Page images
PDF
EPUB

Here are the answers, in corresponding numerical order, to the questions posed in your letter.

(1) Total number of our retired employees is 1,534; of those, 1,481 are over 65 years of age.

(2) Of our retired employees, 1,378 or 89.8 percent are covered by the above medical care protection.

(3) Protection is provided by voluntary participation in the above insured plan.

(4) The proposed social security benefits would be substantially a duplication of our coverage excepting nursing home services not under control of a hospital and home health services.

(5) Limited coverage was first provided for retired employees in 1953; it was expanded in 1957 to the same level of benefits as provided for active employees; it was again expanded in May 1960, with the addition of major medical expense coverage.

UNION ELECTRIC CO.

(1) We have 637 retired employees, of whom 561 are over 65 years of age. (2) All 637 retired employees are covered by group hospital, surgical, and' medical expense insurance. The attached handbook sheets F-1 to F-19 give the details of this coverage.

(3) This protection is provided under an insured plan and the premiums for retired employees are paid by the company. If retired employees want similar coverage for their dependents, they pay the premium for dependent coverage.

(4) Three of our retired employees covered by our medical care program retired before social security became effective and, presumably, they would not be eligible to receive medical care under the social security program. The remaining 634 retired employees would be eligible for social security medical benefits which would be in duplication of the benefits provided under the company program. About half of our retired employees carry the optional medical protection for their dependents; dependents for the remaining half do not receive benefits under the company program and, presumably, would be eligible for social security medical benefits.

(5) The trend of increasing coverage for retired employees is shown briefly by the following:

January 1, 1944: The Blue Cross group plan (primarily, hospitalization) was made available to retired employees. It was paid for by the retired employees. July 1, 1953: The cost of Blue Cross coverage for retired employees was assumed by the company.

May 1, 1955: The Blue Shield group plan (covering medical and surgical expense) was made available to retired employees. It was paid for by the retired employees.

October 1, 1957: Our present group hospital, surgical, and medical expense insurance became effective for all retired employees. Premiums on this coverage are paid by the company.

This coverage, although not identical with the previous Blue Cross and Blue Shield coverage, compares favorably with it.

In addition to the foregoing coverage for retired employees, the company has, since 1915, had district doctors who are under contract to provide employees and retired employees and their wives and children under 18 years of age with free medical service. This covers ordinary medical attention, of the type that can be rendered by the district physician at his office, or, if necessary, at the home of the employee. This service does not include surgery and is subject to a number of other limitations.

UNITED STATES STEEL CORP.

(1) The number of retired employees and where the information is available, the number of those over 65.

Reply: The number of retired employees on the pension rolls as of June 30, 1961, is approximately 38,000, approximately 90 percent of whom are over age 65. (2) The number of percentage of retired employees who are covered by medical care protection.

Reply: Unfortunately, we are unable to give a precise number in answer to this question. Virtually all nonmanagement employees are protected by Blue Cross and Blue Shield insurance during active employment except for those groups covered by other welfare funds such as those negotiated with various

unions representing groups like mine workers, railroad employees, etc. Those having Blue Cross-Blue Shield protection while active are given the opportunity to convert to individual policies upon retirement. These retired employees pay premiums directly to Blue Cross-Blue Shield and, therefore, there is no record of the number who have continued hospital and surgical insurance after retirement. Such pensioners have recently been informed that if they so wish deductions will be made from the pension check for Blue Cross and Blue Shield hospital and surgical premiums and those retired employees who had previously declined coverage are being given another opportunity to enroll. See reply to question 5 in regard to management employees.

(3) The method by which protection is provided, that is, by voluntary participation by the retirees in a company program, by protection furnished by the company, by private action, etc.

Reply: Protection is available to retired nonmanagement employees at their sole option.

(4) To what extent would the present health care protection coverage of the retired employees be duplicated by medical care under social security as presently proposed.

Reply H.R. 4222 provides inpatient hospital services, skilled nursing home services, home health services, and outpatient hospital diagnostic services. The health care protection now available to our retired nonmanagement employees would be duplicated in the area of inpatient hospital services and to some extent by the outpatient hospital diagnostic services. In addition, these retired employees presently have available certain health care not provided in H.R. 4222. (5) The trend of increasing coverage of retired employees, that is, the progress that has been made in your company in offering health care benefits to retirees.

