The American Psychological Association (APA) and the American Psychological Association Insurance Trust (The Trust) have announced that they have agreed to restructure their long-standing relationship, and, together with the American Psychological Association Practice Organization (APAPO), enter into a new business arrangement.
This new relationship will enhance the ability of APA and APAPO to provide funding for mission-related advocacy and other projects and, at the same time, enable The Trust to strengthen the stability of its insurance programmes through an expanded marketplace while continuing to offer a premier array of insurance and financial security products and risk-management services to its policyholders.
Under the terms of the new business arrangement, APA will receive a one-time payment from The Trust totalling $6.25 million, which will be paid over the next 24 months. Going forward, The Trust will operate as a programme partner with APAPO and will be the sole authorized and preferred insurance provider for APA and APAPO members under a five-year agreement, for an additional payment totalling $3.75 million.
The majority of these prospective payments - $3.25 million - will be designated to the APAPO budget to support its mission. Taken together these payments from The Trust will provide a critical new revenue stream to APAPO and APA to fund their respective mission-related work, including advocacy for appropriate reimbursement for psychological services, research funding, mental health care access and quality in psychology education.
Over the last two years, APAPO has assumed the responsibility for selecting and managing affinity and business-partner programs for all APA and APAPO members. The APAPO will manage the program partnership with The Trust. The new business relationship between APA, APAPO and The Trust became effective on July 1, 2013.
