THE ANNUAL MEETING OF YOUR GOVERNMENT EMPLOYEES HEALTH ASSOCIATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86-00964R000100030012-1
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 14
• Document Creation Date: December 14, 2016
• Document Release Date: April 18, 2003
• Sequence Number: 12
• Publication Date: January 30, 1978
• Content Type: MIN

Approved For Release 2003WOfl~ P f Tl h1 86-00964R000100030012-1
YOUR
GOVERNMENT
EMPLOYEES
HEALTH
ASSOCIATION
Incorporated Under the Laws of the District of Columbia
in the Interest of Insurance Protection for Agency Employees
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CONFIDENTIAL
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Next 2 Page(s) In Document Exempt
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PROVIDING A VARIETY OF INSURANCE PLANS
- LIFE INSURANCE
UBLIC
FEGLI
WAEPA
CONTRACT
HEALTH INSURANCE
ASSOCIATION BENEFIT PLAN
(HOSPITAL, MEDICAL & SURGICAL)
CONTRACT HOSPITALIZATION
SPECIFIED DREAD DISEASE PLAN
DISABILITY INSURANCE (INCOME REPLACEMENT PLAN)
ACCIDENTAL DEATH & DISMEMBERMENT INS. (24 HOUR FAP)
TRAVEL INSURANCE
AIR FLIGHT TRIP
MILITARY AIR FLIGHT TRIP
CONFIDENTIAL
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$19S,868,44y OF LIFE INSURANCE IN FORCE
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Contract Life
F Policies
1,815,000
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Comparison with 31 December 1976 figures
UBLIC - Policies increased by 35 Insurance coverage decreased by $ 739,479
WAEPA - Policies increased by 19 Insurance coverage increased by $7,205,250
Contract - Policies decreased by 9 Insurance coverage decreased by $ 70,000
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LIFE INSURANCE BENEFITS PAID IN 1977
$600,330
NO CONTRACT LIFE INSURANCE BENEFITS PAID IN 1977
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Comparison with 1976 Benefits
UBLIC benefits down
$ 7,575
WAEPA benefits up
$ 62,181
Contract Life down
$ 10,000
CONFIDENTIAL
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UBLIC LIFE INSURANCE RETIREE COVERAGE AS OF 31 DECEMBER 1977
(Retiree Benefit Initiated 1 June 1966)
$30,730,449 of Life Insurance Continued After Retirement
972 Retirees Under Age 60
With Coverage Totaling
$27,999,000
685 Retirees Age 60 to 70
With Free Coverage Totaling
$ 2,636,446
67 Retirees Age 70 or Older
With Free Coverage Totaling
$ 95,003
104 Claims Totaling $1,424,949 Paid Since June 1966
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Tot
Total number of retirees covered increased by 139
Total amount
of insurance continued after retirement
increased by $1,417,521
Number
of retirees under age 60 increased i
Coverage
of retirees under age 60 increased by $927,000
Num
ber of retirees age 60 to 70 with free coverage
increased by 99
Fre
e Coverage of retirees age 60 to 70 increased by
48 579
Number
of retirees age 70 or older increased by 19
Fre
e Coverage of retirees age 70 or older increased
by $41,942
Tot
Total benefits paid increased by $270,225
Fre
e Coverage on eligible retirees increased
by $490,521
Dec '76 totals
Dec '77 totals
1585
1724
$29,312,928
$30,730,449
cy 2i
951
972
$27,072,000
$27,999,000
586
685
$ 2,187,867
$ 2,636,446
48
67
$ 53,061
$ 95,003
~er of claims paid on
retirees increased by 24
80
104
$ 1,154,724
$ 1,424,949
$ 2,240,928
$ 2,731,449
CONFIDENTIAL
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 CONFIDENTIAL
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HO.SFITALIZATION, SURGICAL AND MAJOR MEDICAL PLAN ENROLLMENTS AND CLAIMS
')11, 781,606
$11,350,239
25
"11,259,943
ASSOCIATION BENEFIT
PLAN
$90,296
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Enrollment in the Association Benefit Plan for 1977 was 26 more than 31 December 1976 figure.
