ANNUAL REPORT INSURANCE BRANCH BENEFITS AND SERVICES DIVISION OFFICE OF PERSONNEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00235A000100020011-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 12
• Document Creation Date: December 9, 2016
• Document Release Date: April 20, 1998
• Sequence Number: 11
• Publication Date: June 30, 1960
• Content Type: PERRPT

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ANNUAL REPORT
INSURANCE BRANCH
BENEFITS AND SERVICES DIVISION
OFFICE OF PERSONNEL
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Section I
Major Accomplishments and Significant Developments
1 July 1959 - 30 June 1960
Attached, as part of this report, is a summary of Insurance
activity during the reporting period, which shows to some degree
the increased workload that is presently developing and which, dur-
ing the ensuing year, will increase to the point where additional
manpower may be necessary.
It is very difficult, if well-nigh impossible, to accurately
picture the man-hours required in handling various functions in this
Branch, since each application, each claim, and even each informa-
tional telephone call is based on a different set of facts and is
therefore handled as a separate complete problem. Time spent on each
such case varies to a great extent, especially in the field of claims.
It becomes obvious that even if work measurement were possible, be-
cause of these variances, an accurate assessment of time spent in
processing applications and claims would be most difficult. As an
example, on an application for life insurance, it is not unknown
for as many as ten phone calls to be required to obtain such items
as additional money, medical information or to obtain true or
pseudonyms, as the case may be.
These facts are presented merely to help the recipients of
these reports obtain a complete picture of the complexity of the
Insurance operation, as opposed to the idea that because volume is
involved in production, work is strictly of the routine "production-
line" nature.
Insurance Program in General
During the past year certain GEHA programs have shown significant
growth, each of which is detailed in the following paragraphs.
The one showing the greatest increase in coverages extended is,
of course, the hospitalization and surgical plan, underwritten by
Mutual of Omaha, as a result of the enactment of the Federal Employees
Health Benefits Act of 1959. When finally implemented, such implementa-
tion to be described in the next report, it is expected that enrollments
will increase as much as 35% in number.
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Apparently as a result of the last "return of premiums" to all
UBLIC policyholders, enrollment in that program increased about 8%
with an increase in force of about $2,500,000.00. Every indication
presently points to a continued increase in this program.
The WAEPA life insurance program also enjoyed a steady increase
of about $250,000. Death claims under both life insurance programs
doubled in number, from six for a total, of $84.,000.00 to twelve for
a total of $150,000.00.
All of the other plans administered by GEHA (the Insurance Branch)
showed a steady increase in membership, except the.Emergency Travel
program which showed a slight decrease.
Due to the fact that the presently available Air Trip Coverage
does not provide for benefits necessitated as a result of riding as
a passenger on military aircraft, on a "one-shot" deal, a new contract
was consummated by the Board of Directors and the officers of GEHA
with Mutual of Omaha. This provides protection during a trip to be
completed, within 30 days. For trips which require more than 30 days
for completion, two applications are accepted, one for each one-way
trip.
Specific Major Accomplishments:
1. The second return of premiums to UBLIC policyholders
whose coverage was in force on 31 July 1959, was accomplished
without additional hel . This was completed before Christmas
25X9 with receiving cheeks in the amount of
$108, 1.03. Since two signatures on all GEHA checks are re-
quired, to expedite these payments, a new pre-signed check was
procured and used for the first time. There remains enough
of the original supply to complete the next return of premiums
project.
25X9
2. A project was begun, whereby all beneficiary
designations on WAE?A and UBLIC life insurance were checked
for currency by the Branch Chief. This was accomplished by
forwarding appropriate beneficiary forms to the insured for
completion and return by him. This involved approximately
3. The new "Association Insurance Programs" booklet,
dated 31 March 1960, was prepared by the Branch and distributed
to employees. This booklet is an up-to-date description of the
plans offered by GEHA. The Chapter on the Federal Employees
Health Benefits Act coverage will be added later. 25X1C
4+. In February 1960, arran2ementA ve7+IP ma.am f,,, +k-
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Specific Major Accomplishments (continued)
Details were worked out and coordinated by the Insurance rant
and the Office of Security.
5. Since the new hospitalization and surgical coverage
became effective 10 July 1960, the various forms associated
with the previous Mutual (GEBA) plan will no longer be of use.
