Subject:

Federal Employees Health Benefits (FEHB) Program: Termination of Provider Contracts for Keystone Health Plan East (KHPE), Code ED

We received notification from Keystone Health Plan East (KHPE), enrollment code (ED), that they will cancel their provider contracts in New Jersey effective July 1, 2003. The affected counties in New Jersey are as follows: Atlantic, Bergen, Essex, Cumberland, Cape May, Hudson, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Union.

As a result, effective July 1, 2003, KHPE members will no longer have access to providers in the above counties except for emergency care, and for services such as previously scheduled procedures, 2nd and 3rd trimester pregnancies, and other continuity of care situations.

We are advising you to alert employees so that they may choose another health plan. You may accept changes until January 10, 2003. The effective date of these changes should be the same as the open season changes, the first pay period on or after January 1, 2003.

Thank you for your cooperation in this matter.

Abby L. Block Assistant Director    for Insurance Programs

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