Dear Broker

Dear Broker,
The consolidation of Oxford and UnitedHealthcare was completed in July, and we recently announced some significant decisions that will begin the process of joining forces.
Small Group Migration

A key event was the decision to migrate the UnitedHealthcare small group business to the Oxford platform, beginning with UnitedHealthcare’s July 2005 renewals.

This means UnitedHealthcare small groups in New Jersey will not be able to renew their existing UnitedHealthcare products, since these products will be withdrawn from the market. In New York, small groups will not be able to renew into UnitedHealthcare HMO products. Small groups located in Oxford’s service area will not be able to renew into UnitedHealthcare insurance products (please see below). In Connecticut, existing UnitedHealthcare small groups are guaranteed renewable, but we will cease marketing the existing UnitedHealthcare small group plans to new groups in that state at a date to be announced.
HMO Market Withdrawal

As of June 30, 2005, UnitedHealthcare will withdraw all small group HMO products from the New York and New Jersey markets.

We have a legal obligation to notify HMO-based groups and Members of the withdrawal of their products at least 180 days before their renewal. Accordingly, the enclosed letters are being sent to all UnitedHealthcare small group HMO-based employer groups and Members in New York and New Jersey with renewal dates in July 2005. Each subsequent month, we will send letters to the groups and Members that are scheduled to renew in 180 days.
Insurance Product Option Withdrawal

As of June 30, 2005, UnitedHealthcare will significantly decrease the number of insurance-based product options in the New Jersey, New York, and Connecticut small group markets. In upstate New York, those New York counties where Oxford does not currently do business, the UnitedHealthcare small group insurance-based products will not change.

We are under a statutory obligation to inform UnitedHealthcare’s insurance-based groups and Members of the withdrawal of their existing products at least 90 days before their renewal, and we will commence sending those letters accordingly. While current UnitedHealthcare groups in Connecticut are allowed to renew their existing product, we will send renewal communications to them with comparable Oxford product options.
Voluntary Migration to Oxford

Closer to the renewal date, migrating groups will receive a notice that outlines the Oxford plan that most closely matches their current UnitedHealthcare plan and provides details on the largely seamless re-enrollment process. We hope that this process makes it easy for employers to successfully migrate to Oxford, a plan you can recommend with confidence.

In upstate New York, UnitedHealthcare HMO-based groups will have the option of selecting UnitedHealthcare insurance-based alternatives.
There is nothing you need to do today. There will be no changes in coverage prior to the migration of a group to the Oxford platform. All UnitedHealthcare benefits, network providers, and service contacts will remain the same until the next renewal has been completed. Groups with renewal dates prior to July 2005 may elect to renew with their UnitedHealthcare plan for another contract year.
Selling New Groups

New Jersey requires that we no longer sell our UnitedHealthcare small group HMO-based products and certain insurance product options as of January 1, 2005. Therefore, we will no longer quote UnitedHealthcare New Jersey small groups or accept applications after that date.

We have made a strong commitment to the brokerage community to communicate frequently and in detail. We are sending this notification to all Oxford and UnitedHealthcare brokers in the tri-state area, regardless of whether you have clients who are affected by this activity. In January, we will be conducting meetings to educate you on the details of the consolidation and what it means for your clients. If you have any questions today, please call Oxford Group Services.
Sincerely,

Kevin Hill

Executive Vice President, Sales & Business Development

Oxford Health Plans, a UnitedHealthcare Company

MS-04-1841