PUBLIC EMPLOYEES BENEFIT TRUST (PEBT) BENEFITS REPORT
VOLUME 2, ISSUE 2

UNDERSTANDING THE NEW "HIPAA" LAWS AND HOW THEY WILL AFFECT YOU

New federal regulations dealing with the privacy of health care information went into effect April 14, 2003.

These regulations were issued by the Department of Health and Human Services (DHHS) and they are called the Health Insurance Portability and Accountability Act of 1996, or, the HIPAA Privacy Rules.

The laws apply to health care providers, like your doctor, and to medical plans and those people who work for and with those plans, like PacFed. Their purpose is simple: to keep you health information confidential.

For example, your health plan or PacFed can only discuss your Protected Health Information (PHI) with you, your spouse or with your adult child (provided they are assisting you in health care treatment or payment.)

The Health Plan or PacFed can no longer discuss your PHI with other people, such as your Union Rep, your employer's Human Resources representative or even a friend or neighbor without your written authorization.

If you require information about a specific medical, prescription, dental or vision claim, things will be a little different now.

In order for you to receive help with health claims from your Union rep, friend or anyone else, you must name that specific person on a special Authorization Form.

You can get that form from your Union Representative, your company's Human Resources Department or from PacFed by calling 1-800-753-0222.

Most of the changes required by HIPAA won't even be apparent to you. For example, PacFed and your Health Plan have taken steps to assure that your health information is stored in secure locations and cannot be accidentally disclosed or transmitted.

New electronic standards have been established for how information is exchanged. In addition, PacFed and your Health Plan have signed contracts with each other assuring that your health information is kept confidential.

These new regulations, mandated by federal law, will make things different, but after a brief period of time, everyone will adjust to the changes and new rules. Remember, they are in effect for your benefit.

For assistance on these or other matters, please contact PacFed Member Services.

Bilingual representatives are standing by to make this transition as smooth as possible for you.

SUMMARY ANNUAL REPORT FOR PUBLIC EMPLOYEES BENEFIT TRUST

This is a summary of the annual report of the Public Employees Benefit Trust, E.I.N. 95-4845974, Plan No. 501, for the year ended August 31, 2002. The annual report has been filed with the Pension and Welfare Benefits Administration, Retirement Income Security Act of 1974 (ERISA).

Insurance Information

The value of plan assets, after subtracting liabilities of the plan, was $30, 719 as of August 31, 2002, compared to $9,767 as of September 1, 2001. During the plan year the plan experienced an increase in its net assets of $20,952. During the plan year the plan had total income of $1,732,646 including employer contributions of $1,724,557 and participant contributions of $8,089.

Plan expenses were $1,711,694. These expenses including $203,046 in administrative expenses and $1,508.648 in benefits paid to or for participants and beneficiaries.

Your Rights To Additional Information

You have the right to receive a copy of the full annual report, or any part thereof, on request. The following items are included in that report:

1. An independent auditors' report;
2. Financial information and information on payments to service providers; and
3. Insurance information, including sales commissions paid by insurance carriers.

You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover coping costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge.

You also have the legally protected right to examine the annual report at the main office of the plan (1000 North Central Avenue, Suite 400, Glendale, CA, 91202-9905) and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department shouldbe addressed to: Public Disclosure Room, Room N1513, Pension and Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.