ANNUAL REPORT INSURANCE BRANCH BENEFITS AND SERVICES DIVISION OFFICE OF PERSONNEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01826R000200100010-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 18
• Document Creation Date: December 14, 2016
• Document Release Date: September 27, 2002
• Sequence Number: 10
• Publication Date: June 30, 1966
• Content Type: PERRPT

Approved For Release 2003/01/29 : CIA-RDP80-0146R000200100010-2
SU
ANNUAL REPORT
INSURANCE BRANCH
BENEFITS AND SERVICES DIVISION
OFFICE OF PERSONNEL
CUP 1
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SECTION I
Major Accomplishments and Significant Developments
1 July 1965 - 30 June 1966
25X1X1
Attached, as part of this report, is a summary of
Insurance activities during this reporting period. The work-
load in the Branch is still on an upswing due to the increased
number of new applications on all plans, cancellation and
refund of prepaid premiums on two of our plans, open period
on one of our old plans, and a general increase in the
complexity of problems associated with the overall settlement
of claims. In addition, heavy burdens have been felt as the
result of cover and security problems relating to the establish-
ment of additional types of hospital admission cards, as well
as cover and security problems relating to terminating and
retiring employees.
The claims processed in this Branch for the
Association Plan Hospitalization under the Federal Employees
Health Benefits Act, should, but cannot, be considered routine.
Almost each claim is an individual challenge to the claims
adjudicator, as more and more detailed reauirements reanril-
Another source of additional work has been the
establishment of another fiscal account to record the salary
reimbursements to be made to the Agency in line with established
policy to subsidization wherever possible. This account is in ad-
dition to the two already established--making a total of three.
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The difficulties experienced in obtaining replacements
is even more pronounced than it was last fiscal year, placing
a tremendous workload on the personnel of this Branch. However,
with the dedicated approach to the problem of "picking up the
slack" the employees of the Branch have succeeded in keeping
backlogs at a reasonable minimum. The problems faced have,
of course, been compounded many times by the totally inadequate
space (Headquarters Cashiers Office) and physically split
locations of operations (two different places in Headquarters and
two different places in Magazine Building). A unified operating
location could not help but make for more economical and
efficient use of personnel on an interchangeable basis, as well
as flow of work.
Our move from R&S to the Magazine Building on
January 3 also consumed quite a few manpower hours prior to,
and after the move.
The health statement accompanying many of the new
Income Replacement, UBLIC, WAEPA, Contract Hospitalization
and Contract Life Insurance applications or increases in coverage
under the UBLIC Life Insurance Plan are reviewed and approved
by the Acting Branch Chief. This calls for careful underwriting
and occasional dealings with the Medical Staff. Some of these
applications require as many as five or six conversations with
the applicants in advising them of necessary procedures to
obtain coverage or at least finalize action in the case. During
the period September 1965 (the date Deputy Branch Chief fell heir
to the job of Acting Branch Chief) through 30 June 1966, 353 ap-
plications have been reviewed. The above, in addition to all of
the other many, many duties, including the training of
I I who in my opinion will be a definite
asset to FE-is-o-TH-ce as he becomes more cognizant of the policy,
procedures, and day-to-day operations of the office, has somewhat
bent (almost broken) the back of this Deputy Chief/Acting Chief.
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Implementation of the CIA Retirement System
caused quite a few headaches for this Branch in regard to
the Federal Hospitalization Program until such time as
satisfactory procedures were finalized.
The Chief and Deputy Chief/BSD are working on
a program whereby terminal benefits for retiring UBLIC
policyholders will be effective, retroactive to 1 June 1966.
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Specific Major Accomplishments:
1. An "open period" for PAMA (Parents Associated
Medical Assurance) enrollment was from 1 June through
31 July 1965. Approximately 232 new applications were received.
Due to coverage under MEDICARE, effective 1 July 1966, the
PAMA Plan will be cancelled 30 June 1966. This will create
an additional workload of issuing refunds for prepaid premiums.
2. Effective 1 August 1965, benefits were improved
and rates increased on Contract Hospitalization. Notices were
sent to all administrative officers advising of same. A 4%
administrative charge was included in the increased premium,
the money to be used towards possible subsidization of salary.
3. During the months of October and December 1965,
the Insurance Branch administered the Flu Shot Pro ram. The
Medical Staff gave
during the period. the total amount collected ($2, 371. 9), $2, 175. 00
was used by the Medical Staff to defray the costs of vaccine used,
and the balance of $196. 96 was given to the Employee Services of
the Benefits and Services Division.
4. The benefits were improved, with a slight increase
in premiums, on Federal Hospitalization (Association Plan), as
of 1 January 1966. Headquarters Notices re Association
Plan were prepared for distribution to a employees. An additional
1% administrative charge was included in the increased premium,
the money to be used towards subsidizing salaries.
