Along with the 689,000 persons covered by major medical-expense policies of insurance companies are others who have substantial protection against the catastrophic costs of serious disability. Some hospital, surgical, and medical expense plans provide coverage for the costs of prolonged disability. Other plans have such high maximum benefits that there is little need for major medical expense protection. No effort has been made to estimate the number of people so covered.

39087-53-pt. 52.

GROWTH TREND OF HOSPITAL, SURGICAL, AND MEDICAL EXPENSE PROTECTION

There are few parallels in the annals of insurance or other fields that can match the spectacular growth of voluntary health protection in the United States in recent years. The record is the more notable in view of the pressures for Government-sponsored compulsory plans in the period, and it supplies decisive evidence of what the American people can do on their own initiative and responsibility.

A brief review of the period from the entry of the United States into World War II to the present indicates the extent that the voluntary health protection movement has swept the country. At the end of 1941, for example, there were slightly more than 16 million persons in the entire population with hospitalexpense coverage. By the end of 1952, the number multiplied nearly 6 times to more than 91 million persons with such coverage.

Surgical expense coverage was a newcomer to the health field at the start of World War II, and in 1941 there were fewer than 7 million persons with this protection. At the end of last year, over 73 million Americans were covered against surgical expense in the event of accident or sickness.

Medical-expense coverage, virtually unknown before World War II, now covers nearly 36 million persons. And major medical coverage for the catastrophic expense of serious disability, though new and still in the experimental state, has already made a significant impression on the public.

All major types of insurers and agencies have contributed to this growth record of voluntary health protection. Particularly outstanding has been the role played by insurance companies and the Blue Cross-Blue Shield organizations.

GEOGRAPHICAL DISTRIBUTION OF HOSPITAL, SURGICAL, AND MEDICAL EXPENSE

PROTECTION IN THE UNITED STATES

The regional map of the United States on the opposite page gives a graphic picture of the nationwide ownership of voluntary health-expense protection by the American public.

The proportion of persons with such protection is higher in the Nation's more heavily industrialized areas since this is where the concentration of employed groups occurs. However, the figures also show a substantial and growing coverage in the rural sections of the country as the result of the activities of insurance companies, Blue Cross, and other organizations.

A factor that should be kept in mind with respect to the numbers covered by voluntary health protection is that there are a large number of people for whom this protection is neither necessary nor appropriate. For example, complete medical care is provided by Government for persons in the Armed Forces, those in public institutions, and to some extent, the Nation's veterans. Also, medical care of the indigent is generally provided by Government at the State or local level.

The map on page 1180 breaks down the United States into four major geographical regions, and shows the number of persons protected against hospital, surgical, and medical expenses compared with the population of each region. A table listing the State-by-State distribution of each form of coverage will be found on page 1181. This table for the first time gives the extent of hospital, surgical, and medical expense protection in the Territories of Alaska and Hawaii.

GROWTH IN NUMBER OF PEOPLE COVERED BY

HOSPITAL, SURGICAL AND MEDICAL EXPENSE PROTECTION

Hospital, surgical, and medical expense coverage by States-Number of people protected, end of 1952

VOLUNTARY PROTECTION AGAINST Loss OF INCOME DUE TO DISABILITY

This is the oldest form of voluntary health protection in the United States, and its steady growth over the years testifies to its inherent vitality and its widespread acceptance.