GOVERNMENT EMPLOYEES HEALTH ASSOCIATION MEETING OF THE BOARD OF DIRECTORS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86-00964R000100070003-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 14, 2016
• Document Release Date: June 27, 2003
• Sequence Number: 3
• Publication Date: January 5, 1966
• Content Type: MIN

Approved For se 2003/0 T P86-00964100070003-7
i'( \T1 i,)v"M ;PVT ";M HE.AL,T11 ASSOCIATION
N1( (! i.fl? ) I
r-(ruLar t~_?eting )f `hc~ Gcvernntent F;mplovees Health
. s-acia inn Boards ;f Directors wa!; held on 5 January 1966, at 10:00 b. m.
%Zroo;:. 51;62, r;t(_,f)clgttarters. Those present were:
,hr tit, Iar'=c
IAN ' t ( k)r
U)i.- - c'ctor
25
he (hairy ioin called ':hc' meeting; to order and noted that the
r ~>:]ri.r )c:cc~=nbcr-nzeetir> w_ts cancelled because of emergency (,omr-rit-
n)er-t' l-),, a nm~ajority of the, Directors. This meeting was scheduled
1. `1 ')!;I( (, )1 the her`?c nbe rniee ti.=lg. The --eading of the Minutes of thel
k A i)>(0 11ii' %var ~I,i:;l)c>)s~=d w).>iti since a 11 Board meiohr.rs had receiv'fcc
iLLLGIB '
'SECRET
dawcgraiin- 1 1
flue ctass7t ?c ly
preceding his ret.iron ent on a :i i imneecia.te aniiw t:y;
2. The prof osed plan has three classes, as follows:
Class 1 for employees, who retire before= rc.a.cl+i.:ng_,
age sixty. 'I'I.is grol.p will be allowed to contiI+uc u!, to
$5, 00U* of ILL]C coverage, but. WLll Continue to pay t;>r 111 111l
at the current rate.
Clash II forcrnpioyees who retire at ages sixty tilrougl,
si:>ty-nine. '.This group includes those retiring exnpioyee:s
covered in Glass I. In this class, up to $5, 000* of ULL C will
be provided at no expense to the individual.
Clasx Ill for retirees age seventy or older. This gr?ou ail
have one-half of the in:u--anc.e coverage carried in Class I and'/..r
Class Il, atssio exper:se.
* 'r he ; nmumn. of !,6, 00C is based on actuarial advice and
is the arn,aunt which t.ire underwriter feels can be supported by the
pro? ram.
`.f~cr a loll
plan., the President
i.hy Ci cutb: JYi. tfy Iioard. I.rrenmbexs of the piupe-~sed
them ir_itlai a.'a c_iscussion of the means by w ich the:
new prog,:am wouldlbc financed. To alternatives were presented:
1. Insuran
coverages. specified
quoted a premium r
-- actual insu:riuice can be purchased for the
in clastic L and 111. The underwriter has
E;.te of $2- 75 per thousand per month.
1.. Self -ill f urance through use of premium return and-reservic -
retiree claims coui be paid flora the return of premiums due from thf:
basic i.3B:_,1C policy If the -,.stain u; pr'endunis is inadequate, the
present UI3LIC ree zve w(,,u.d be used to satisfy retiree clai.rris.
Exa iple: L. our U.BLIC pr ernium amounts to $500, 000
and claims of active c.rrrplcy ees amounted to $i00, 000, a substanti,wi
return of p ?erniurtr to GI-11- would be expected. This sure
would be a cd to pay an`{ retiree claims that may have been
presented 'Luring the period, and the return of lyremiurii would
be reduce ' thereby. At~t?2~33' exam-)1e: If aniployee claims
;mounted,', $400, 000a.:rdretiree claims to $i25, 000, the
lirelriumnr yr ien;; to the underwriter would not be sufficient
to pay all ..airx:ks a:,::d xctcutton costs. 't`hus, the present
UI.iLIC re crvo wuul(I he used to pick up the excess retiree
claiIlis.
The President on..p;ia:si::c:
claim:.: tiio,,.ui b,,3 paid ironi our icscrve.
Approved For Rele se 2003/08/4d ;IL ( 6P86-00964R000100070003-7
 Approved For Rse 2003/08/13 : CIA-RDP86-00964R100070003-7'
the Prosi'cnt rep rt that the underwriter estitnatec at
$1, ` 30, O00 the cost
p.?.ri.od. lie reports
a tnorc definite star
for a 20 -ear perio(
appears That the ref
of the second . alternative over a twenty year
tl furtlte ?, 44:,wev(er, that he has re(.piested