A review of the system reflects a backlog of employer and employee under/over payments of premium contributions resulting mainly from:

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1 State Employees Group Insurance Program Benefits Underpayment/Overpayment Report Cleanup Fiscal Year March 26, 2010 I. Overview of the Project Florida Statute provides authority to the Department of Management Services Division of State Group Insurance to collect premium contributions corresponding to the benefit programs offered to state and university employees, their dependents, and retirees. We are reaching out to you, our partner agencies, to collaborate in cleaning premium receivables by updating records in the People First system and paying underpaid premium contributions. The full payment of premium contributions from employers is critical to the sustainability of the insurance programs. A review of the system reflects a backlog of employer and employee under/over payments of premium contributions resulting mainly from: Changes in employee status not input in the People First system by the agency Under/over paid premium contributions owed by or to the agencies This coordinated cleanup project is targeting Fiscal Year under and over payment discrepancies. We have developed a process to help you identity and resolve discrepancies, to process the payment of owed premium contributions to the applicable insurance trust fund, and to keep your records current and updated. We have provided your agency with a password protected CD containing an Excel workbook with the under and overpayments premium contributions for the coverage period of July 2009 through February Corrective actions necessary to correct premium payment discrepancies are due to People First by April 30, Additional reports will be provided to your agency during the upcoming monthly HRM Personnel Officers meetings through June Fiscal Year under and over payments must be corrected by June 30, II. Instructions Each agency will receive an Under/Over Payment Report in Excel format during the fourth week of March. Each agency is expected to finalize the cleaning process of this period (July 2009 February 2010) by April 30, We encourage completing this project and submitting packages as soon as possible prior to the deadline. Actions and documents resulting from this project are to be bundled and sent to People First as indicated below. a. Review each detail item to determine if the variance shown on the report is due to: 1. A valid under or over payment. 2. An enrollment or employment status issue. b. Perform actions necessary to resolve payment discrepancies including: 1. Complete an Agency Error Letter and include the appropriate documentation for incorrect enrollments processed by the agency HR office. 2. Complete a Correction Form for incorrect enrollments processed by the service center. 3. Remit employee underpayments, along with a completed Payment Coupon, to the lockbox, to correct employee underpayments. 4. Complete Refund Request for all valid overpayments, along with the back-up documentation. 5. Remit payments to correct employer underpayments directly to DSGI using routine Journal Transfer (JT) processes. Do not combine underpayments for the period July 2009 February 2010 with current employer premium payments; submit separate JTs and corresponding supporting documentation. Page 1 of 2

2 State Employees Group Insurance Program Benefits Underpayment/Overpayment Report Cleanup Fiscal Year March 26, 2010 c. Compile project cleanup packets and supporting documentation including: 1. Revised under and over payment Excel workbook report, updated with Actions/Dates/Comments for each detail line item included on the report; select the corresponding action from the drop down menu provided on the Excel report. 2. Completed action forms. 3. Completed Refund Request forms. d. Submit bundled project cleanup packets and supporting documentation by April 30, 2010 to: People First Service Center Attn: Under/Over Project Post Office Box 6830 Tallahassee, FL e. Develop internal process for maintaining current status for Under and Over Payment Reporting process. Have a question or need assistance? Send an to PFclientservices@convergys.com with under/over cleanup as the subject. III. Report Definitions FIELD NAME FIELD DESCRIPTION FIELD NAME FIELD DESCRIPTION EE Number People First ID ER Paid Employer payment total per plan per period EE Name Participant Name ER Exp Employer expected premium amount Agency 4 digit code identifying agency ER Var Employer under or over payment amount Plan Insurance plan code and name Action Drop down selection of action taken to resolve payment discrepancy EE Paid Employee payment total per plan per period JT Payment Date Date of JT Payment corresponding to cleanup EE Exp Employee expected premium amount Comments Explanation when Other or No Action Taken selected in ACTION Field EE Var Employee under or over payment amount Important Note: These reports contain protected health information access to the reports should be limited to employees with clearance for confidential data on a need to know basis. IV. Attached Documents Page 2 of 2 Agency Error Letter Management Advisory -- Provides instructions for drafting agency error letters. Correction Form -- Used to identify service center errors and the correction requested. Journal Transfer Remittance Detail -- Excel spreadsheet used to provide distribution details for a journal transfer. Employee payment coupon -- Manual payment coupon used to provide distribution detail for employee payments. V. Future Cleaning Process Requirements Starting with coverage month July 2010 and beyond, agencies must implement an ongoing review and correction process using the online reporting system to create Under and Over Payment Reports following each payroll. Actions necessary to resolve payment discrepancies will be due to People First before the next payroll is run each period. Agencies that fail to adhere to the timely review and correction of discrepancies may encounter cancellation of benefits of employees with outstanding premium payment balances.

