ANNUAL REPORT INSURANCE BRANCH BENEFITS AND SERVICES DIVISION OFFICE OF PERSONNEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01826R000200030016-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 9, 2016
• Document Release Date: June 27, 2001
• Sequence Number: 16
• Content Type: REPORT

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ANNUAL REPORT
INSURANCE BRANCH
BENEFITS AND SERVICES DIVISION
OFFICE OF PERSONNEL
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SECTION I
Major Accomplishments and Significant Developments
1 July 1963 - 30 June 1964
Attached, as part of this report, is a summary of Insurance
activity during the reporting period, 1 July 1963 - 30 June 1964.
During this period the workloads increased to a degree even
beyond our "wildest" estimates, especially with the expanded
UBLIC program. The normal increase in the number and
complexity of the claims continues to take place, in fact to the
point where overtime has been necessary on occasion to hold
down claims backlogs. An added workload has been placed on the
Branch due to the necessity of the extra amount of information
required to be disseminated regarding the new or expanded plans,
this basically being handled by the Branch Chief, since the Deputy
Chief worked with daily operational activities.
Once again the old phrase "increased complexity" must be
applied to the overall insurance operations, not only because of
the more varied types of claims submitted, but also because of
the added duties necessitated as a result of cover requirements.
More and more, there seems to be concentrated efforts to provide
more individual groups with special cards or other means of
providing hospital admissions for personnel with covert operations.
As stated before, the "assembly line" method of settling claims is
a thing of the past. Again may we report that the increased usage
cards, has greatly added to the tremendous workload of the Branch.
The Branch Chief continues to become more involved in
special projects' problems, even to the point of visiting areas on
insurance matters. In addition, a great deal of his time has been
taken in discussions with the underwriters in dealing with current
problems, in .planning for the additional coverages (DENTA -
UBLIC expanded), and in negotiations with Civil Service Commission.
Excluded ts?;n
de" ;i3}
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During the year, the Branch Chief visited the home offices
of Mutual and UBLIC in Omaha, Nebraska. Part of his time there
was spent in working out the preliminaries in a plan for possible
use by - The year also saw arrangements made for continued
coverage for certain personnel, whose component was being
transferred to another Agency--such was done with the Income
Replacement Plan. This could prove beneficial to all such policy-
holders. One trip was made to tlhe site of a project as a result of
which two additional I. D. cards were set up and have functioned.
From a lecture standpoint, the Branch Chief was invited to
speak at a number of Senior Staff meetings, i. e. Director of
Personnel, Logistics, Commo, etc., and a number of Division meet-
ings at which time the new plans were explained. In addition, he
lectured on two odhasions at~ Other representatives of the
Insurance Branch visited= and lectured to personnel there. The
Branch Chief, with the Division Chief, are regular lecturers at the
Clandestine Services Review Course. In addition, due td. the increase
in coverage available, the Branch Chief was called upon to have many
more than the usual number of discussions with individuals of all
grade levels, regarding their overall insurance programs. The
health statements accompanying many of the applications for increased
UBLIC coverage, were reviewed and approved by the Branch Chief
personally, this calling for careful underwriting and occasional
dealings with the Medical Staff. Some of these applications required
as many as five or six conversations with the applicants in advising
them of necessary procedures to obtain coverage or at least to
finalize action in the case. The period of the UBLIC drive demonstrated
most vividly the need for additional assistance for the Branch Chief in
the field of life insurance underwriting and individual counseling. Due
to the heavy backlogs of UBLIC and DENTA applications during the
open periods, it became necessary, on several occasions, to have the
Deputy Branch Chief assist in the Cashier's Office.
Insurance Programs in General
During this reporting year the GEHA program enjoyed its
quickest and greatest increase both as to number of enrollees as well
as "in force" totals of the various plans, as indicated below:
The Federal Employees Health Benefits Plan
(Association) reached a new high of - policyholders,
some being added due to the open periods permitted during
this year.