Reply: The trend in United States Steel Corp. has been to increase the hospital and surgical insurance coverage available to retired employees. As shown in reply to question 2, coverage is now available to virtually all nonmanagement employees. The following is a summary of the progress that has been made regarding hospital and surgical coverage for our retired employees:

Prior to March 1, 1950, no coverage was made available to retired employees. Beginning in 1950, hospital coverage and somewhat later surgical coverage was made available by various local Blue Cross-Blue Shield plans to all then retired employees, including management and nonmanagement and to each nonmanagement employee who retired after that time from groups covered while active. Except in a few isolated instances, the premiums for such Blue Cross and Blue Shield coverage are predicated on community experience rather than the experience of only the aged group, thus giving these retired employees coverage at a favorable rate. Currently these same retired employees now on the pension rolls are being granted another opportunity to be covered by the Blue plans even though they may have chosen not to be covered at the time of their retirement. Heretofore retired employees who elcted to continue hospital and surgical coverage paid premiums each quarter directly to the Blue plans. Currently, however, if future retirees or those now on the pension rolls so wish, the Blue Cross and Blue Shield premiums for hospital and surgical coverage will be deducted from their pension checks.

As indicated above, management employees who had retired prior to March 1, 1950, currently have hospital and surgical benefits available through the Blue plans. With certain exceptions, management employees who retired subsequent to March 1, 1950, currently are not covered.

(NAME OF COMPANY WITHHELD ON REQUEST)

(1) A total of 2,482 former employees are receiving benefits from the corporate pension plan or predecessor plans. Of this number, 191 are receiving disability allowances and all of this group is under 65 years of age. An additional 90 employees are receiving early retirement benefits and, therefore, are under 65 years of age. In other words, 2,201 of the retired employees are 65 years of age or more.

(2) Exact figures are not available as to the number of retired employees who left the company prior to January 1, 1960, who have medical care protection. It is estimated, however, that 90 percent of our retirees prior to that date were able to continue medical care protection after retirement, as a result of provisions for conversion of the active employee program to a retiree program. Since Jan

uary 1, 1960, all retirees have been able to continue medical care protection after their retirement date.

(3) Medical care protection provided to current retirees is of two types:

(a) Conversion of the basic hospital-surgical-medical plan available to active employees on an employee-pay basis. This plan may be Blue CrossBlue Shield or any one of several insured programs. In all cases, the protection is continued without break in benefit and, in many cases, at a considerably lower cost than it would be available to retirees who had not been employees.

(b) The second type is a comprehensive major medical program available to all retirees which provides the retired employee and his spouse with $3,000 lifetime coverage each. This provides outpatient benefits including reimbursement for pharmaceutical bills, doctor and nurse visits in the home, etc., in addition to inpatient protection, and the employee contributes toward the cost of this benefit. This is an insured program.

(4) The proposed medical care under social security would appear to duplicate many of the basic benefits already available to our retired employees.

(5) Although some type of health care benefits have always been available to retirees, the type of benefits in effect today are superior to anything that has been offered in the past. This program in its present form has been installed in the last 2 or 3 years.

I want to express my thanks to the companies which have cooperated in this project by answering the questions which I posed. I believe that they have done a real service in making clearer the extent to which industry has made provision for financing health care for retired workers.

Mr. CURTIS. One other request.

Unsolicited, I received seven telegrams from doctors in Palo Alto, Calif., expressing their views on the legislation before us, and in particular because they felt that possibly Dr. Philip Lee in his testimony would not be reflecting accurately their viewpoint and I wanted to have these in the record.

The CHAIRMAN. Without objection, the telegrams will be included in the record.

(Telegrams referred to follow :)

Hon. THOMAS B. CURTIS,
House of Representatives,
House Office Building,

Washington, D.C.:

PALO ALTO, CALIF., August 2, 1961.

I oppose H.R. 4222 and agree with position of California Medical Association on this bill. I believe Dr. Philip Lee represents minority view among the 91 doctors in the Palo Alto Medical Clinic.

EDWARD LISTON, M.D., Executive Head Palo Alto Medical Clinic.

PALO ALTO, CALIF., August 3, 1961.

Hon. THOMAS B. CURTIS,
House of Representatives,

Washington, D.C.:

Aware that Dr. Philip Lee, our associate in Palo Alto Medical Clinic testified in favor of H.R. 4222. We believe committee should know his opinion that medical care for aged can be best provided under social security act not shared by majority of his partners or other physicians in community. Until Kerr-Mills bill thoroughly tested we sincerely believe further legislation premature.

WILLIAM H. CLARK, M.D.,
SIDNEY MITCHELL, M.D.,

Palo Alto Medical Clinic.

PALO ALTO, CALIF., August 3, 1961.

Hon. THOMAS B. CURTIS,

Member of Congress,

Washington, D.C.:

Opinions in Dr. Philip Lee's testimony on H.R. 4222 not sared by associates or majority of physicians in California. Believe that present Kerr-Mills bill can be implemented to solve problem on medical care for the aged.

