ANNUAL REPORT INSURANCE BRANCH BENEFITS AND SERVICES DIVISION OFFICE OF PERSONNEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01826R000100120007-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 11
• Document Creation Date: December 9, 2016
• Document Release Date: March 30, 2001
• Sequence Number: 7
• Publication Date: June 30, 1961
• Content Type: PERRPT

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F YG e
ANNUAL REPORT
INSURANCE BRANCH
BENEFITS AND SERVICES DIVISION
OFFICE OF PERSONNEL
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Section I
Major Accomplishments and Significant Developments
1 July 1960 - 30 June 1961
Attached, as part of this report, is a summary of Insurance
activity during the reporting period. This shows to some degree
the increased workload that has developed and is still existent,
due primarily to the implementation of the new Federal Employees
Health Benefits Program.
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 in-
formational telephone call is based on a different set of facts and
is therefore handled as a separate complete problem. Time spent on
each such ease-,varies to a great extent, especially in the field of
claims. It becomes obvious that even if work measurement were pos-
sible, because 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.
The same applies to reporting of time spent by the Branch Chief
in discussions and counseling on individual problems regarding the
personal programs of Agency employees of all grade levels. For
example, the Branch Chief presently has been requested to review and
advise regarding the retention of four outside individual hospitaliza-
tion contracts on the life of a dependent of one of our top officials.
This is especially true regarding the briefings of the members of the
Emergency Task Force by the Chief.
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 Pry in General
During the past year certain GEHA programs have shown significant
growth, each of which is detailed in the following paragraphs.
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The last report (1960-1961) showed the work necessary to putting
into effect the Federal Employees'Health Benefits Program. During this
current year the full impact of the tremendously increased volume of
work associated with the program has been felt. The number of policy-
holders of the Association Plan (Mutual of Omaha) has increased 25% in
number, with the work in settling claims nearly doubled due to the
complexities of the Major Medical facet of the program.
Apparently as a result of the last "return of premiums" to all
UBLIC policyholders, enrollment in that program increased about 4%,
with an increase in force of about $1,732,500.00. Every indication
presently points to a continued increase in this program.
The WAEPA life insurance program also enjoyed a steady increase
of $607,500.00. Death claims under both life insurance programs were
twelve for a total of $168,000.00.
All of the other plans administered by GEHA (the Insurance
Branch) showed a steady increase in membership, except the Emergency
Travel, Specified Diseases, and Travel-Matic programs which showed
a slight decrease
Due to the fact that the Federal Employees Health Benefits Act
of 1959 prohibited hospitalization coverage for our contract type of
employees, the Agency made available to these people a hospitalization
contract similar to the High Option Plan under GEHA. This, of course,
terminated the old Ten-Up Hospitalization Plan of insurance which had
previously been offered to contract type employees. The enrollment in
the new Contract Hospitalization reflects about 62% increase in enroll-
ment over the old Ten-Up Hospitalization Plan.
Specific Major Accomplishments:
1. The third return of premiums to UBLIC policyholders
whose coverage was in force on 31 July 1960, was accomplished
without additional help. This was completed before Christmas
with about policyholders receiving checks in the amount
of $62,716.2 .
2. A new Chapter to be added to the gray "Association
Insurance Programs" booklet, dealing with all phases, in detail,
of the new Federa7.Employees Health Benefits Act "ASSOCIATION"
hospitalization and surgical plan, was developed by the Branch
Chief and submitted for coordination. It is anticipated that
it will be printed and distributed in the near future.
3. Since the new hospitalization and surgical coverage
became effective 10 July 1960, the various forms associated
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with the previous Mutual (GEHA) plan will no longer be of use.
Hence a screening of folders, by which all such unnecessary
material is removed from folders and boxed for storage at the
records center has been 75% completed. It involves upwards
of folders.
The volume-and work involved has increased greatly, as
evidenced by the fact that in the first half of the past year
44 advances were made, with this number reaching 91 during
the last six months. During'the year, 135 advances were made
for a total amount of $14,567.50.
