Important notice to medicare recipients

Important Notice to Medicare Recipients

UnitedHealth Group recently announced that it will be withdrawing as a contractor for administration of the Medicare Part A, Part B and Durable Medical Equipment programs.

This means that United HealthCare will no longer serve as the Medicare Part B administrator for railroad retirees and their dependents.

The Federal Health Care Financing Administration and the Railroad Retirement Board will negotiate agreements with new contractors to administer these programs and the UTU will work to ensure a smooth transition to all affected beneficiaries.

Following is printed the press release from Uniprise, a UnitedHealth Group company, and related questions and answers provided by Uniprise:

Uniprise Announces Exit from Medicare Contract Administration Business

Hartford, Conn., Feb. 10, 2000 - Uniprise, a UnitedHealth Group company, today announced that it has notified the Federal Health Care Financing Administration (HCFA) that it will be withdrawing as a contractor for administration of the Medicare Part A, Part B and Durable Medical Equipment (DMERC) programs. Uniprise also announced that it has informed the Railroad Retirement Board (RRB) that it will also be withdrawing as the administrator of its Medicare Part B contract.

Uniprise currently processes Part A claims in three states: Connecticut, Michigan and New York, Park B claims in four states: Connecticut, Minnesota, Mississippi and Virginia, and Durable Medical Equipment claims for 10 northeastern states. Uniprise also has a contract with the Railroad Retirement Board to provide administration to railroad retirees nationally.

HCFA and RRB will negotiate agreements with other contractors to administer the programs in the jurisdictions currently served by Uniprise. Once new contractors are selected, HCFA, RRB, Uniprise and the new contractors will work together to ensure a smooth transition for providers and beneficiaries.

"We have been a successful Medicare and RRB contractor for many years and this is not an easily arrived-at decision," said Bill Bannon, Uniprise's vice president of government operations. "We recognized, however, that this business was no longer consistent with our overall strategic direction and we would be better served to focus on our core business."

Uniprise government operations currently employs approximately 1,300 people in 10 locations.

Railroad Medicare Customer (Beneficiaries and Providers) Questions and Answers

Q1. Who will be the new contractor and when will they take over?

A1. This has not yet been determined. The Railroad Retirement Board will select the new contractor and the date the transition will occur. We expect that these decisions will be made within the next few months. Railroad beneficiaries and providers will be notified when these decisions are made.

Q2. What will happen to my Medicare benefits?

A2. Your Medicare benefits will not be affected. Your claims will be processed and paid by the new contractor according to the same coverage and reimbursement rules that we have been following.

Q3. Will the new contractor have my Medicare records?

Q3. Yes. We will transfer all our Medicare beneficiary and provider files to the new company at the time of transition.

Q4. Will I need to do anything special because of the change in contractors?

A4. No. We will be working closely with the Railroad Retirement Board and the new contractor to assure the transition goes smoothly and with no impact on Medicare beneficiaries or providers.

Q5. What if I have more questions concerning this change?

A5. Your questions should be directed to our customer service area. They
will be able to research your specific issues and provide a response. The
toll-free telephone number is (800) 833-4455.