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The WAEPA Plan showed a significant gain in
the number of new policies in force, 126, for a total
increase in the amount of insurance in force of $6, 280, 625. 00.
All of these applications were reviewed by the Branch Chief's office
for approval of health statements. This increase in insurance
in force is mainly attributed to the increased supplemental
coverage granted WAEPA policyholders without charge, i. e.,
effective January 21, 1964, policyholders in the group to
age 41, were automatically granted $5, 000 supplemental
coverage, those 41 to 50, $2, 500 and through 50 and over,
were allowed an additional $1, 250 coverage.
The UBLIC plan of life insurance, of course, %howed
the almost unbelievable growth of $46, 098, 000 in the past
year, or an increase of 134%. This was primarily the result
of the "open period" to allow persons to apply for the
expanded coverage during the period of February 1 through
March 27, 1964. During this period,_new applicants 25X9
25X9 applied, and- increased coverage already held. The
total amount of life insurance currently in force under the
UBLIC plan is $80, 409, 000. 00.
The total in force under the WAEPA and UBLIC
life insurance plans is - policies for $104, 239, 625. 00.
This figure represents a combined increase from both
plans in the amount of $52, 378, 625. 00.
The PAMA (Parents Associated Medical Assurance)
plan enjoyed a successful year. Implemented on 1 June 1963,
the total number of enrollees has now totalled
The DENTA plan, established in January and
February 1964, by an open period, is off to a good start
25X9 with-members. Both of these plans may have new
open periods during the coming year, depending on the
experience of the first year of operation.
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Specific Major Accomplishments:
1. During the past year the need for establishment of
additional special identification hospital admission cards under
the JMWAVE Project was brought to light. The Branch Chief
visited the area involved and established the necessary cards,
working out the necessary liaison with the Mutual of Omaha repre-
sentative in, the area. This brought the total number of special
cards used by JMWAVE to three.
2. Steps have just been completed preparatory to
establishment of a special "I. D. " card for use with certain
employees who retire after being under deep cover. In addition,
similar work has been done prior to possible establishment of
a card for persons traveling on a "temporary" basis, such cards
to be for use only during this temporary travel status. It is hoped
that these two procedures can be perfected during the coming year.
3. The annual audit was completed for the year ending
31 December 1963, and the report filed and reviewed by the officers
and Board of Directors. Again, only a couple of minor points were
raised, with the result;that the Board commended the officers and
personnel employed in the GEHA program for the fine report.
4. During the period October 1-15, 1963, both dates in-
clusive, the limited "open period" for the Federal Employees Health
Benefits Act program, about 550 changes in the individual accounts
were accomplished.
5. Effective 1 November 1963, the new yellow brochure,
"Association Benefit Plan" was revised and reissued. The revision
was done by the Insurance Branch and printed through Agency
facilities. This brochure outlined two changes made in coverage,
i. e., the limit of 50 on number of psychiatric visits permitted in
one year was eliminated and a person using a private room in
a hospital received credit under major medical up to the amount of
the average charge for a semi-private room in that particular
ho spital.
6. The Dental program brochures were prepared and
distributed and the program implemented during the period of
July and August 1963.
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7. The PAMA plan was placed in effect during the period
of July and August 1963.
8. Due to a growing need, as a result of stepped up travel,
arrangements were made during the year, to permit the purchase
of Air Trip and Military Air Trip at overseas stations. This had
previously been limited to headquarters. Permission was received
from the Underwriter and safeguards, such as certifications from
responsible::overseas officials, were established to permit such
purchases to be permitted. Monies and lists of purchasers are
submitted monthly directly to the Insurance Branch.
9. The ;Period March 17, 1964 through June 30, 1964 was
designated as a "limited open period" by Civil Service Commission,
for employees to make changes in their health benefits registrations.
A number of improvements were made in the coverages under all
federally sponsored plans such as the expansion of the "family
member" to include unmarried children to age 21, instead of to
age 19, as at present. Instructions, forms, etc. necessary for
implementation of these leniencies were prepared and distributed.
