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FPCD-80-45 1 (1980-05-01)

handle is hein.gao/gaobabaos0001 and id is 1 raw text is: RELEASED


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BY THE COMPTROLLER GENERAL

Report To The Chairman,

Committee on Veterans'Affairs,

United States House Of Representatives

OF THE UN TED STATES


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Servicemen's Group Life Insurance Program

In The Ready Reserve

A large number of reservists in the Service-
men's Group Life Insurance Program are re-
ceiving free insurance coverage at the expense
of other members because the law has no pro-
vision to cancel coverage for members who do
not pay their premiums. Although the program
is financially sound, some of the services are
not forwarding premiums to the Veterans
Administration for members who are not
making payments as they are legally required
to do. Also, some of the services need to im-
prove their billing and collection systems. The
services and the Veterans Administration have
had continuous problems determining the
eligibility of some Ready Reservists for the
program.
Because inflation has eroded the value of in-
surance coverage, GAO believes that the Vet-
erans Administration should study the pos-
sibility of increasing insurance benefits and
make any necessary recommendations to the
Congress.
This report recommends that the Congress
amend the Veterans Insurance Act to create
a more clearly defined and equitable program.
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FPCD-80-45
MAY 1, 1980

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