Repository: UIHistories Project: Board of Trustees Minutes - 1954 [PAGE 782]

EXTRACTED TEXT FROM PAGE:

1953]

UNIVERSITY OF ILLINOIS

779

I concur and request authority for the Comptroller or the Secretary of the Board to execute the necessary agreements.

On motion of Mr. Nickell, this plan was approved and authority was given as recommended.

HOSPITAL-MEDICAL-SURGICAL INSURANCE FOR STUDENTS A N D STAFF (39) Bids have been received for the student and staff hospital and medical insurance program for 1953-1954 with the right reserved by the University to renew such insurance annually thereafter upon mutual agreement between the University and the insurance company. The student program provides essentially the same benefits as in prior years except that the daily hospital room and board allowance was increased from $6.50 to $7.50, surgical benefits were decreased to the standard surgical schedule with maximum allowance of $150.00, and the number of days coverage per semester was reduced from 28 days to 21 days. Staff benefits were modified by increasing the daily hospital room and board allowance from $6.50 to $7.50, incidental hospital expense allowance from $32.50 to $75.00 per hospital admission, surgical benefits decreased to the standard $150.00 surgical schedule, and the length of hospital confinement for any one admission was decreased from 28 days to 21 days. All changes were made to adjust the present program to needs as indicated by experience and are recommended by the University Committee on Insurance. Bids were also received as an alternate on the present benefits under the staff plan, but they are not recommended for consideration by the Insurance Comnjittee. T h e lowest over-all cost to the University would result from awarding of a contract to the Continental Casualty Company represented by George B. Franks of Champaign, present carrier and agent respectively of the two plans, rather than awarding separate contracts for the student and staff plans since the lowest bidder on the staff insurance will not accept a contract for the staff insurance alone. It is apparent that most companies are in a better position to bid on the total program rather than on the two plans separately and that accepting the company offering the lowest total cost for the two plans represents the best buy for the University. It is nevertheless desirable to have each plan financially independent of the other. This can be accomplished by adjusting the amount charged to the students and staff so that the proper portion of the claim and administrative cost of the staff program is borne by that group. These bids have been reviewed by the University Committee on Insurance and by the Comptroller. It is recommended that a contract for both the student and staff coverage be awarded to Continental Casualty Company represented by George B. Franks, Champaign, lowest bidder for both programs at $293,482, as per Board of Trustees policy on insurance, and that charges to students and staff for this insurance be for the following amounts (present rates are shown in parentheses) : Students Per Semester Per Year Student only $ 5 00 (J 5 00) #15 00 (#15 00) Student and family 13 00 (13 00) 39 00 (39 00) Faculty-Staff Employee only 25 00 (?i6 20) Employee and one dependent 50 00 (34 80) Employee and two or more dependents 62 00 (45 00) On the basis of these rates, both plans should operate on a self-sustaining basis. The excess over the cost of the coverage would be used by the University to defray the administrative costs of the two programs. A schedule of all bids taken was presented at the meeting, and a copy has been filed with the Secretary of the Board for record.

On motion of Mr. Megran, this contract was awarded to the Continental Casualty Company, George B. Franks, Champaign, Illinois, representative, as recommended.