University of Virginia Library

You will recall that before you left for your trip around the
world I mentioned that the Committee on Contractual Relations was
considering a new type of insurance provided by the Teachers Insurance
and Annuity Association.

Very briefly, this program would be added to the present Blue
Cross-Blue Shield coverage. There would be a $100 amount which the
individual would have to pay, similar to that provided in automobile
collision policies, after which the major medical insurance would pay
80% of all costs up to $15,000 per illness, with the subscriber paying
the other 20%. The sharing of cost is deliberate in the program to
prevent excessive charges.

Should the Board be willing to pay one-half the cost, an individual
faculty member, unmarried, would have to pay 82¢ per month, a married
faculty member, with or without children, would pay $2.12 per month or
roughly $25 a year.

The cost to the University, should all faculty members and
administrators of grade 8 or above participate, (the same group
covered by our group insurance program) would amount to $8,820 per year.

I should like to recommend very strongly that the Board underwrite
one-half the cost of this program. Should the Board approve, it
would still require participation by 75% of those eligible.