This of course involved close liaison with Civil Service Commission.
10. Due to the fact that the rates at government hospitals
were raised at overseas areas, an opportunity was afforded
employees, who, unaware of this raise in charges, had failed to
change to high option during the October 1-15 period, to change to the
more lucrative high option plan. This was done during December 1963.
11. The sixth annual "return of premiums" to UBLIC policy-
holders whose coverage was in force on 31 July 1963, was completed.
A total of $79, 224. 24 was returned to-policyholders during the
year. This again represented a 33 1/3% return of all premiums paid
during 'the year.
13. The second annual "financial statement, " in the form
of an "Annual Inforrm tion Sheet, "i as of 31 December 1963, was
distributed, and again it brought "words of appreciation" from
persons who received it.
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15. The Branch was-required to again move during the
year. On March 16, 1964, with very little forewarning, the move
was completed to quarters in R&S Building. To avoid loss of time,
in view of our backlogs, the office worked on the Saturday following
the move. The new quarters are reasonably comfortable, except
for the heat which is so noticeable, due to the tar roof completely
surrounding the area.
16. The Branch Chief visited several field installations
during the year and found the visits to be well worth the cost
involved when measured against the appreciation exhibited by those
being visited. The home office visit (MUTUAL) was most beneficial
and, as recommended by the underwriters, should be semi-annually
scheduled.
17. Numerous lectures, as indicated on the attached
statistical report, continue to be given to all EOD's by representa-
tives of the Branch. These lectures include those given to
professionals at headquarters and those given to clerical recruits at
16th Street. As was mentioned previously, the Branch Chief lectures
to individual groups both in and away from headquarters. Groups
and individuals leaving and returning to headquarters, and JOT groups
or individuals, are briefed by the Branch Chief or by the Deputy
Branch Chief. As part of this briefing program, a regular schedule
of points to be briefed has been arranged providing a similar briefing
to all personnel.
18. During the months of October and December 1963, the
Insurance Branch administered the Flu Shot program. The Medical
Staff administered - vaccine shots during the period. Of the
total amountrxeceived $1, 470 was turned over to the Medical Staff
to defray the costs of the vaccine used, andthe balance of $648. 55
was given to the Employee Services of the Benefits and Services
Division.
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19. The Branch Chief, as Vice President-Secretary,
and the Deputy Branch Chief, as Treasurer of GEHA, provided
the President and Board of Directors with detailed statistical
reports for use in deliberating policies involving the Insurance
program. Minutes and reports of the Board of Director's meetings
constitute further duties for the Secretary. He also sets up the
Annual Membership meeting and prepares, distributes, and counts
the ballots for the election of Directors.
The following Section reflects a report of the operational
activities of this Branch for the reporting period.
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1 July 1963 - 30 June 1964
Type of Coverage
WAE PA
New Applications
204
Cancellations
78
Poli
s i
e
i
F
c
e
n
orc
_
Insurance in Force
$23,830,625.00
,Claims (5)
$ 32, 217.43
New Applications
Cancellations
Policies in Force
Insurance in Force
$80,409,000.00
**Claims (14)
$ 123, 200.00
New Applications
62
Cancellations
67
Policies in Force
M
Insurance in Force
$ 3, 987, 500. 00
Claims (0).
0
One at $15, 000. 00; one at $15, 014. 80; one at $1, 000. 00
(dependent); one at $1, 002. 63 (dependent); one at $200. 00
(dependent).
=~t>~ Two at $15, 000. 00; one at $30, 000. 00; two at $25, 000. 00;
sr;nat $1, 000. 00 (dependents); one at $200. 00 (dependent);
one at $6, 000. 00.
