COMPREHENSIVE MEMBER STANDBY

By Michael Riskin, Ph.D.
Chairman, Alcor Board of Directors

Hello to both current and prospective Alcor members from your Chairman of the Board and his family, the Alcor management, staff, volunteers, and Board of Directors.

Alcor is pleased to announce a major policy and operational initiative as part of its quest to continue providing the most effective cryonics procedures to its membership. It is called “Comprehensive Member Standby” (CMS). This plan was originally developed during the tenure of Dr. Jerry Lemler, MD (former Alcor CEO and current Board member), when Dr. Lemler and I fleshed out the details of the plan.

During its development in 2003 and 2004 it has undergone many revisions but none that affect the original concept, which is to provide comprehensive standby coverage to US and Canadian based Alcor members (standby response to Canada may be delayed by customs and immigration delays). During the summer of 2003, when it seemed certain that CMS would become a reality, Alcor began setting aside seed funding for comprehensive standby. With more than $100,000.00 already in the Standby Fund Pool, CMS will be immediately available to the membership upon launch. CMS monies are maintained in a separate fund.

CMS has a launch date of January 1, 2005. It is well positioned financially to immediately start fulfilling its purpose: To greatly enhance the stabilization process, which is one of the most critical steps in the cryopreservation procedure.

To introduce this topic, let me briefly review what Alcor does while providing cryonics procedures to its members. Five equally critical steps must be successfully executed to complete a satisfactory cryopreservation:

1) Standby, Stabilization and Transport. Alcor must be ready to deliver the fastest and most effective postmortem procedure currently available under variable circumstances, to members who have been pronounced legally dead. These procedures are designed to prevent further biological deterioration and to provide rapid transport to an Alcor operating room facility. In short, to “prep” the patient as best as is possible for an optimum cryopreservation.

2) Cryoprotection. Subsequent to step one, the next procedure takes place in Alcor’s operating room. An Alcor patient is further prepared for cool down through the introduction of cryoprotectants for long-term maintenance at low temperatures. This is accomplished through the use of specialized surgical procedures and proprietary cryoprotectant perfusates.

3) Cool down. This is the stage in which the patient’s temperature is gradually reduced to liquid nitrogen temperatures (-196°C) so as to be able to successfully maintain long-term, low temperature biostasis.

4) Long-term Maintenance. This is the stage of long-term immersion in liquid nitrogen in which the patient awaits a future time when revival may be possible.

5) Revival. No one yet knows when or if this will be possible.

At this time, the actual procedures for execution of steps 1-4 are in place, in terms of personnel, equipment, processes, facilities, supplies, and outside resources. Alcor continually strives to improve these procedures. Appropriate and reliable funding mechanisms for steps 2-4 are also in place. No one knows at this time how long it will be or what it will take to complete step 5, the ultimate goal. The costs associated with recovery are unknown, but Alcor is building up a substantial “war chest” in that regard with its Patient Care Trust.

All Alcor members are treated equally and have access to the same quality procedures by virtue of their prefunded cryonics arrangements for steps 2-4. The perennial problem, from both a financial and delivery perspective, has been step one, better known as bedside preparation, stabilization, and transport (the “Standby”). These are the procedures that ideally occur immediately after pronouncement of legal death. Often they are also the most problematic. It is this concern that the CMS policy addresses.

Old Standby Policy

Via their minimum-funding contract, each member currently has $3,000 available for expenses related to their Standby and Transport procedure. This has been the case virtually since the inception of the pre-funding policy (which replaced the unworkable policy of pay as you go that led to the catastrophic failure of other cryonics organizations). When this $3,000 rescue funding policy was first created in the early 1980s, it was a sufficient sum to do the job, given the available technical and personnel resources and given the respective costs at that time. Deploying a standby today costs in excess of $15,000 and has been known to cost as much as $40,000.

Some Alcor members may believe that all expenses related to Standby are still covered in their cryonics funding arrangements; but, this is not true. While some members have had virtually no rescue expenses due to unfortunate circumstances (for example, their remains being found after many days following an accident or unattended death), other members have had to cover as much as $35,000 or more when a bedside rescue was initiated and lasted more than a week. These expenses include round-the-clock, at the ready, teams of highly trained personnel, plus the costs associated with shipping, procurement, and use of the equipment and disposables necessary for a successful rescue effort. In addition, the expenses associated with such outside vendor costs such as mortuary support and document procurement and preparation must be covered.

Very few members anticipate the need to relocate or to deploy a team, and fewer still anticipate that need by prefunding their Standby and Transport. But to fund these expenses at the last minute requires an immediate and significant infusion of cash. Some members have accomplished this at the last possible minute by funding with cash or by supplying sufficient credit card authorizations to cover the expense.