5. Due to the difficulty of many employees in understand,
ing the Major Medical portion of the Association Plan, and to
assist the Branch in being able to process claims more
expeditiously, as a result of their being submitted in proper
form, a booklet "The Association Benefit Plan - Record of
Medical Expenses - Instructions for Filing Claims" was
developed by the Branch Chief and distributed to all employees.
6. During the past year, numerous lectures, as indicated
on the attached statistical report, 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, person-
nel officers of components, as well as to those attending the
Personnel Officer Training Course. Briefings continue to be
given to groups and individuals departing from and returning
to headquarters. 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 discussions 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.
7. The regular semi-annual microfilming of the Insurance
Branch records for the Vital Documents file was completed on
April 29, 1961.
8. An audit of the Insurance Branch records by a repre-
sentative of the Audit Staff, covering the year ending
31 December 1960 was completed in May 1961.
9. The period from January 1960 to June 30, 1961, saw
most of the planning for the operational phases of the new
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health (FEHBA) plan "Open Period" completed. Numerous meetings
were held with representatives of Fiscal Payroll, Comptroller,
and Finance with regards the financial implications involved.
Revised Civil Service Commission brochures of the Association
Plan available to Agency employees were prepared for headquarters
and'-the field. In addition, other media of information regarding
the new coverages and increased rates were also prepared by the
Branch Chief.
10. Following the July 19,1960 effective date of the new
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processed, together with the accompanying work supplemental
to the actual drive period. A great deal of overtime was worked
in lowering the extensive backlogs that developed. The Branch
Chief and Deputy Branch Chief worked 116 hours of compensatory
time, while other personnel worked 1,120 hours overtime on this
project.
11. During this closing period of the fiscal year, the
obvious questions and phone calls for information have resulted
in an indescribable comsumption of time. It follows that these
inquiries stem from the additional information required in con-
nection with claims, the new "Open Period" etc. Consequently,
it has been necessary to assign an additional employee to the
receptionist duties.
12. The Branch Chief, as Vice President, and the Deputy
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 of the
regular Board meetings constitute further duties required, to-
gether with the preparation of notices, ballots, and other
functions associated with the annual election of GEHA officers.
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13. Following::.the start of the new FEHBA program, it was
determined that similar coverage would be made available to
contract types of employees. The necessary forms, information,
etc. were prepared and distributed by the Branch. Numerous
conferences with Finance, Machine Records, etc. were attended
by Branch representatives. The old "Ten-Up" contract was
cancelled and all transferred to the new plan. This project
was completed during the year.
14. As a result of the cancellation of the old Mutual Plan
at the time of the inception of the Association Plan, a large
number of refunds were due to policyholders who had been paid
beyond July 9, 1961, the cut-off date. This project was completed
with approximately refunds, in the amount of $95,000.00
being made.
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15. The Branch Chief, in cooperation with representatives
of the Office of Security and of Central Cover Divi
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The following Section reflects a report of the operational
activities of this Branch for the reporting period.
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:;..mitts
SUMMARY OF INSURANCE ACTIVITY
1 July 1960 - 30 June 1961
Type of Coverage
New Applications
Reinstatements 1
Cancellations
Policies in Force
Insurance in Force $17,232,500.00
Claims (1) $ 120,000.00
New Applications M~M
Reinstatements
Cancellations 105
Policies in Force
Insurance in Force $29,197,500.00
Claims (2) $ 4$,000.00
Total Life Insurance . . . . . . . . $46,430,000-00
MUTUAL (Old and New)
Policies in Force
Claims Paid
No. of Claims
Average per Claim
$ 1)114; 07-591
$ M
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New Applications
Cancellations (3)
Policies in Force
Claims Paid
No. of Claims
625
579
625
0
(1) Eight Deaths (eight at $15,000.00)
(2) Four Deaths (one at $3,000.00, and three at $15,000.00)
(3) All policies automatically cancel after being. in force one year.
