laboratory and pathological
services 14 Magnetic Resonance Imagings
(MRIs) 14 Mail Order Prescription Drugs 34
Mammograms 15 Maternity Benefits 16
Medicaid 49 Medically necessary 51
Medicare 45 Mental Conditions/ Substance
Abuse Benefits 32 Newborn care 16
Non-FEHB Benefits 40 Nurse
Licensed Practical Nurse 21 Nurse Anesthetist 28
Registered Nurse 21 Nursery charges 16
Obstetrical care 16
Occupational therapy 18 Office visits 14

Oral and maxillofacial surgery 24 Orthopedic devices 20
Out-of-pocket expenses 12 Outpatient facility care 28
Oxygen 17 Pap test 15
Physical examination 15 Physical therapy 18

Plan facilities 9 Plan provider 9
Preventive care, adult 15 Preventive care, children 15
Prescription drugs 34 Preventive services 15
Primary care 10 Prior approval 11
Prostate cancer screening 15 Prosthetic devices 20
Psychologist 32 Radiation therapy 17
Room and board 27 Second surgical opinion 14
Skilled nursing facility care 28 Specialty care 10
Speech therapy 18 Splints 28
Sterilization procedures 16 Subrogation 49
Substance abuse 32 Surgery 23
Anesthesia 26 Oral 24
Outpatient 23 Reconstructive 24
Syringes 36 Temporary continuation of
coverage 53 Transplants 25
Treatment therapies 17 Vision services 19
Well child care 15
Wheelchairs 20 Workers' compensation 49

X-rays 14 56
56 Page 57 58
2002 Health N et of New York, Inc. 57
NOTES: 57
57 Page 58 59
2002 Physicians Health Services of New York, Inc. 58 Summary
Summary of benefits for Physicians Health Services of New York, Inc. -2002
Do not rely on this chart alone. All benefits are provided in full unless indicated and are subject to the
definitions, 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:
Diagnostic and treatment services provided in the office.................... Office visit copay: $10 14

Services provided by a hospital:
Inpatient.......................................................................................................

Outpatient....................................................................................................
Nothing
Nothing
27
28

Emergency benefits:
In-area.........................................................................................................

Out-of-area.................................................................................................

$10 per office visit; $25 per visit to urgent care center; $50 per visit
to hospital emergency room

$10 per office visit; $25 per visit to urgent care center; $50 per visit
to hospital emergency room

30
30
Mental health and substance abuse treatment.......................................... Regular cost sharing. 32
Prescription drugs .......................................................................................... $10 for generic formulary drugs;
$20 for preferred brand name drugs; $35 for all other drugs
34

Dental Care-(as described in section 5( h))............................................ Nothing 39
Vision Care .................................................................................................. $10 per visit 19
Special features: Personal Health Advisor Interactive Provider Directory
Disease State Management Programs
38

Protection against catastrophic costs (your out-of-pocket maximum)................................................................ Nothing after $1,500/ Self Only or $3,000/ Family enrollment per year
Some costs do not count toward this protection
12 58
58 Page 59
2002 Physicians Health Services of New York, Inc. 59
2002 Rate Information for Physicians Health Services of New York, Inc.
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. Refer to the applicable FEHB Guide.

Type of
Enrollment Code

Non-Postal Premium
Biweekly Monthly
Gov't Your Gov't Your Share Share Share Share

Postal Premium
Biweekly

USPS Your
Share Share
Dutchess. Orange, Putnam, Rockland and Westchester Counties, the five boroughs of New York City, Nassau and Suffolk Counties, New York

High Option Self Only
High Option Self & Family
PD1

PD2
$97.86 $71.02 $212.03 $153.88
$223.41 $213.13 $484.06 $461.78
$115.52 $53.36
$263.75 $172.79
59

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