Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 578]

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1978]

UNIVERSITY OF ILLINOIS

565

Designation of the Division of Services for Crippled Children as the Agency to Administer the Supplemental Security Income Disabled Children's Program, Medical Center

(18) The University of Illinois Division of Services for Crippled Children is a statewide program supported jointly by federal and state funds for the purpose of evaluating and providing care for disabled children. Recently, Public Law 94-566, modifying Section 1615(b) of the Social Security Act, has mandated new and expanded services for seriously disabled children. Under the revised law, financing is provided to states, which must organize and implement a wide array of medical, social, developmental, and rehabilitative services for disabled children. The goal is to minimize continued dependency and encourage self-sufficiency by preparing children to avail themselves of special educational and vocational rehabilitative services. In a letter dated February 17, 1978 (a copy of which is filed with the secretary), Governor Thompson designated the University of Illinois, acting through its Division of Services for Crippled Children, as the agency responsible for the administration of the program in Illinois. The Supplemental Security Income Disabled Children's Program is fully funded by the federal government. Illinois is eligible to receive $1,587,000 for FY 1978. The chancellor at the Medical Center has recommended acceptance of the governor's designation. The vice president for administration concurs. I recommend approval. O n m o t i o n of Mr. Livingston, this r e c o m m e n d a t i o n w a s approved.

Establishment of Self-Insurance Trust Fund for Hospital and Medical Professional Liability

(19) The Risk Management Self-Insurance Program, approved by the board on February 15, 1978, authorized the vice president for administration to negotiate with the First National Bank of Chicago to establish the appropriate trust agreement and related documents to establish a Hospital and Medical Professional Liability Reserve Fund. The fund would be held in trust with the First National Bank for "malpractice and comprehensive patient liability" associated with the University of Illinois medical facilities (as permitted under United States Department of Health, Education, and Welfare Regulations under the Medicare Program). The trust fund must be funded on an actuarially determined basis to meet the federal requirements. The actuarial study performed by Tillinghast, Nelson, & Warren, Inc., of Atlanta has recommended that the fund be funded at $1,121,000 for FY 1977 and $1,312,000 for FY 1978 for a total of $2,433,000. A trust agreement has been negotiated with the First National Bank whereby the bank has agreed to act as trustee. The fee charged by the bank, based on fixed income security investments, is as follows: 1. Basic account charge $ 800 2. Annual valuation charge (on market value of assets) (per $1,000) $ 3 00 .30 percent First million Second million .25 percent 2 50 Third million .20 percent 2 00 Fourth-tenth million .125 percent 1 25 Above tenth million .10 percent 1 00 Fees are charged on a quarterly basis and are based on the average market valuation for the trust account. Assuming the $2,433,000 total, the annual fee would be $7,166. This fee structure is considered appropriate for this account. The expenses of the trustee, are chargeable to the trust fund. The terms of the agreement have been reviewed by the university counsel and the vice president for administration.