B. J. SPENCE, Jr., M.D.,
Palo Alto Medical Clinic.

PALO ALTO, CALIF., August 3, 1961.

Hon. THOMAS B. CURTIS,
House Office Building,
Washington, D.C.:

Be assured large majority Santa Clara County's 800 physicians favor trial of Kerr-Mills legislation. Includes Palo Alto. Most informed physicians here oppose H.R. 4222.

C. L. BOICE, M.D.,

Hon. THOMAS B. CURTIS,
Washington, D.C.:

PALO ALTO, CALIF., August 3, 1961.

The practicing physicians of the Palo Alto area do not support the KingAnderson bill or agree with the philosophy expressed by Dr. Philip Lee in testimony before the House Ways and Means Committee. Have been unable to find on extensive polling a physician in the actual practice of medicine other than the Lees who does not feel that the Kerr-Mills action should be implemented and allowed to prove its validity before other legislation is enacted.

We believe a means test is mandatory. The Government should limit its charities to those demonstrating need. Insurance implies that the recipient of benefits contributes to the reserve from which the benefits are paid. The social security arrangements are not insurance in the context.

Respectfully,

RICHARD P. JOBE, M.D.
HARRY G. WHELAN, M.D.

PALO ALTO, CALIF., August 3, 1961.

Hon. THOMAS B. CURTIS,
Member of Congress,

Washington, D.C.:

Wish to express opposition to H.R. 4222. This bill provides coverage for many who do not need the protection but fails to provide for a segment of the elderly population who cannot qualify under the provisions of the measure. I favor the provisions incorporated in the Kerr-Mills bill because this provides protection for those who need it.

CARL L. BIORN, M.D.

Palo Alto Medical Clinic.

PALO ALTO, CALIF., August 2, 1961.

Hon. THOMAS B. CURTIS,
House of Representatives,

Washington, D.C.

SIR: I support medical care for the aged via existing legislation as outlined by Dr. Warren Bostick, president of the California Medical Associates. I emphatically oppose the social security approach of H.R. 4222 as advocated by Dr. P. Lee and a fraction group from this area.

Respectfully.

BURL DAVIS, M.D.

The CHAIRMAN. Mrs. Hymes, will you identify yourself for the record by giving us your name, address, and capacity in which you appear?

STATEMENT OF MRS. CHARLES HYMES, NATIONAL PRESIDENT, NATIONAL COUNCIL OF JEWISH WOMEN, REPRESENTING ALSO MRS. KAL EISENBUD, VICE PRESIDENT, NATIONAL COUNCIL OF JEWISH WOMEN (BROOKLYN SECTION)

Mrs. HYMES. I am Mrs. Charles Hymes. My home is in Minneapolis, Minn. I represent the National Council of Jewish Women of which I am the national president.

The CHAIRMAN. All right, Mrs. Hymes, you are recognized. If you can complete your statement in the time that we have allotted to you, we would appreciate it.

Mrs. HYMES. I will try to. I am combining my statement with that of Mrs. Kal Eisenbud, one of our vice presidents of one of our sections, so that will represent a statement from both of us.

I appreciate the opportunity to state before the committee the views of this organization of 123,000 women belonging to 329 affiliated units throughout the country.

A major concern in our program in the past decade has been the problem of America's growing numbers of senior citizens. We have studied these problems intensively in our communities and have taken action in support of legislation needed to help bring security and dignity to our aging fellow citizens.

Most significantly, we have been serving the elderly across the Nation through sponsorship of some 200 service projects, including recreation centers, sheltered workshops, friendly visiting, meals on wheels, employment solicitation, and occupational and recreational service to elderly persons in institutions.

Discussion of the problems of family relations with the elderly in recent study institutes held by council sections in communities across the country pointed up as a key problem the prevalent fear of illness among older people and especially their anxiety about meeting large medical bills in case of serious illness.

Following through on these reports, the National Council of Jewish Women did a survey, which has just been concluded, of medical costs among the members of council golden age recreation centers and participants in other council-sponsored programs for the aging in 200 communities. A questionnaire (copy attached) was distributed among these groups of elderly men and women, which sought the following information:

In the past 2 years approximately how much did these elderly. people spend for medical or surgical doctor bills, for hospitalization, for drugs, for nurses, or for other costs such as appliances? What was the sources of the funds used for these medical needs: insurance, current income, savings, contributions, or loans? Were they in debt because of medical expenses? We also asked the members of our senior citizen clubs whether they are in favor of medical care insurance under social security, and, if not, what plan do they favor.

« PreviousContinue »