Repository: UIHistories Project: Board of Trustees Minutes - 1942 [PAGE 19]

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BOARD OF TRUSTEES

[July 17

not offer the same benefits and at the price offered by the Fund. More recently, representatives of the North American Accident Insurance Company have suggested a plan and have presented a proposal which deserves careful consideration. This Company's proposal includes the following features: 1. Will be available for students, faculty, and staff members, and their dependents. (In the Urbana Departments.) Our plan has been only for students, staff members, and faculty. 2. Will be available to these people, on the payment of membership fees, on a twelve months' basis, rather than the nine months' basis which our plan has followed. We have hoped to find some method to give twelve months' coverage, but to date had not felt that our Association was ready for this. 3. The cost for the memberships through the North American Company would be the same as the costs under our plan, namely, $3.00 or $5.00 per semester, depending on whether the individual chose the plan with the partial payment of the physician's charges. Proportionate charges would be made for the summer months. 4. The benefits under the North American plan would be increased as follows: (a) Benefits would be paid up to thirty days for each illness. Our plan has limited the beneficiary to twenty-eight days benefit in each semester. (b) $5.00 would be allowed for medicine, dressings, X-ray, ambulance, and other fees. Our plan has allowed only $1.00 for medicine or examinations. (c) The payment to the physician under the $5.00 plan would be the same as we have allowed, namely, $2.00 per day of hospitalization to be paid to the physician. 5. The North American Company proposes that we handle the sale of individual memberships as we have in the past, at the prices indicated above, and that the University then purchase a group policy from the Company at the rates of $2.50 for each $3.00 membership, leaving $.50 per member for our fund here, and $4.50 for each $5.00 membership, leaving $.50 for our fund. The immediate effect of this would be to give the University fund approximately $3,000 each semester, or $6,000 a year, if the membership holds up as it has in the past. These retentions would not be permitted in the case of dependents' memberships, but the number of dependent memberships is not likely to be large at the outset. The proposal is not in final form for action by the Board of Trustees at this meeting, but the Manager of the Mutual Benefit Hospital Fund requests authorization to continue negotiations with the North American Accident Insurance Company. If satisfactory arrangements can be made, and the form of contract is approved by the University Counsel, the Manager recommends that this plan be tried for one year from September, 1940. The sole purpose in presenting this proposal is to render a greater hospital and medical service insurance to students and faculty at no increase in cost. The tentative plan has the approval of the Hospital Fund Board.

On motion of Mr. Mayer, the Manager of the Hospital Fund was authorized to continue negotiations and to enter into a contract for one year, the terms of the contract being subject to the approval of the University Counsel.

ELECTRIC SERVICE AGREEMENT WITH THE ILLINOIS IOWA POWER COMPANY (9) The University has an agreement with the Illinois Iowa Power Company for electric service as needed, which provides that it may be terminated on ninety days notice. The Director of the Physical Plant Department reports that one unit (one boiler and one 3,000 K W turbine) in the new power plant will be in service September I and another unit on October 15. Therefore, on his recommendation I have authorized him to notify the Company that the University will terminate its agreement effective October 15.

This report was received for record.