The change in benefits necessitated the reprinting of
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5. A representative of the Branch conducted personal
interviews with 1, 701, employees who were resigning, retiring,
or going on LWOP during this fiscal year. In addition, written
information was forwarded to 428 employees who separated
from the Agency in absentia.
6. The DENTA plan of insurance was cancelled
31 December 1965, resulting in 1, 099 refunds for prepaid
premiums, in the total amount of $9, 303. 55. Notices were sent
to all policyholders re termination of the Contract (2, 200).
7. A total of 11, 141 premium due reminder notices were
forwarded to policyholders insured under Emergency Travel,
WAEPAp UBLIC, Contract Life, DENTA, PAMA, Income Replace-
ment, FAP, and Specified Diseases.
8. Correspondence in the form of 95 inter-office
memoranda, 25X9
25X1C4E 334 GEHA letters were written and typed during this
period. Of course, these figures do not include routine form
letters and reports, as well as correspondence and reports
originating in the Office of the Branch Chief. A total of 25X1
checks were also written necessitating the typing of approximately
25X1 Otransmittal form letters or memoranda.
9. The usual GEHA Board Meetings, Annual GEHA Meet-
25X1 ingIBoard Meetings, and Annual Audit by the Audit Staff, were
accomplished during this period.
25X1
11. In November 1965, a check for $330, 888. 00 was
received from UBLIC representing a return of premiums for the
year ending 31 July 1965.
12. Flight Plan and Travel-Matic Plans of insurance
were cancelled 1 May 1966.
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13. Numerous lectures, as indicated on the attached
statistical report, continue to be given to all EOD's by
representatives of the Branch. These lectures include those
given each week to professionals and Commo. at Headquarters
Building and clerical recruits at 16th Street, as well as
Clandestine Services .lectures and lectures to individuals or
individual groups leaving and returning to Headquarters, JOT's,
etc.
14. Processed 747 new applications, changes and
terminations under the Federal Employees Health Benefits Act
of 1959 (other than Association Plan). This involved memoranda
to Cover and Security for approval or disapproval of 364 new
applications.
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Insurance Programs in General
During this fiscal year, the GEHA program in general
continued to grow as indicated on the preceding pages of this
report. Also, each individual plan of insurance, with the
exceptions of Air Trip, Military Air Trip, and Specified Diseases,
increased, as indicated below.
a. The Federal Hospitalization Association Plan
reflects an increase of 16 ' membership, as policies
in force are now ereas as of the last Fiscal
Year, the total This is misleading inso-
far as work loads are concerned as 1, 084 new applica-
tions and 1, 099 cancellations were processed during
this period. Also, 747 new applications, changes
and cancellations on Federal Plans of Hospitalization
other than the Association Plan were processed.
Total policies in force for Federal Plans other than
Association Plan are 1, 421.
b. The WAEPA Plan showed a gain of 209 policy-
holders for a new total of and an amount in force
of $28, 140, 000. 00, an increase of $3, 785, 625. 00.
c. The UBLIC Plan still continues to grow with
25X9 policyholders being covered by $88, 357, 000. 00
in force, an increase of 80 policies for $2, 309, 500. 00.
d. The Contract Life reached a new high of
policies and $4, 810, 000. 00 in force, an increase of
28 policies and $392, 500. 00.
e. The total in force under the WAEPA, UBLIC
and Contract Life Insurance Plans is
for $121, 307, 000. 00, an increase of $6, 487, 625. 00.
f. The PAMA (Parents Associated Medical
Assurance)Plan terminated as of 30 June 1966. How-
ever, there was an increase of 121 new policyholders
during this fiscal period. An "Open Period" for this
Plan was held during the period 1 June - 31 July 1965.
A total of 232 new applications were received.
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fourteen 28-day pay periods whereas this reporting
period is for only thirteen 28-day pay periods.
The following Section reflects a statistical report of
the operational activities of this Branch for the reporting period.
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Types of Coverage (continued)
New Applications
Cancellations
Policies in Force
Claims Paid
New Applications
Cancellations
Policies in Force.
