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<h1><img width="151" height="57" id="_x0000_i1025" src="cid:image001.png@01D8D8CC.65AE0120"><o:p></o:p></h1>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">October 5, 2022<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<span style="font-family:"Arial",sans-serif">To:<o:p></o:p></span></p>
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<span style="font-family:"Arial",sans-serif">Department Benefits Representatives (DBRs)<o:p></o:p></span></p>
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<span style="font-family:"Arial",sans-serif">From:<o:p></o:p></span></p>
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<span style="font-family:"Arial",sans-serif">HR Benefits Office on behalf of UC Office of the President<o:p></o:p></span></p>
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<span style="font-family:"Arial",sans-serif">Re:<o:p></o:p></span></p>
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<b><span style="font-family:"Arial",sans-serif">Optum U S Behavioral Health Insurance Premium Rebate Letter </span></b><span style="font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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<p class="xmsonormal" style="text-autospace:none"><b><span style="font-size:12.0pt;font-family:"Arial",sans-serif"> </span></b><span style="font-size:12.0pt;font-family:"Arial",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:9.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Arial",sans-serif;color:black">Optum Behavioral Health issued the attached ‘U.S. Behavioral Health Plan, California 2021 Health Insurance Premium Rebate’ letter to 2021 non-Medicare
plan subscribers of Kaiser Permanente HMO. These subscribers will receive this letter because they had Optum Behavioral Health (Group 11280) benefits coverage in 2021.
<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Arial",sans-serif;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif;color:black">The attached standalone FAQ is also posted on UCnet and has been updated for the 2021 rebate.</span><span style="font-size:9.0pt"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Arial",sans-serif;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Arial",sans-serif;color:black">The details of the rebate and membership are as follows:<o:p></o:p></span></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoNormal" style="color:black;mso-list:l0 level1 lfo1;text-autospace:none">
<span style="font-family:"Arial",sans-serif">45,480 subscribers<o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-list:l0 level1 lfo1;text-autospace:none">
<span style="font-family:"Arial",sans-serif;color:windowtext">$</span><span style="font-family:"Arial",sans-serif">876,638.84</span><span style="font-size:9.0pt;font-family:"Arial",sans-serif">
</span><span style="font-family:"Arial",sans-serif">total rebate amount<o:p></o:p></span></li></ul>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Arial",sans-serif;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Arial",sans-serif;color:black">The Affordable Care Act requires insurance companies to use a certain amount of premium dollars to provide services. If they don’t use that amount, the
excess must be reimbursed as a rebate to the employer, and plan members </span><span style="font-family:"Arial",sans-serif">must
<span style="color:black">be notified of the rebate. Please note that t</span>he Medical Loss Ratio is calculated across all Optum’s plans in a state and is not based solely on UC members’ utilization.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-family:"Arial",sans-serif">As communicated previously, UC decided to apply the member portion of the 2019 and 2020 Optum Behavioral Health MLR rebates toward lowering future premium contributions,</span></b><span style="font-family:"Arial",sans-serif">
<b>which resulted in reductions to the 2022 and 2023 Kaiser/Optum Behavioral Health overlay employee/retiree contributions, respectively.</b>
<b><i>To remain consistent in our approach, we will apply the member portion of the 2021 MLR rebate toward lowering future premium contributions as well.</i></b></span><b><o:p></o:p></b></p>
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