(B) by striking out the second sentence and the last sentence of the subparagraph redesignated as subparagraph (A) by subparagraph (A) of this paragraph; (C) by adding at the end of the subparagraph redesignated as subparagraph (A) by subparagraph (A) of this paragraph the following new subdivision: "(iii) At the close of the fiscal year ending June 30, 1965, and each fiscal year thereafter, the Board and the Secretary of Health, Education, and Welfare shall determine the amount, if any, which, if added to or subtracted from the Federal Hospital Insurance Trust Fund, would place such fund in the same position in which it would have been if service as an employee after December 31, 1936, had been included in the term 'employment' as defined in the Social Security Act and in the Federal Employment Contributions Act. Such determination shall be made no later than June 15 following the close of the fiscal year. If such amount is to be added to the Federal Hospital Insurance Trust Fund the Board shall, within ten days after the determination, certify such amount to the Secretary of the Treasury for transfer from the Retirement Account to the Federal Hospital Insurance Trust Fund; if such amount is to be subtracted from the Federal Hospital Insurance Trust Fund the Secretary of Health, Education, and Welfare shall, within ten days after the determination, certify such amount to the Secretary of the Treasury for transfer from the Federal Hospital Insurance Trust Fund to the Retirement Account. The amount so certified shall further include interest (at the rate determined under subparagraph (B) for the fiscal year under consideration) payable from the close of such fiscal year until the date of certification."; (D) by striking out "subparagraph (B) and (C)" where it appears in the subparagraph redesignated as subparagraph (B) by subparagraph (A) of this paragraph and inserting in lieu thereof "subparagraph (A)"; and (E) by amending the subparagraph redesignated as subparagraph (C) by subparagraph (A) of this paragraph to read as follows: "(C) The Secretary of the Treasury is authorized and directed to transfer to the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, or the Federal Hospital Insurance Trust Fund from the Retirement Account or to the Retirement Account from the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, or the Federal Hospital Insurance Trust Fund, as the case may be, such amounts as, from time to time, may be determined by the Board and the Secretary of Health, Education, and Welfare pursuant to the provisions of subparagraph (A), and certified by the Board or the Secretary of Health, Education, and Welfare for transfer from the Retirement Account or from the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, or the Federal Hospital Insurance Trust Fund." (2) The amendments made by paragraph (1) of this subsection shall be effective January 1, 1965. Such amendments and the amendments made by section 202 (a) shall not be construed to increase or diminish the sums to be transferred, under the provisions of section 5(k) (2) of the Railroad Retirement Act before their amendment by paragraph (1) of this subsection, between the Railroad Retirement Account and the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund. TITLE IV-MISCELLANEOUS PROVISIONS STUDIES AND RECOMMENDATIONS SEC. 401. The Secretary of Health, Education, and Welfare shall carry on studies and develop recommendations to be submitted from time to time to the Congress relating to (1) the adequacy of existing facilities for health care for purposes of the program established by this Act; (2) methods for encouraging the further development of efficient and economical forms of health care which are a constructive alternative to inpatient hospital care; (3) the feasibility of providing additional types of health insurance benefits within the financial resources provided by this Act; and (4) the effects of the deductibles upon beneficiaries, hospitals, and the financing of the program. The CHAIRMAN. Our first witness today is the Honorable Anthony J. Celebrezze, Secretary of Health, Education, and Welfare. Mr. Celebrezze, I believe this is your first appearance before the Committee on Ways and Means, though you have appeared before other committees of the Congress. We want to welcome you to the committee. You may proceed to deliver your statement without interruptions and at the conclusion of your statement there may be some questions by members of the committee. You are recognized, sir. STATEMENT OF HON ANTHONY J. CELEBREZZE, SECRETARY OF HEALTH, EDUCATION, AND WELFARE; ACCOMPANIED BY HON. WILBUR J. COHEN, ASSISTANT SECRETARY OF HEALTH, EDUCATION, AND WELFARE (FOR LEGISLATION), HON. ROBERT M. BALL, COMMISSIONER OF SOCIAL SECURITY ADMINISTRATION; AND HON. ROBERT J. MYERS, CHIEF ACTUARY, SOCIAL SECURITY ADMINISTRATION Mr. CELEBREZZE. Thank you, Mr. Chairman and members of the committee. I have with me Wilbur J. Cohen, who is Assistant Secretary in Charge of Legislation; Robert M. Ball, Commissioner of Social Security; and Robert J. Myers, Chief Actuary of the Social Security Administration. The CHAIRMAN. Mr. Secretary, we appreciate your bringing these gentlemen with you. It wouldn't seem to be a legal hearing on social security matters if they weren't in the room or in some way helping the committee. Mr. CELEBREZZE. I might add, Mr. Chairman, that they are the experts in the field. The CHAIRMAN. They are. Mr. CELEBREZZE. I consider it a privilege to appear before this committee to present the case for those to whom we owe so much-our older Americans. As a nation, we have an obligation to do all we can to enable our older people to enjoy the better standard of life which their contributions, over a lifetime, have made possible. I welcome this opportunity to present the administration's views on one very important way in which that obligation can be met. I appear before you to urge the enactment of hospital insurance for the aged through social security-the plan embodied in H.R. 3920, introduced by Representative Cecil R. King, and in bills introduced by several other distinguished members of this committee. This plan offers a means by which the Nation can promote the security of all older Americans, both the ones of this generation and the ones of generations to come. Over a quarter of a century ago the Congress of the United States established a social security program to help prevent poverty and dependency among our elderly citizens. Four-fifths of all the aged are protected under the program, and nearly 90 percent of those becoming 65 this year will have social security protection. Reliance on charity and public assistance is only a small fraction of what it would be in the absence of the social security program. Modest |