Common use of Mandatory Medicare Risk HMO Clause in Contracts

Mandatory Medicare Risk HMO. A mandatory Medicare risk HMO for retirees (currently those in the Health First coverage area of Greater New York). The program will provide full hospital medical, drug, eyeglasses and a limited dental benefit. The effective date is April 1, 2002. The program will allow for hardship exemption. It is estimated that in the first year, twenty five percent of the retirees in the coverage area will remain with their current coverage. The League and the Union will use their best efforts to add additional networks. It is the intention of 1199 and the LVHH to maintain and improve the NBF’s programs. These and other adjustments are needed to preserve the resources of the NBF to provide its comprehensive health coverage in the face of rising health care costs. The estimated savings from these three and other initiatives are approximately $20 million in fiscal year 2003; $24 million in fiscal year 2004; and $28 million in fiscal year 2005.