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1 Labor force, 65 and over, 18,341. Employed, 65 and over, 16,549. Percent, 20.6. Estimated self-supporting population, 80,100.

SCHEDULE E.-Direct payment on 21,583 subscribers over age 65

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1 Figures taken from Rhode Island Blue Cross Book. Enrollment and utilization by age of members, June 1, 1960.

Dr. MULVEY. Among the several reasons given by the Governor in his endorsement of H.R. 4222 are that the bill is administratively feasible, that entitlement is a matter of right, and receipt of the benefits requires neither the humiliation of the means test on the part of the individual nor the cost involved in administering the means test program on the part of State government.

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1 Labor force, 65 and over, 18,341. Employed, 65 and over, 16,549. Percent, 20.6. Estimated self-supporting population, 80,100.

Individual:

SCHEDULE E.-Direct payment on 21,583 subscribers over age 65

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Family:
Over 80.

137, 499

75 to 79.

112, 697

70 to 74..

51,054

65 to 69..

464, 884

Loss.

NOTE.-Loss on 9,452 contracts over age 65.

$74,853

106, 074

99, 327

15, 935

296, 189

1959 total loss on direct payment only. 761,073

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1 Figures taken from Rhode Island Blue Cross Book. Enrollment and utilization by age of members, June 1, 1960.

Dr. MULVEY. Among the several reasons given by the Governor in his endorsement of H.R. 4222 are that the bill is administratively feasible, that entitlement is a matter of right, and receipt of the benefits requires neither the humiliation of the means test on the part of the individual nor the cost involved in administering the means test program on the part of State government.

It provides basic coverage for a balanced program of medical care, designed for all persons 65 and over who are beneficiaries of the OASDI.

The basic problem is one of economics. It is primarily a problem of quality and quantity.

I developed my arguments in support of the Anderson-King bill around two broad aspects: the advantage to the State of Rhode Island which would result from its passage, and (2) the necessity of its passage, so that all our senior citizens may be able to get adequate medical care.

I shall now summarize the points that I have developed in my written statement, as far as the advantages to the State are concerned. Rhode Island has more elderly people, proportionately, than does the average State. We have 10.4 percent of our total population composed of 65 years of age and over, as against the national average of 9.2 percent.

Rhode Island must spend more per inhabitant to help all its needy people than does the average State.

Enactment of S. 909-H.R. 4222 is especially important, because elderly beneficiaries of OASDI who might have to seek help from OAA because of need for medical care costs would not have to resort to this. Nor would their families, who themselves would be reduced to need because of helping parents over the years with medical care expenditures, have to seek help from public assistance.

Rhode Island leads the Nation in the extent to which its aged receive OASDI benefits monthly. About 75 out of every 100 aged Rhode Islanders receive OASDI benefits, compared to 61.5 of every hundred in the Nation.

Rhode Island, as a result, has a low recipient rate of OAA. But in this group of OAA, which is composed at present of 6,600, 43 percent receive OASDI benefits.

The expenditures last year alone on medical care for this group of OAA-OASDI beneficiaries amounted to $900,000. While the current provisions of H.R. 4222 would not eliminate these expenditures in their entirety, passage of this legislation would result in a substantial reduction in costs.

I address myself now to the necessity of enactment of S. 909-H.R. 4222, so that all our senior citizens can get adequate medical care. The history and experience of Rhode Island Blue Cross to extend its health insurance plan to all self-supporting senior citizens provide data which reveal that the voluntary health insurance plan cannot provide adequate medical care for all the aged, and cannot be used as a substitute for the social security system for financing health care for the aged.

Rhode Island leads the Nation in the proportion of its elderly who carry voluntary health insurance.

As far as can be determined, 76.8 percent of the total aged population in the State have Blue Cross coverage, and 60 percent have Physician Service coverage. This is a highly significant proportion when we consider that only about 23 percent of the total population in the Nation carry Blue Cross or Blue Shield insurance.

Blue Cross in Rhode Island has made an all-out drive during recent years to get large numbers of individuals over 65 enrolled in their plans, and have succeeded admirably in this respect. Since

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