LETTER TO (SANITIZED)FROM HAROLD E. HUNSAKER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87-00868R000100100016-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 22, 2016
• Document Release Date: November 9, 2009
• Sequence Number: 16
• Publication Date: February 10, 1967
• Content Type: LETTER

UU+WV STATES CIVIL SERVICE CO
BUREAU OF RET1R~MIEN 1D INSURAkd
WASH*4 f pro .C 20415
ja
-ovc r_?:nt r ayces Health Association, Inc.
Porgy OC2ice ?>.: 453
w:,s_ir-ccn, D. C. 20004
y;,a. a'.a c?: ric i cZ ell noes = y :foxti,v schedules and work pa
P; orca, we balicve a rovie-v of come of the roquirerients for the {
prep ztlcu of t'.e stzt t =1 be arproprieto. The statement shall
cover c--::rations for the period from Jcxusry 1, 1966 through Dectber
31, lc 6. It should b3 received in the Cc=mission no Inter than $arch
t'' operations of Jour plain under the Federal H:p1oyeou Health Btnefita
.As you will oon be preparing the Annucl Accounting Statement on the
VI"
scription charces as of December 31, 1966 =y have been shoun on three
Sc 1166a's following that date, i.e., Jenuary 10, Jcnutry 25, and
February 10, 1957. These would have been included in the "12-31-66 and
ancies are noted, a: would a ecicte your brin7irg them to our attention
before releasing your ctste at. Ple^:.e ret >f.:er that the accrued sub-
On the attaehmtnt are advising you of the amount of aubscriptipn
charges paid and eccrEted durirg the cottr2ct period January 1, 1966,
through Docc rr 31, 19655. P1ce.e3 verify our r_?ok.nta "ouur records
before compiling :c r Annul Accou_Lt1113 Statz.::?nt cad if ety dicerep-
established at Dece ber 31 1965 should be submitted if such data,caild
be supported by attached sc{edulea showing-in detail the method by which
the accrual is d?rived. Summary data on the liquidation of accruals
The reporting of the Health Benefits Accrued amounts on line 2(B)(2)
as the incurrod hot unpaid benefits as of Deccuber 31, 1966 must Mill
reports sent to Mr. Zion n, if your pleas submits such reports.
It is important that the Health Benefits Paid reported in the Statement
ho in agreea^nt with or resdily'reconcilable to the consolidation of
your twelve Monthly Sur asry of Arising Claims and Claims Payments'',
prior" classification on the three vouchers.
 We again remind you that the actual incurred administrative expenses
moist not exceed the amount of percentage limitations of total sub-!I
scription charges provided in your contract for this item. In support
of these amounts we would appreciate schedules or reproduction of oak
papers which su-,rize the amount of expense incurred by account, $.e.,
calarios, rent, travel, etc. This scheCule will be subject to audit ami
moot to ?-r.,pr:ortcd by books and records. Your attention is alio dri..n to
~~~ Tza'l-icn of your contract which r-rovic's^s that the administrative
tb?
r'- rC s to only the "actual neccrf:ry incurred expenses determined
on cz cc cable end reasonable basis with props justification and!ac-
cv.3r:tths r spport." Certain items of expense such as advertising an#
pry;::otica for new busineos, entertoira:ant, donations and contributions
are not a]a: ;ble costa under this contract.
For the seventh contract period we will require only one Interim
Accounting Stateent. This state=ant diall cover the period 1-1-67
tbrcucA 6-30-67 end be due in the Co=iesioa no later than August 31,
1967. Fctvor, the subscription c .:rgeo covering this period will
genet:11y include the thirteen pay periods beginning on or after''
Jrmury 1, 1967. Of course ennuitcnts will be covered for six months.
We r nt' o ed in o r Fobrunry 10, 1966 letter that when a new supply of
C J:u9 ! _alth t-r- sirs Eegiotration Form was re-onered it would ;not
inc'LuCe t e T-cgri, t~ carrier central nu=mber and the agencies would use
rc3 1 cocurity number instead. For several reasons, this
c?~c C t.o not es yet been made but. is still being considered. We will
inform you of farther ,ecvelopnients.
