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State Classified staff medical plan insurance supplement

August 2, 2010

Eligible State Classified staff may apply for the medical insurance supplement during the application period. Applications must be completed on-line via the State's Employee Benefits website.

Dear State Classified Staff,

Governor Ritter signed House Bill 07-1335, a bill passed by the Colorado Legislature in 2007 designed to address the cost of medical insurance for low-income families eligible for State of Colorado employee medical plans. The funding for this medical insurance supplement comes from the State’s share of the settlement from the federal tobacco lawsuit award.

The intent of this bill is to provide a supplement for qualified low-income State Classified employees with children, in part because State employees are not eligible to enroll in Colorado’s Child Health Plan Plus (CHP+) program, which is Colorado’s version of the federal program to help insure the children of low-income families.

The implementation of this program began in the FY09 Plan Year and is anticipated to continue for FY11 (July 1, 2010 – June 30, 2011). Employees’ who meet the minimum eligibility requirements may begin the application process Aug. 3, 2010, and ensure the on-line application is submitted no later than the Aug. 12, 2010 deadline.

The State does not mail the July 2010 edition of Health Line to employee’s homes outlining the medical supplement. Instead, the State of Colorado requests employees to visit their website to see detailed information about this program and application process. You may locate this information on the State of Colorado’s website at

Application period (Aug. 3 – 12, 2010)

Eligible State Classified Staff may apply for the supplement during the application period. Applications must be completed on-line via the State’s Employee Benefits website by locating the “Medical Insurance Supplement Program” at All on-line applications must be submitted electronically no later than August 12, 2010.

The on-line application will require basic demographic information (names and birthdates) related to the employee, family members, household members, 2009 household income (2009 tax return) for all adults and current medical insurance information. Please make sure you have the necessary information to complete the application process.

Submission of a hard copy of this documentation is not required to complete the on-line application, but prior to award supplements, employees will be required to provide household income verification. This includes documentation for all adults living in the same household who filed a 2009 federal tax return as well as documentation (birth certificates) showing eligibility for dependent children.

Eligibility qualifications

There are many qualifications required to meet eligibility for the medical supplement and not all employees will receive a distribution from this program. The provisions of House Bill 07-1335 require that the money be awarded based upon demonstrated need within the parameters defined.

It is estimated that the settlement will pay for a “portion” of the premiums for the employees with the greatest financial need and will not cover the entire premium cost. The minimum qualifications necessary to submit an application include:

• Hired “prior” to July 1, 2010
• Eligible for State of Colorado Classified Staff medical plans
• Have a dependent child eligible for State medical coverage
• 2009 calendar year “household” income of 300% or less defined by the 2009 Federal Poverty Level defined at
        Tier 1 – household income at or under 200% of the Federal Poverty Level
        Tier 2 – household income at or between 201% and 250% of the Federal Poverty Level
        Tier 3 – household income at or between 251% and 300% of the Federal Poverty Level
• Filed a 2009 federal income tax return
• Employee and dependent children must be enrolled in, or willing to enroll in, a State medical insurance option for FY11
Enrolled employees – may not change medical plans if a supplement is awarded, but may add dependent children to the existing medical coverage.
Employees who are “not” enrolled – may still apply if the eligibility requirements for application submission are met. If approved, employees will receive an opportunity to enroll in State medical coverage and at that time if the supplement is not enough to make the coverage “affordable” for the employee, enrollment is not required.

Note: Senate Bill 09-269, passed by the Colorado’s legislature in 2009, authorized a portion of the tobacco settlement funds previously available to supplement this program to be reallocated to the State’s General Fund. Tier 1 applicants, which are the highest poverty level, would receive available funds prior to distribution to Tier 2 and Tier 3 applicants. The amounts of the supplements will be determined by the total number of qualified applicants, available funds, and the cost of the insurance plans chosen by applicants.

Medical supplement allocation time frame

It is important to understand that the amount of supplement, if any, as determined by the State legislature, cannot be determined at the time of application. The allocation of supplement funds will be determined in August/September 2010 and eligible State Classified Staff will be notified by the State of Colorado’s Benefits Unit at that time with instructions on documentation submission to validate the application information. The first supplement is not expected to be awarded until October/November 2010.

Enrollment assistance

The CSU Benefits staff is available to assist you with the on-line application during normal business hours. In addition, the staff of Facilities or Housing and Dining Services may attend a help session coordinated by each department. The available times to receive assistance are as follows:

“Any” State Classified Staff
 Aug. 3 – 12, 7:30 a.m. - 4:30 p.m.
Human Resource Services – Benefits Office, 555 S. Howes, Suite 210

“Facilities” State Classified Staff
 Aug. 4, Wednesday, 1:30 - 3:30 p.m.
Facilities Services Center North (Large Conference Room)

Housing and Dining Services” State Classified Staff
 Aug. 5, Thursday, 1:30 - 3:30 p.m.
Palmer Center – Second Floor Conference Room

Contact: Teri Suhr
Phone: (970) 491-6737