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Type of Coverage (continued)
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INCOME REPLACEMENT
New Applications 1+2
Cancellations 22
Policies in Force 201
No. of Claims 10
Claims Paid $ 5,335.71
Reinstatements 0
SPECIFIED DISEASES
New Applications 150
Reinstatements 2
Cancellations 226
Policies in Force
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No. of Claims 11
Claims Paid $ 1,699.79
TRAVE
L-MATIC
New Applications 121+
Reinstatements 0
Cancellations 61
Policies in Force 292
EMERG
ENCY TRAVEL
New Applications 48
Cancellations 65
P
olicies in Force 85
N
o. of Claims 5
C
laims Paid $ 3,1+31+.16
TEN-UP
HOSPITALIZATION
N
ew Applications 15
R
einstatements 0
C
ancellations 182
P
olicies in Force 0
N
o. of Claims 31
C
laims Paid 3,776.49
A
verage per Claim 121.82
(NEW)
CONTRACT HOSPITALIZATION
New A
licati
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pp
ons
Cancellations
Policies in Force A 2
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No. of Claims 51+
Claims Paid
$ 7,1+92.11
Average per Claim
$ 138.74
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T Pe of Coverage (continued)
TEN-UP LIFE
New Applications 23
Cancellations 13
Policies in Force 78
Insurance in Force $390,000.00
Claims Paid $ 5,000.00
New Applications 1.8
Cancellations 19
Policies in Force 68
MILITARY AIR FLIGHT TRIP
New Applications 120
Cancellations 117
Policies in Force 4
Miscellaneous
ADVANCES FOR HOSPITALIZATION
Number Made 135
Amount $ 14,567.50
TALKS TO NEW E.O.-D.'-s
Number of Talks 50
Number in Attendance
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Section II.
Specific Plans for Fiscal Year 1962
(7/1/61 - 6/30/62)
1. In conjunction with the new "Open Period" for Association
Plan enrollments (October 1-16, 1961), a revised brochure will be
finally prepared, printed, and distributed. The distribution, receipt,
and processing of the registration forms during the drive, from those
wishing to change plans, will be accomplished with what is hoped will
be; a minimum of babklogs of other work. Other media, such as all-station
notices regarding increased rates, etc., will be prepared and distributed.
2. Final stripping of all folders, of material dealing with old
Mutual, will be accomplished, with such material being sent to Archives.
3. The final printing and distribution of the new Chapter on
the "Association Plan" will be completed, such chapter then to become
a permanent part of the insurance booklet, "Association Insurance
Programs."
4. It is reasonable to assume that some time before the end of
the calendar year 1961, another "Return of Premiums" to UBLIC policy-
holders will be effected.
5. It is hoped and anticipated that both the new Division Chief,
and the Branch Chief, may be afforded the opportunity for an orienta-
tion trip to the home offices of Mutual of Omaha. This would prove
of great value to both, in completing all future negotiations and
conduct of business.
6. Plans concerning the move, to the knowledge of the Branch,
are very indefinite so far, except for the fact that we will be remain-
ing in town. It is hoped that in the new space, even if we remain in
one of these "tempo" buildings, a cage area can be arranged for. It
is quite a problem to have a security check of nearly 110 safes (II--drawer),
when all but one doing such check are female.
7. In connection with the new building, the Branch would like to
point out the need for a room for the use of the Chief or Deputy Chief
on certain days, so that discussions with individuals can be conducted
on the spot. Privacy is necessary on most occasions because of either
the personal or covert nature of the discussions.
8. The Branch recommends an overseas trip by a representative
of GEHA to the WE and EE areas for the purpose of orienting personnel
regarding the new health insurance programs, especially in view of the
many changes, etc. available to overseas personnel.
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Section III
Projected Work-Load Statistics
for Fiscal 1962 - 1963
1. No significant changes are contemplated at this time for
Fiscal 1963, other than the normal increase in the over-all insurance
program, with its necessary accompanying increased work-loads.
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