employers and insurers in the United States and Canada-Continued

(Whereupon, at 12 noon, the hearing was adjourned.)

39087-54---pt. 7---8

HEALTH INQUIRY (VOLUNTARY HEALTH INSURANCE)

TUESDAY, JANUARY 26, 1954

HOUSE OF REPRESENTATIVES,

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, D. C.

The committee met at 10 a. m. in room 1334, New House Office Building, pursuant to adjournment, Hon. Charles A. Wolverton (chairman) presiding.

The CHAIRMAN. The committee will come to order.

I would like to make a brief statement at the opening of our hearings today for the purpose of announcing that hearings will start next Wednesday, February 3, on H. R. 7341, the first of a series of bills which I have introduced to carry out the program on the Nation's health outlined in the President's message of January 18. Mrs. Oveta Culp Hobby, Secretary of the Department of Health, Education, and Welfare, will be the first witness.

This bill H. R. 7341 is an amendment to the hospital survey and construction provisions of the Public Health Services Act to provide matching grants by the Federal Government to State programs for the construction of facilities to take care of the chronically ill, either through special hospitals, supervised nursing and convalescent homes, or rehabilitation facilities for the disabled." It also provides for aid to the construction of nonprofit diagnostic or treatment centers for ambulatory patients, so that greater help is given in getting at these diseases at their start.

In setting down these hearings on specific legislation looking toward the alleviation of some of the great burden of long-term illness, the broad health inquiry which was initiated by the committee last October 1, has produced much valuable testimony that will be helpful in formulating a legislative program to make effective the President's recommendations. A heavy legislative calendar already faces this short session of the Congress. It is therefore mandatory that our committee proceed as quickly as possible to consideration of legislation along the lines of the President's message for the Nation's health, so that appropriate legislation may be presented to the House at the earliest moment.

Our health inquiry has been most stimulating and most informing as it has developed testimony first in the field of the causes, control, and treatment of long-term illness, and second in ways and means which are available to our people for protecting themselves against the heavy cost of such illness. We have directed our consideration especially to these catastrophic diseases, their economic cost to the Nation, and an individual's ability to meet medical bills. The committee, of course, does not presume to pass upon the medical or scientific

merit of any particular therapy. This has not been the objective of the committee. The subject of what is or is not proper treatment from a therapeutic standpoint is a matter for those trained in medicine to determine. Thus, the consideration of our committee has been directed to determine appropriate ways and means of assisting our citizens in meeting the burdensome cost of medical and hospital treatment.

Many individuals and associations have indicated their interest in these hearings by submitting statements for the record. Still others have requested to be heard. The latter, who may have constructive suggestions to offer, are invited to submit a written statement at an early date in order that the committee may have the benefit of their thoughts. Insofar as time and space limitations permit, these statements will be reviewed as to their bearing upon the subject of the study, for inclusion in the record.

STATEMENT OF GERHARD HIRSCHFELD, DIRECTOR, RESEARCH COUNCIL FOR ECONOMIC SECURITY, CHICAGO, ILL.

The CHAIRMAN. Our first witness today is Mr. Gerhard Hirschfeld. Through him we are privileged to hear the work of the Research Council for Economic Security, Chicago, Ill., an organization formed in 1945 to study the various aspects of social and economic security and to stimulate interest and generate active participation in this broad area. The organization was founded in response to a need felt by business and community leaders for more factual information on matters relating to the problem of economic and social security.

In 1951 the council initiated a nationwide study of prolonged nonoccupational illness among employed persons. Today, we are to hear about some of the findings of this study from Mr. Gerhard Hirschfeld, the director of the council, and from Mr. Leon Werch, director of research.

We are very glad to have you gentlemen with us today. I agree with Mr. Hirschfeld in believing that prolonged illnesses are not only a serious problem for the individual concerned, but they become a most serious problem for the employer, for the community, and for the Nation. I understand that your studies indicate that some of the long-term illnesses could be avoided altogether or reduced in severity if preventive measures were used or prompt treatment given.

I hope that you will discuss this point. Also, in presenting your testimony I hope you will feel free to draw upon the findings of the many other studies that your organization has made.

You may proceed, Mr. Hirschfeld.

Mr. HIRSCHFELD. Thank you, Mr. Chairman. Mr. Chairman and gentlemen of the committee. My name is Gerhard Hirschfeld. I am director of the Research Council for Economic Security, Chicago, Ill. It is a real pleasure to have this opportunity to assist this committee in its inquiry into the economic aspects of illness.

I believe that we in the council can make our greatest contribution to your work by giving you some of the highlights of our nationwide survey of prolonged absences due to nonoccupational disability among employed persons. We define "prolonged absence”—and I shall explain why later-as an absence of more than 4 consecutive weeks. For the special use of this committee, we have assembled information,

derived from this survey, relating to a group of some 3,000 prolonged absences, by which I mean in excess of 4 consecutive weeks, due to nonoccupational disability. Mr. Leon Werch, our research director, will present the details on this information. Before he does that, I should like to tell you what the research council is and what we hope to achieve through our survey. At the same time, I should like to impart to you a bit of the perspective in which we view our work on prolonged illness.

The research council was established in May 1945 as a nonprofit educational and research organization. It was founded in response to a need felt by business and community leaders for more factual information on matters relating to the problem of economic and social security. Our objective is to conduct impartial research in unexplored areas which have implications for the economic security of the individual, and to look into those areas in which information is available but is insufficient. There are now some 500 companies, industrial foundations, and other organizations supporting our work on the basis of voluntary subscription or grant that the council's position as an impartial research organization is attested to by the cooperation we receive from both management and labor, from nonprofit health plans and commercial insurance companies, and from many other segments of our economic life.

Perhaps I should explain briefly, Mr. Chairman, what we mean by economic security. By economic security, we mean the ability on the part of the individual to deal, from his own resources, with such problems as unemployment, disability, premature death of the breadwinner, and old age. Economic insecurity of the individual on a broad scale becomes a problem of social security for the community. It is because of the realization that economic insecurity creates the social security problem that we have named our organization the Research Council for Economic Security.

Working under these definitions of social and economic security, we have produced nearly 100 publications in 1945. As an impartial research organization, we do not recommend policy in these publications, preferring to leave conclusions to others. Rather, we compile and make available data that might contribute to sound decisions, by which I mean diseases based upon comprehensive factual information affecting vital aspects of our national life. We have especially tried to seek the common threat that runs through the various hazards-such as unemployment, disability, and old age-that confront the citizens of our country. We believe this common threat to be the insecurity of the individual.

This belief that the various hazards I have mentioned have a common denominator has shaped the character of our research program. Although, as you will see, we have not shied away from looking at specifics, we have attempted to examine the various facets of social security as part of a broad problem confronting individuals in our society. This concern with the broad problem of insecurity that confronts every American, potentially or actually, impels us, as researchers, to look at each problem in its totality and not at narrow segments that might suggest some special interest. We examine each problem dispassionately, and we make our findings available to everyone who is interested.