The UTU has been advised that, effective January 1, 1999, the contractual arrangement between Health First and United HealthCare (UHC) will be terminated, resulting in the disruption of the Managed Medical Care Plan benefit to approximately 330 railroad members covered under The Railroad Employees' National Health and Welfare Plan.

Health First is a large, independent practice association in Colorado representing 51 physicians. The physicians are employees of Health First, not individual practitioners, which has prevented UHC from contracting with the physicians individually in order to maintain their participation in the network. Health First reached its decision not to renew its contract with UHC despite UHC's offer to increase the reimbursement rate for primary care physicians by 10%.

Even with the decision of Health First to discontinue participation, there are still 1,569 primary care physicians in the network. Those members who are affected by this action will be receiving letters from UHC with their re-enrollment packages, which are due out shortly, identifying those providers within their geographic area willing to accept new members.