Hence a screening of folders has been started by which all
such unnecessary material is removed from folders and boxed for
storage at the records center. This is a time-consuming project
since it involves upwards of 25X9A2
6. The Branch prepared the original draft of the Civil
Service booklet for use by them as a guide. Due to security
involvements, arrangements for printing and distribution by
our own facilities were made. A great deal of time was spent
by the Branch Chief in this project, in coordinating such print-
ing, proof-reading, distribution, etc. between printing services
here and the Civil Service Commission. Even with the transpor-
tation of the forms between the Civil Service Commission and
points within the Agency, security requirements presented quite
complicated problems. The stuffing of the envelopes was
C
accomplished with the excellent assistance of "pool" personnAl
7. After discussions with the Office of Security a fund
25X1 C
by the Branch Chief and Deputy Branch Chief.
8. As mentioned above, a new Military Air Trip program
was adopted in January 1960, providing for certain coverages
for personnel desiring one-way or round-trip protection while
a passenger on an aircraft operated by the Department of Defense.
This new plan was necessitated due to the fact that under the
Air Trip plan, such flights were specifically excluded. Infor-
mation on this newest plan was incorporated in the new Association
Insurance Programs booklet.
9. During the past year, lectures were given to all E.O.D.'s
by representatives of the Branch. In addition, the Branch Chief
lectured to individual groups, such as recruiters, personnel
officers of components, as well as to those attending the Person-
nel Officer Training Course. Briefings continue to be given to
groups and individuals departing from and returning to headquarters.
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25X9A2
25X9A2
Representatives of the Branch continue to staff the GEHA booth
in the Support Exhibit. A great deal of time was and will
continue to be spent, on the part of the Branch Chief, in dis-
cussions with individual members of the Emergency Task Force
on insurance matters, as well as with individual employees of
all grades on their own personal insurance problems.
10. The regular quarterly microfilming of the Insurance
Branch records for the Vital Documents file was completed in
August, December, and March.
11. An audit of the Insurance Branch records by a repre-
sentative of the Audit Staff, covering the year ending 31 Decem-
ber 1959 was completed in March 1960.
12. The period from September 1959 to June 30, 1960 saw
most of the planning for the operational phases of the new
health (FEBHA) plan completed. Numerous meetings were held
with representatives of Fiscal Payroll, Comptroller, Technical
Audit Staff, Machine Records, and Finance with regards the
financial implications involved. Representatives of the Branch
attended several..all-day briefings on processing procedures
conducted by Civil Service. Civil Service Commission brochures
of the plans available to Agency employees and the accompanying
registration forms were distributed to headquarters and the field.
Numerous indoctrinating talks were given by the Division Chief,
the Branch Chief, and other branch personnel on.the new program,
as well as a meeting for all Administrative Officers or their
representatives on May 24, 1960, at R. & S. Auditorium.
During the period of 1 June through 30 June, nearly -
Registration Forms were received in the Branch, and of these
nearly have been completely processed. Due to the limited
manpower a great deal of overtime was necessary between June 20
and June 30; about 262 hours overtime by Branch personnel, and
40 hours compensatory time by the Chief and Deputy Branch Chief.
This workload naturally caused a sizeable backlog in normal
workloads which will be reduced by additional overtime.
During this closing period of the fiscal year the obvious
questions and phone calls for information further resulted in
an indescribable consumption of time.
13. The Branch Chief, as Secretary-Treasurer of GEHA,
provided the Division Chief, and the Board. of Directors with
constant detailed statistical reports for use in deliberating
policies involving the insurance program. Minutes and reports
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of the regular Board meetings constitute further duties
required, together with the preparation of notices, ballots,
and other functions associated with the annual election of
G HA officers. Assistance in these duties is afforded by
the Deputy Branch Chief (Assistant Secretary), and the
Supervisor, Claims Unit (Assistant Treasurer), when required.
The following Section reflects a report of the operational
activities of this Branch for the reporting period.