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Type of Coverage (continued)
New Applications
*Cancellations
Policies in Force
Claims Paid
897
536
898
0
New Applications
105
Cancellations
97
Policies in Force
21
Claims Paid
0
New Applications
22
Cancellations
22
Policies in Force
72
Claims Paid
0
New Applications
108
Cancellations
87
Policies in Force
341
Claims Paid
0
New Applications
13
Cancellations
39
Policies in Force
58
No. of Claims
1
Claims Paid
$526.43
* All policies automatically cancel after being in force one year.
* * All policies automatically cancel after being in force for 30 days.
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Type of Coverage (continued)
INCOME REPLACEMENT
New Applications
Cancellations
Policies in Force
No. of Claims Paid
19
Claims Paid
6, 446.63
SPECIFIED DISEASES
New Applications
181
Cancellations
167
Policies in Force
No. of Claims Paid
4
Claims Paid
1,755.59
*OLD MUTUAL
Claims Paid
92. 98
No. of Claims
5
Average per Claim
18. 59
CONTRACT HOSPITALIZATION
New Applications
Cancellations
Policies in Force
No. of Claims
Claims Paid
Average per Claim
214 (as of 6/6/64)
86 (as of 6/6/64)
as of 6/6/64)
276
52, 028. 37
188. 51
MUTUAL HOSPITALIZATION (Association Plan - FEHBA)
New Applications 0 (as of 6/6/64 25X9
Cancellations (as of 6/6/64)
Policies in Force (as of 6/6/64)
No. of Claims
Claims Paid
Average per Claim
1,586,798.61
No claims accepted after 1/1/64, per agreement with Underwriter.
- 10 -
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Type of Covera e (continued)
PAMA HOSPITALIZATION (Contract effective 6/1/63)
New Applications
Cancellations
Policies in Force
280
No. of Claims
$ 69, 992.00
Claims Paid
$ 249.97
Average per Claim
DENTAL INSURANCE (DENTA)
(ontract effective 12/9/63)
New Applications
Cancellations
Policies in Force
226
No. of Claims
$ 24, 463.96
Claims Paid
108.25
Average per Claim
Miscellaneous
TALKS TO NEW E. 0. D.'s
Number of Talks
Number in Attendance
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SECTION II
Specific Plans for Fiscal Year 1965
(7/1/64 - 6/30/65)
1. Efforts will again be made to issue a revision of
the gray "Association Plans" booklet, thereby bringing it up
to date, including a chapter on the Federal Employees Health
Benefits Program.
2. The Branch again hopes to arrange an overseas
trip by a representative of GEHA, together with one from BCB,
for the purpose of expediting and setting up all matters involving
the Benefits and Services Division, and to assure that personnel
responsible for such matters are completely appraised of all
necessary and current information. Such trip could be tied in
with assembling of appropriate personnel on an area basis.
3. Plans presently agreed upon call for the Chief, BSD,
and the Chief, Insurance Branch, to visit the home office of
Mutual of Omaha, Omaha, Nebraska, at least semi-annually.
4. With the increased workloads expected, due to normal
growth of the plans, plus the extra work resulting from the PAMA
and DENTA plans, additional personnel will be required to keep
work current. A qualified man, with an insurance background, for
assignment to the Branch, has been recruited and it is hoped he
will develop into a possible future Agency insurance specialist able
to assist the Chief with all policy and liaison matters. It is also
still planned, in view of our more than 24, 000 folders in the files,
and which involve traffic of about 300 folders "in and out" daily,
to establish a files unit of two people with one grade GS-6 or 7 in
charge.
5. The officers will continue to study all plans presently
in effect, with a view to making any improvements possible in
them. In addition, other plans not now existent will be studied,
with the idea in mind of possible future adoption.
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SECTION III
Projected Workload Statistics
for Fiscal 1965 - 1966
Normal growth of all plans administered by the
Insurance Branch can be expected to take place during
fiscal 1965 - 1966. In addition, due to long-range planning
other new plans will probably be added to the program.
This will undoubtedly necessitate additional personnel
with the necessary supervisory position adjustments to go
with such increase.
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