We rich to exposes our appreciation for the cooperation accorded us
by you rend your staff throughout the past contact period.
flatold H. Hunsaker
thief, Systems & Audits Office
 STAT
Sanitized Copy Approved for Release 2009/11/09: CIA-RDP87-00868R000100100016-8
 Casrr-- Period Covered
s
Interim or Annual
Accounting Statement
under Appendix B, Contract CS
High Low
Option 0 ion Total
A. Subscription charges received:
(1) Semi-monthly receipts
(2) Payment fron Contingency Reserve
B. Subscription charges accrued:
(1) Beginning of year, B(2) annual
statement :'jr prior year
(2) End of period
C. Total subscription charges
(1) Organization, if applicable
M Memo only: 3 of 1C
Uuc:rurit.er
(4) A".emc- only: of 1C
B. Actual zccrued taxes, underwriter
5. Cew, ve Grin (or Loco-)
A. li:.iu ~or i~v:(.-) ri'o;n rubucription
1410 ri:cii, iy 'Oir,vr
B. frici"ic tilt 141vr:.amuut.n (current year)
C. G:_ain (or loss-) beginning of year,
51) c.ornu l statement for prior year
D. tu. ;lathe gain (or loss-) end of
D2_ _cd
 Cirrier Period Covered
Interim or Annual
Accounting Statement
Under Appendix B, Contract CS
High Low
Option option
(use if applicable -
A. Subscription charges received:
(1) Semi-monthly receipts
(2) Payment from Contingency Reserve
B. Subscription charges accrued:
(1) Beginning of year, B(2) annual
statement for prior year
(2) End of Period
C. Total subscription charges
2. Health Benefits Charges
A. Health benefits paid
B. Health benefits accrued:
(1) Beginning of year, B(2) annual
statement for prior year
(2) End of period
C. Total health benefits charges
3. Expense and Retention Charges
A. Actual incurred administrative charges:
N Organization, if applicable
Memo only: % of 1C
(3) Underwriter
(4) Memo only: % of 1C
B. Actual accrued taxes, underwriter
C. Commissions, % of 1C, if applicable
D. Rick Charge, % of 1C, underwriter
E. Total expense and risk charges
4. G-.in (or Loss-) from Subscription Charges
5. Cu:.olative Gain (or Loss-)
(or loss- from subscription
charges, 4 above
B. Income on investments (current year)
C. Gin (or loss-) beginu:ing of year,
5D amzcvsl statement for prior year
D. Cu -Luiive gasu(or loss-) end of
)( )(
)( )(
 Interim or Annual
Accounting Statement
Under Appendix B, Contract CS
1. Subscri tion Carnes
A . 3wbscript1or: charges received:
(1) Geri-:ronth1vreceipts
(2) Payment from Contingency Reserve
B. 8ubscripti,;n charges accrued:
(1) Deginnfn,x year, u(2)- annual
staLemenC for.prior year
(2) [:nd of
C. Total subscription charges
2. Health Benefits Chr_re
A. Health bene iys (i
B. Health ben::rr; _5 aceri;ec:
(1) Beginning o+ year, B(2) annual
Statement ;'o- prior vear
(2) End of per iad
C. Total h, n'Lir hrrte f3.Lf, rt:;,rge;
3? E rase and !(,-:.ratio,, Ci,ar!>es
A tur..i incurred administrative charges:
(1) Organization, if applicable
(2) t:ext.o only: % of 1C
(3) Underr:a i er
(4) iveno or_ly: of 1C
B. Actual accrued taxes, underwriter
C. Coinnissiors, % of IC, if applicable
D. Fie': Mrrge, a of 1C, underwriter
s. ':' tat expense and risk charges
4. Gc:1?. {cr Lose-ti ''rum &ubscri tion Charges
5. Cis ~,atti,e Gain (or
Lori-)
A '
'in (cr loss trig'-=t nubsrviption
cnturgea, 4 above.
B. Incore on ixxrevimentia (curre.,t year)
C. Gain (;r loss-) bcg.n`in