APPENDIXES1 APPENDIX A RESPONSES ΤΟ SUBCOMMITTEE QUESTIONNAIRES RECEIVED FROM INDIVIDUAL INSURANCE COMPANIES: 1. BANKERS LIFE & CASUALTY CO. 3. FIREMAN'S FUND INSURANCE CO. 1. BANKERS LIFE & CASUALTY Co. Hon. PAT MCNAMARA, BANKERS LIFE & CASUALTY Co., Chairman, Subcommittee on Health of the Elderly, Senate Office Building, Washington, D.C. DEAR SENATOR MCNAMARA: Enclosed herewith is table 1-A which we request that you kindly add as an addendum to our submission dated April 15, 1964, of material responsive to questions submitted to us by your committee. You will note that the added table segregates the numbers of insured persons having hospital-surgical plans, medical-surgical plans, and hospital indemnity plans. The totals add up to the same number of policyholders as appeared on our original submission. It was our impression that you originally requested figures as to total policyholders of health insurance over age 65 excluding only disability income. This was the basis upon which we supplied the material as originally submitted. With the addition of table 1-A you will have the benefit of the breakdown as above indicated. It should be noted, however, that with the exception of those insured under the GR-706 and P-12, certain scheduled benefits for X-rays, laboratory, etc., were payable whether such expenses were incurred in or out of a hospital on other listed medical-surgical policies. All of the medical-surgical plans contain a surgical schedule, the benefits of which could be assigned to the hospital. Yours very truly, EDWARD J. KELLY, First Vice President. 1 References appear in the several appendixes to certain enclosures and attachments which have been omitted due to limitations of space. These data are on file with the subcommittee and are available for study in the subcommittee offices upon written request. 239 TABLE 1-A NUMBER OF PERSONS AGE 65 AND OVER APPEARING ON TABLE I HAVING HOSPITAL-SURGICAL PLANS NUMBER OF PERSONS ELIMINATED FROM TABLE I HAVING MEDICAL-SURGICAL NUMBER OF PERSONS ELIMINATED FROM TABLE I HAVING HOSPITAL INDEMNITY DEAR SENATOR MCNAMARA: This company is happy to respond with the best available data to the questions submitted to us by the subcommittee. Our personnel has been most appreciative of the assistance of the subcommittee staff members in clarifying problem areas and providing guidance to assure maximum responsiveness. The material, related information, sources, and exhibits with respect to persons aged 65 and over for the last 3 calendar years will be treated in the order of your questionnaire. I. TOTAL POLICYHOLDERS (CLASSIFIED BY GROUP AND INDIVIDUAL) Figures below refer to individual and family group policies written by this company-not true group insurance. Under true group insurance, not a significant part of this company's business, we insure only about 3,000 persons 65 years of age or over. Total policyholders covered under individual, hospital-medical, and surgical policies (estimated): As of Dec. 31, 1961. As of Dec. 31, 1963. 1, 100, 861 1, 121, 982 1, 100, 344 Data providing answers to this question was not readily available from standard company records. We have attempted to use the most accurate techniques applicable to the pertinent information to formulate the above estimates. Our policy P-27 is written exclusively on an individual basis for people age 65 and over so for this policy we have an exact count. Under policies GR-735, GR-739, P-7, P-7A, P-29, 959, 978, and P-86, we assumed no insureds would have reached 65 because the maximum issue ages combined with the maximum duration as of December 31, 1963, would have resulted in few, if any, insureds being 65 or more. The total number of FH-42 and FH-75 policies was only 3,522, too small a number to have substantially affected the results, prompting us to assume no over 65 insured among these policyholders. For policies 706, 709, and 710, we were able to analyze by computer the issues of the first 6 months of 1963 and from the data obtained by such analysis estimate the total number of persons insured under these plans at ages 65 and over. Our estimate for all remaining policies was based on a computer analysis of the age of the applicant for 15 selected plans plus studies of various samples of inforce business made in the past. A. Available data concerning other health insurance coverage held by policyholders This company has no data regarding other health insurance coverage of our policyholders. II. BENEFITS AND PREMIUMS A. Policy forms, benefits, changes B. Monthly premium charge, changes The enclosed binder, "The Modern Answer," contains detailed information on benefits, premiums, and changes on each policy, plus sample policies, for each plan available to persons over 65 during 1961, 1962, 1963. Rate cards indicate rates applicable to those years. Also included are rates which are applicable on policies written since January 1, 1964. Policies issued prior to that date continue at previous rates. C. Number of policyholders for each policy described Attached hereto as table I is our estimate of policyholders for each policy form. Included are those covered by policy forms in exhibit noted above (II-B). Other policies appearing in table I were available to persons over 65 prior to the years requested in this survey. III. EXPERIENCE A. Premiums earned by policy form B. Claims incurred by policy form Present company recordkeeping does not facilitate gathering data on either premiums earned or claims incurred by policy form with respect to insureds over 65. Again, our experience with the policy form issued solely to persons over that age (P-27) does provide total premium and benefit figures as reported to the State insurance department each June 30. (This experience is attached as table II.) IV. EXCLUSIONS AND LIMITATIONS Detailed information contained in the exhibit referred to in question II ("The Modern Answer") specifically covers exclusions, limitations, and waiting periods for all policy forms. V. ADVERTISING Radio and printed advertising material directed specifically at persons over 65 has been bound separately as an enclosed exhibit for convenience. VI. UNDERWRITING A. Initial issuance, impaired risks We do not have and cannot accurately estimate any relative figures on persons rated as impaired risks over 65 in comparison with younger applicants. |