For most members, last minute Standby and Transport funding can be very difficult if not impossible at a time of great emotional stress and other financial need. It can also place a tremendous burden of responsibility on the family and friends of the member at the time when the member is most vulnerable, and perhaps no longer capable of personally making standby arrangements. A risk exists that this last minute expense cannot be met, resulting in a less than satisfactory overall cryopreservation procedure.

New Standby Policy

The answer to these impediments has been found in Comprehensive Member Standby. In summary here is how it works:

When the time of need is at hand, every US and Canadian based member will receive our full and complete, best available complement of Standby and Transport capability (standby services in Canada may be subject to delays due to customs and immigration requirements). This includes an around-the-clock standby team to prepare for the case, to provide for patient stabilization upon pronouncement and to transport the patient to the Alcor facility (via ground or commercial air). Under this plan, the member will not have to provide additional funding for Standby and Transport in advance or at time of need.

The cost to each member to implement the CMS policy is a modest $10.00 per month added to each Member’s current billing cycle. I say “modest” because this $10.00 per month gives the member standby coverage worth $35,000 or more that would otherwise have to be paid during a time of need or through pre-funding. For minors (18 – 3 – and under) and full-time students (under 25), the monthly charge is waived. CMS will become effective as of January 1, 2005, and the new charges will appear on your normal billing statement. Members can also pay off CMS through the Lifetime CMS program. Payment options are as follows:

• Lump Sum Payment: $4,000.00
• Three Annual Payments: $1,500.00 each for a total of $4,500.00
• Sixty Monthly Payments: $100.00 per month for a total of $6,000.00

All CMS payments are non-refundable. Unfortunately, we cannot yet apply this new standby program to foreign members. As a result, only US and Canadian based members are required to pay the additional charge at this time. Members outside the continental United States and Canada must still provide independent standby funding exactly as before under the old standby policy.

It is the opinion of many experienced cryonics experts including Alcor management and outside consultants, that a successful execution of Standby and Transport sets the stage for a successful overall cryopreservation. The argument is simple and seems obvious. The quicker a pronounced member is cooled, treated with cell-protecting medications, afforded an effective blood washout for additional metabolic stabilization, and transported to the operating room for cryoprotection, the more effective each cryopreservation will be. In fact, this is considered so critical that it is understood that the very best treatment a pronounced member can obtain starts with a fully staffed bedside rescue at a location close to the Alcor facility. Under the new CMS policy, a terminal member who elects to relocate to a care facility near Alcor, such as a hospice or a temporary home, is entitled to relocation assistance of up to $5,000.00.

Should any existing member believe that they will suffer such an extreme hardship as the result of these additional charges that it would result in his or her inability to continue as an Alcor member, such circumstances may be submitted in writing to Alcor () for consideration of alternative arrangements.

In addition to the CMS charge of $10.00 monthly, we are announcing an increase in the minimum funding requirements for all applicants entering the sign-up process after December 31, 2004. Current applicants must have completed the sign-up process by December 31, 2004, to qualify for grandfathered rates. New applicants (those who applied between October 1st, 2004 and December 31, 2004) will then have until April 30, 2005, to complete the membership application process, or the new minimums will be applied. You will find the details of those changes in the accompanying document that describes the exact nature of CMS and how it will be funded.

Alcor believes that this significant policy change greatly enhances its ability to provide every single member the best possible cryopreservation available. Henceforth, no member needs to worry about whether they can afford a fully-funded Standby and Transport. It is now part of their membership package. We await your comments, support, and full participation.

Michael Riskin
Chairman of the Board
Alcor Life Extension Foundation

COMPREHENSIVE MEMBER STANDBY POLICY

Consistent with the Alcor mission statement and belief that delivering the best available care includes a quality standby and transport, it has been decided by the Alcor Board of Directors that:

1) Alcor will offer CMS to all members starting January 1, 2005, subject to the terms and conditions described herein. Standby and Transport is defined to include all rescue activities up through the time the legally pronounced member is delivered to the Alcor operating room for cryoprotection. This will be officially known as CMS.

2) A separate general ledger fund account has been established for CMS distributions. This fund account is credited with all CMS revenues as described herein and from which all CMS expenses shall be paid. All disbursements from this fund will require the approval and signature of two authorized persons from a group that includes the CEO, the Vice President, the Technical Operations Director, and the Chairman of the Board. This fund will not be used for any purpose other than for CMS. If this fund is ever reasonably determined by the Board of Directors to be in excess of what is prudently required for future anticipated Standby and Transport expenses, additional CMS revenue will be divided equally between the Patient Care Trust and the General Fund.