3 MANAGEMENT ADVISORY # DATE: May 4, 2009 TO: FROM: SUBJECT: Agency and University Personnel Officers and Benefit Coordinators Suzetta Furlong, Manager Agency Error Correction Requests Our experience over the last year has shown that we need to clarify the process for agency error correction requests. The process has not changed, but clarification has been added regarding documentation. Providing appropriate documentation will keep everyone protected throughout the process. With the many demands on HR offices, we understand that occasional mistakes are made in processing enrollment changes for employees. The purpose of this advisory is to clarify the process for documenting and subsequently reviewing agency error correction requests. First, we offer these self-service recommendations for you to consider to reduce the need for correction requests: The Benefits Guide and the Web site, myflorida.com/mybenefits, provide a wealth of information for employees. We encourage employees to use these resources to research their benefit options. If they find they have questions, the service center is available to help. The service center follows a process for documentation that can be retrieved if an employee disputes an issue. Following this avenue for information provides protection for employees. Employees can enroll in benefits and make many qualifying event elections online in the People First system (some elections, such as death and divorce, require a call to the service center). When employees make their own elections, they take ownership for their decisions and system selections. They ll also be familiar with the system for open enrollment. Per the Florida Statutes (Chapter ), Florida Administrative Code (60-P), and plan documents, participants in the State Group Insurance Program always have the option to file a level one appeal if they feel an error has been made. This is the best route for participants to take because it protects their rights through the appeal process, including the right to an administrative hearing. We serve those who serve Florida.

4 Process for Documenting Errors: Chapter of the Florida Statutes states that erroneous written information that is detrimental to the employee may be considered to provide a remedy for the employee. Additionally, Plan rules and IRS tax laws must be followed. With these criteria in mind, we are directing People First to consider the following when responding to an agency error correction request: 1. The correction request must be on letterhead stationery from the agency and be signed by the personnel officer or designee. 2. The request should describe in detail the nature of the error: how it occurred, any appropriate steps already taken by the agency to resolve the issue, and the action requested of People First. 3. Appropriate supporting documentation is critical for our audit trail. Documentation copies of s, date stamped forms, meeting logs, etc. should be provided with the letter. Correction requests that do not include this type of documentation will not be considered, per the Statute. 4. Fax the request and supporting documentation to (904) , with the cover sheet marked Agency Error, or mail it to: People First Service Center Post Office Box 6830 Tallahassee, FL People First will review the information provided: a. The correction will be made if: The documentation supports the request, and Plan rules are followed, and There are no IRS tax implications, and The request is consistent with state and federal requirements b. The request will be denied if: There is insufficient documentation, or Plan rules would be compromised, or There are tax implications, or The request is not consistent with state and federal requirements If the request is denied, the employee may begin the appeal process. 6. People First will provide a written response to the correction request as quickly as possible, given research may be needed. Ultimately, we all want to do what is best for our employees. Promoting the self-service recommendations above is step one. When that is not possible and an error is made, providing ample documentation will ensure that employees are treated fairly and that we are able to act upon the agency error correction request. We serve those who serve Florida.

5 CORRECTION FORM UNDER/OVER CLEANUP PROCESS Correction Form Process: Step 1: Complete the form below and include a brief description of the issue and requested resolution. Step 2: Sign and date the form. Step 3: Submit this form for processing at the completion of the under/over cleanup process. Employee Name: Employee ID: Functional Area: [ ] Benefits [ ] Org. Management Sender Name: Phone Number: Address: Agency Name: Description of Issue: AGENCY CERTIFICATION: I certify the information on this request is true and accurate. Agency Signature: Date: 3/26/2010 Rev.

6 STATE OF FLORIDA EMPLOYEES' GROUP INSURANCE PLAN JOURNAL VOUCHER PREMIUM DETAIL HEALTH LIFE DISABILITY SAMAS SALARY ACCOUNT CODE SOC SEC NO PF ID # LAST NAME FI MI COV-MO/YR PREMIUM AMT HSA AMOUNT TOTAL PREMIUM DUE $0.00 Agency Signature TOTAL DEPOSIT DUE $0.00 Telephone number TOTAL AMOUNT DUE $ - Revised 1/1/06

7 Manual Payment Coupon-Under/Over Cleanup Employee ID Plan Code Coverage Period Amount Detach here and return with Premium Payment Manual Payment Coupon-Under/Over Cleanup Employee ID Plan Code Coverage Period Amount Detach here and return with Premium Payment Manual Payment Coupon-Under/Over Cleanup Employee ID Plan Code Coverage Period Amount