Claims Paid
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FLITE PLAN (Terminated 5/31/66)
New Applications
Cancellations
Policies in Force
Claims Paid (1)
TRAVEL-MATIC (Terminated 5/31/66)
New Applications
Cancellations
Policies in Force
Claims Paid
New Applications
Cancellations
Policies in Force
Insurance in Force
Claims (1)
New Applications
Cancellations
Policies in Force
Number of Claims
Claims Paid
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0
86
0
4,400.00
0
303
0
0
$ 67, 530, 000. 00
$ 25, 000. 00
5
3,585.58
GUI.? 1
EAC!~.~c i ff. i E.'rtbli?tic
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Type of Coverage (continued)
INCOME REPLACEMENT
New Applications
Cancellations
Policies in Force
Number of Claims
Claims Paid
SPECIFIED DISEASES
New Applications
Cancellations
Policies in Force
Number of Claims
Claims Paid
25X9
CONTRACT HOSPITALIZATION
New Applications
Cancellations
Policies in Force
32
31
282
20
$6,363.03
104
124
1, 146
3
47.70
Number of Claims
Claims Paid
Average per Claim
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$76,238.64
)
$ 197.00 )
These figures are
for the P/P 5/9/65 -
4/9/66
These figures are for
the P/P 5/9/65 -
5/7/66
FEDERAL ASSOCIATION PLAN HOSPITALIZATION
New Applications
Cancellations
Policies in Force
Number of Claims
Claims Paid
Average per Claim
PAMA HOSPITALIZATION (Terminated 6/30/66)
New Applications
Cancellations
Policies in Force
Number of Claims
Claims Paid
Average per Claim
270
149
1, 234
474
113, 134.27
238. 68
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These figures are
for the P/P 5/9/65 -
4/9/66
These figures are for
the P/P 5/9/65 -
5/7/66
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Types of Coverage (continued)
DENTAL INSURANCE (DENTA) (Terminated 12/31/65)
New Applications
Cancellations
Policies in Force
Number of Claims
Claims Paid
Average per Claim
MISCELLANEOUS
TALKS TO NEW E, 0. D. I s
Number of Talks
Number in Attendance
204
2, 350
0
1, 347
$158, 444.98
$ 117.63
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SECTION II
Specific Plans for Fiscal Year 1967
(7/1/66 - 6/30/67)
1. The Civil Service Commission has declared an
"open season" for Federal Hospitalization for the period
14 through 30 November 1966. This will involve additional
workload, as follows:
(a) Prepare a I Headquarters
Notice re Association Plan Hospitalization for
distribution to all employees.
(b) Revise the Association Plan Hospitalization
Brochure for reprinting.
(c) Revise the Association Plan Major Medical
Brochure for reprinting.
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(f) Mail BRI 41-117 Federal Employees Health
Benefits Program Brochure (information about Plan
changes, effective January 1967) to 1, 421 individual
Agency employees insured under the Service Benefit
Plan, Indemnity Benefit Plan, Group Health, National
Postal Union Health Benefits Plan, and the SSS Plan of
Puerto Rico.
(g) Process new applications and/or changes.
Of course, there is no way to arrive at a definite
figure but during the last "open season" the figure
was 453.
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(h) In addition to (g) above, there will be
327 applications for changes to a High Option
Plan for employees insured under the Low Option
Association Plan if the termination of our
LOW OPTION Plan is approved by the Civil
Service Commission.
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2. The procedures have been finalized and co-
ordinated with the Office of Security and Cover Staff which
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(d) Of course, this will involve additional work
throughout the Branch, as well as training of employees.
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3o Headquarters Notices have been prepared
for distribution to all employees re changes in the Emergency
Travel Plan of insurance which should be released during this
fiscal year. The amount payable under the contract will be 75%
of the actual two-way transportation cost of the purchaser, or
designated substitute, from place of assignment to location
where purchaser's attendance is required, as a result of very
serious illness or death of a named person. The amount payable
is limited to $500. 00 (Plan 1), $1, 000. 00 (Plan 2) or $1, 500. 00
(Plan 3). It is anticipated that quite a few new applications will
be received as employees can purchase Plan 1 or Plan 2, whereas
at present only Plan 3 is available.
4. The terminal benefits under the UBLIC plan of
insurance will definitely increase the number of changes
(increase in coverage) and new applications received, with the
necessary review of health statements. Taking into consideration
the strength of the Agency and the fact that we now have only
4, 415 policyholders, eliminating those that do not have 10 more
years of service prior to retirement, and there remains a sizeable
number of potential applicants.
5. Approximately 550 refunds of prepaid premiums to
PAMA policyholders must be issued, due to cancellation of contract.
6. The Office of Computer Services has agreed to include
24 tickets in each payment book for UBLIC, WAEPA, and
Contract Life plans of insurance instead of the 12 tickets in each
book at the present time. This will be a welcome change for our
policyholders, as well as a savings of time in our Branch.
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SECTION III
Projected Workload Statistics
for Fiscal 1967 - 1968
Normal growth of all plans administered by the
Insurance Branch can be expected to take place during
fiscal 1967 - 1968 due to improved benefits being added
to the plans now in effect, as well as the probability of
new plans being added to the program. Also, workloads
will undoubtedly increase due to more retirements, as
well as new applicants and terminations. In addition,
improved benefits such as terminal benefits under the
UBLIC policy, should definitely increase the growth of
this plan, as well as an increased number of death claims.
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