3) Effective January 1, 2005, new applicants will require higher funding minimums of $80,000 for a neuro procedure and $150,000 for a whole-body procedure. Existing member funding minimums will be grandfathered at their current rates. Current applicants must have completed the sign-up process by December 31, 2004, to qualify for grandfathered rates. New applicants (those who applied between October 1st, 2004 and December 31, 2004) will then have until April 30, 2005, to complete the membership application process, or the new minimums will be applied.

4) New cryopreservation funding distribution payments will be implemented to support CMS. Distributions to the CMS fund pool, Patient Care Trust, and set asides for cryoprotection, cool down, and long-term transfer expenses will be grandfathered to all members as follows:

• $35,000
  $3,000 to the CMS fund pool
  $10,000 to the Patient Care Trust
  $22,000 to cryoprotection, cool down, and long-term transfer expenses
  
  
• $41,000
  $5,000 to the CMS fund pool
  $10,000 to the Patient Care Trust
  $26,000 to cryoprotection, cool down, and long-term transfer expenses
  
  
• $50,000
  $5,000 to the CMS fund pool
  $15,000 to the Patient Care Trust
  $30,000 to cryoprotection, cool down, and long-term transfer expenses
  
  
• $80,000 – New funding minimum for neuro procedure
  $15,000 to the CMS fund pool
  $25,000 to the Patient Care Trust
  $40,000 to cryoprotection, cool down, and long-term transfer expenses
  
  
• $100,000
  $10,000 to the CMS fund pool
  $40,000 to the Patient Care Trust
  $50,000 to cryoprotection, cool down, and long-term transfer expenses
  
  
• $120,000
  $10,000 to the CMS fund pool
  $60,000 to the Patient Care Trust
  $50,000 to cryoprotection, cool down, and long-term transfer expenses
  
  
• $150,000 – New funding minimum for whole-body procedure
  $15,000 to the CMS fund pool
  $65,000 to the Patient Care Trust
  $70,000 to cryoprotection, cool down, and long-term transfer expenses

5) Effective January 1, 2005, there will be a monthly CMS pool charge per member of $10.00 per month in addition to the normal membership dues. This separate fee also applies to everyone who has paid for or been granted life membership as no one, regardless of status, is exempt from standby expenses. This CMS pool increase will be placed directly into the CMS fund pool. The charge shall be waived for full time students under 25, and minors (18 and younger). This charge may be waived in part or in whole, with approval from two of the following Alcor officials: Chief Executive Officer, Vice President, Technical Operations Director, and Chairman of the Board.

6) Members are encouraged to make additional optional funding provisions for standby expenses and to make directed donations to the CMS pool.

7) Any member not already residing in the greater Phoenix, Arizona area, and who is diagnosed as being terminally ill with a prognosis of 90 days or less, and who relocates to a residence or terminal care facility in the greater Phoenix, Arizona area, will be entitled to a one time $5,000 expense relocation reimbursement, from the CMS fund pool, payable to the member or the member's legal representative. A different geographical location may be chosen by the Board at any time for the purposes of this relocation reimbursement.

8) All new members are subject to a waiting period of 180 days before CMS benefits starting from the date signup arrangements are completed. New members are encouraged to make temporary Standby and Transport financial arrangements of at least $40,000 during this 180-day waiting period.

9) If a member is declared terminal within the 7-day standby period or dies during an elective standby, it will automatically be converted to a standard standby.

10) The annual charges, minimum funding structure and allocations to finance CMS are subject to change by the Board at any time. It is understood that it is the Board’s intention to maintain the grandfathered rates as long as possible.

11) CMS terms and conditions apply only to members residing in the continental United States and Canada (standby services in Canada may be subject to delays due to customs and immigration requirements).

12) This CMS description incorporates the accompanying terms and conditions of initiating and executing standby protocols as described under “Types of Standby”.

13) Two persons from among the Chief Executive Officer, Vice President, Technical Operations Director, and Chairman of the Board are required to initiate a standby under CMS, and are regarded as the final authority therein.

TYPES OF STANDBY

Level One

Full Standard Standby: It is determined that the member is at high risk of legal death in an immediate or short term time frame (within seven days). A fully equipped team, according to the standards of care existing at the time, will be deployed to the member’s location at the full expense of the CMS fund pool.

Level Two

Intermediate Level Standby: It is determined that the member is at medium risk of legal death in an immediate or short-term time frame (within seven days) and will benefit from a reduced degree of on-site or remote monitoring, consultation, and preparation. This CMS expense will be paid out of the CMS fund pool. Should the member so desire, he or she may upgrade the standby level by pre-funding deployment up to Level One.

Level Three

Elective Standby: The member does not qualify for Level One or Two Standby and Transport coverage and wishes to have a self-funded standby. The member will pay for this standby, as it is prudently available, at a price to be quoted depending on the level of support requested. Members who choose Elective Standby must do so prior to being admitted to a hospital for elective or low-risk surgery.

This page updated April 11, 2005