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Section II
Summer of Insurance Activity
1 July 1959 - 30 June 1960
Type of Coverage
WAEPA
New Applications
Reinstatements
Cancellations
Policies in Force
Insurance in Force
Claims (1)
New Applications
Reinstatements
Cancellations
Policies in Force
Insurance in Force
Claims (2)
New Applications
Reinstatements
Cancellations
Policies in Force
Claims Paid
No. of Claims
Average per Claim
AIR FLIGHT
New Applications
Cancellations (3)
Policies in Force
Claims Paid
No. of Claims
90
2
6
$16,625,000.00
$ 30,000.00
$27,165,000.00
$ 120,000.00
25X9
25X9
$44,090,000.00
25X9
25X9
25X9
(1) Two Deaths (two at 15,000.00)
(2) Ten Deaths (one at 3,000.00, one at $6,000.00 one at $9,000.00
one at $12,000.00, and six at $15,000.00)
(3) All policies automatically cancel after being in force one year.
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Tyne of Coverage (continued.)
INCOME REPLACEMENT
New Applications
Cancellations
Policies in Force
No. of Claims
Claims Paid
Reinstatements
SPECIFIED DISEASES
New Applications
Reinstatements
Cancellations
Policies in Force
No. of Claims
Claims Paid
30
20
181
10
$ 2,485-01
0
A
697.76
New Applications
Reinstatements
Cancellations
Policies in Force
EMERGENCY TRAVEL
New Applications
Cancellations
Policies in Force
No. of Claims
9
Claims Paid
1,570.90
TEN-UP HOSPITALIZATION
New Applications
61
Reinstatements
1
Cancellations
26
Policies in Force
167
No. of Claims
28
Claims Paid
2,459.00
New Applications
25
Cancellations
11
Policies in Force
68
Insurance in Force
$34o,ooo.oo
25X9
A claim in the amount of 4 paid directly by Underwriter;
claim included in number of claims, but amount not included in
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Type of Cover a (continued
New Applications
Cancellations
Policies in Force
MILITARY AIR FLIGHT TRIP
New Applications
Cancellations
Policies in Force
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Section III
Specific Plans for Fiscal Year 1961
(7/1/60 - 6/30/61)
1. Complete processing of all Registration Forms under the
new health program (F'EBBA) will be accomplished with top priority.
Since the Federal Employees Health Benefits Act of 1959 provides
that each employee must fill out a Registration Form whether he
wishes to enroll in one of the available plans or chooses NOT to
enroll, a great deal of effort and time will be expended in tracing
the employees who have not filed, and with the necessary slow
follow-up.
A by-product of the new program is the destraation or other
disposal of the old GEHA (white) identification cards and the
issuance of the new; one for high-option and one for low-option.
Cards for all eligible employees will be prepared and forwarded to
Central Cover Branch for determination as to whether or not each
employee may or may not have them. It is anticipated that the
25X9A2 initial load will approximat
As was indicated previously to employees, a new chapter in-
corporating all possible information on the new Federal Health
Program (hospitalization plan) will be incorporated as an additional
chapter, for permanency, in the GEHA booklet, "Association Insurance
Programs."
25X9A2
2. It is antics ated that all obsolete material will be
transferred from the to Records Center, during the
year, this being the material associated with the previous Mutual
plan.
3. Arrangements will be completed for the establishment of
an entirely separate bank account for the new Mutual hospitalization
program, thereby eliminating any security problem should accountings
for this plan be reviewed by the Civil Service Commission.
4. The reviewing of all beneficiary designations on WAEPA
and UBLIC contracts will be completed.
5. Plans will be completed and operations started as soon as
possible, on the newly proposed program for Contract Employees.
This hospitalization and surgical plan will replace the old "Ten-Up"
plan.
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..
6. As soon as work-loads return to normal, a refund of all
advance premiums on the old Mutual contract will be accomplished.
7. Some time before the end of the 'calendar year of 1960,
it is anticipated that another "return of premiums" to UBLIC life
insurance policyholders will be.effected.
8. A very great increase in the number and size of claims under
the new Federal Health Program must be anticipated, especially in
view of the double handling involved when invoking the "Major Medical
$100.00 Deductible" portion. This, together with a natural increase
in enrollments due.to new E.O.I).'s and lack of many lapses for non-
payment, should clearly indicate the need for additional help on claims.
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Section IV
Projected Work-Load Statistics
for Fiscal 1961 - 1962
1. No significant changes-,are contemplated at this time
for Fiscal 1962, other than the normal increase in the over-all
insurance program, with its necessary accompanying increased
work-loads.
2. Work will have to be planned and carried out regarding
the new location of the Branch at such time as the new building
will be completed.
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