Enrollment in the Contract Health Plan for 1977 was 26 more than the 31 December 1976 figure.
Paid Health Insurance Benefits increased by $788,318 over 1976. The number of health
insurance claims processed increased by approximately 1,715.
CONFIDENTIAL
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HOW THE ASSOCIATION BENEFIT PLAN BENEFITS CHANGED IN JANUARY 1978
The Plan has added as a Basic Benefit, the payment of Hospital Outpatient charges in full for
services and supplies rendered at the time of a surgical operation not requiring hospitalization
as an inpatient.
The Basic Benefit for Hospital Outpatient expenses is increased from $250 per person per
Oalendar year to $400 per person per calendar year.
The Basic Benefit for the administration of anesthetic in connection with surgery is increased
from $30 or 30% of the amount payable for the operation performed (provided the surgical pro-
cedure is a covered expense) to $50 or 30%, whichever is greater.
Under Basic Benefits, Hospital Inpatient expenses, it is now specifically stated that intensive
care units are covered in full.
Under Basic Benefits, Surgical expenses, it is now specifically stated that 1) charges incurred
for a surgical transplant, whether incurred by the recipient or donor, will be considered
expenses of the recipient and will be covered the same as for any other illness or injury, and
2) charges for the services of an assistant surgeon are covered.
The Plan now pays Maternity Benefits the same as for any illness or injury. Also it is clarified
that expenses of the child are payable only if the child is covered under a self and family enroll-
Ient and if the confinement is for the treatment of illness or injury of the child.
The Dollar Maximum imposed on Major Medical Benefit is eliminated.
Under Major Medical, charges by an independent consulting physician for services in relation to
a second opinion regarding the necessity for anticipated surgery are covered.
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For the second consecutive year, the UBLIC Plan experienced a favorable claims to
premium ratio during the contract year ending 31 July 1977. As a result, a sub-
stantial refund of premium was returned to GEHA in October 1977. In December 1977,
the GEHA Board of Directors approved a change in the UBLIC retirement provisions
which is retroactive to 1 August 1976. Prior to this change, all GEHA members
enrolled in the UBLIC plan for less than 10 consecutive years (15 consecutive
years for members enrolling on or after August 1, 1976) prior to their date of
retirement were ineligible for continued coverage under this plan. The change now
permits an enrolled member who retires prior to age 60 to continue in force (until
age 60) the amount of insurance they had at the time of retirement at the same
premium rate paid by active employees in the retiree's age group. Retirees, who
at age 60, meet the 10 or 15 consecutive year participation requirement (as outlined
above) will be eligible for the reduced free UBLIC coverage offered by the under-
writer of this plan. For enrollees who do not meet the 10 or 15 consecutive year
participation requirement by age 60, UBLIC life insurance coverage will cease.
In 1976, the Investment Committee of the GEHA Board of Directors recommended, and
the Board approved, the investment firm of Basic Economic Analysis (BEA) Associates,
Inc. for investment supervision and management of GEHA assets. BEA has the authority
to determine what securities will be bought and sold. However, in exercising this
authority, BEA gives consideration to the instructions and investment objectives of
GEHA.- During 1977 BEA continued the successful management of GEHA investments. Also
during 1977 the Board of Directors had the BEA Vice President and Director,
Mr. John Hurford, travel to Washington from his New York headquarters to meet with
the Investment Committee and the Board of Directors
The Association Benefit Plan (ABP) is experiencing a problem that is common to most
health insurance plans at this time of year - a backlog of medical claims. During
CONFIDENTIAL
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the months of November and December 1977 and in January 1978 the Insurance
Branch has received a large number of medical claims. This has resulted in a
backlog and delay of approximately 5 weeks in the processing and settlement of
claims. As in years past, this backlog is caused by enrollees waiting to
submit major medical claims until the end of the year or in time for income
tax preparation. Adding to the burden of this large end of year submission is
the increasing complexity of the medical claims and billing procedures by
doctors and hospitals. Every effort is being made to process these claims in
an expeditious manner.
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