This year the Group Insurance Trust celebrates its 50th anniversary. Looking back, it’s a story of hard work and remarkable achievements. Whether you’ve been a long-time CalCPA member and can recall many of these events or have joined recently, a quick review of this history reveals the valuable service of CalCPA staff and board volunteers who have helped build this organization. This history also shows how CalCPA membership benefits have grown over the years. Consider these twelve milestones in the history of the GIT.

  1. On December 4, 1959, the California Society of CPAs creates a trust for the maintenance of group insurance programs serving employer members, employees, and dependents. Over the course of the next 38 years, the terms of this trust will be amended and restated several times.
  2. Between 1980 and 1983 two committees administer CalCPA insurance benefits. In 1983 the two committees separate. The Members Insurance Plans Committee is charged with the formation of CAMICO, while the Administrative Committee of the Group Insurance Trust (ACGIT) is given oversight of CalCPA’s health and welfare plans.
  3. In 1981, with healthcare premiums escalating rapidly, the medical plan is put out for bid and moved from Pacific Mutual to Blue Cross. Despite a two-year rate guarantee period, when the plan loses $2 million in the first year Blue Cross requests and is denied an 82 percent premium rate increase. Eventually the Trust and Blue Cross agree on a rate increase of more than 40 percent and the creation of a rate stabilization fund to temper future rate increases.
  4. In 1984 the Trust moves from broker/administrator Rollins Burdick Hunter to Fred S. James. To better serve CalCPA members, Fred S. James opens a San Francisco office to oversee the day-to-day operation of the Trust account.
  5. In 1992, sweeping state legislation eliminates unique, association-sponsored healthcare plans. Solo practitioners, who are not protected under the new law, are particularly vulnerable and in danger of losing coverage. In June 1994, the Trust negotiates with Blue Cross to guarantee that all existing covered firms, including solo practitioners, retain coverage, and CalCPA healthcare plans morph into Blue Cross off-the-shelf small group plans.
  6. At its May 8, 1995 board meeting, the ACGIT reviews two studies it has commissioned from Towers Perrin and Deloitte & Touche. Both recommend that the Trust self-fund its own medical plans. Although conscious of the risk, the committee agrees to go forward. CalCPA, under the leadership of Executive Director Jim Kurtz and President Gale Case, is supportive.
  7. Only a few months later, on September 30, 1995, the Trust files for a Certificate of (MEWA) Compliance and CalCPA’s Government Relation  division work tirelessly to push through enabling legislation. California Department of Insurance Commissioner Chuck Quackenbush advises the Trust to file as a MEWA and Trust staff and counsel undertake the massive task of compiling the MEWA application.
  8. On March 10, 1997, after eighteen months of unrelenting effort by the trustees, staff, government relations division, and consultants, the GIT is awarded a Certificate of (MEWA) Compliance by the California Department of Insurance. The certificate allows the Trust to design plans, set premiums, and operate a healthcare program exclusively for CalCPA member-owned firms.
  9. On April 26, 1997, CalCPA amends and restates the Trust agreement to create a Board of Trustees in accordance with ERISA guidelines. The Board of Trustees approves the final MEWA plan designs, and Trust staff launches marketing efforts.
  10. The first four ProtectPlus copay plans open for business on July 1, 1997. By the end of July, 445 firms have enrolled with a total of 1,122 subscribers. By the end of the calendar year, plan participation has tripled.
  11. Following an arduous application process, on May 16, 2008 the Trust receives the news that it is the first and only MEWA in the nation to be awarded an A.M. Best rating. The Trust receives a B++ rating—a significantly higher rating than expected for any first-time rating applicant, let alone a MEWA.
  12. On June 25, 2009 the Trust celebrates its 50th anniversary and honors those who no longer serve but have contributed so much to the Trust’s success, including former trustees, CalCPA leadership, CalCPA and Trust staff members and consultants.