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HOSPITAL, NURSING HOME, AND SURGICAL BENEFITS

FOR OASI BENEFICIARIES

1.5. Congreso. House

HEARINGS

BEFORE THE

COMMITTEE ON WAYS AND MEANS.

HOUSE OF REPRESENTATIVES

EIGHTY-SIXTH CONGRESS

FIRST SESSION

ON

H.R. 4700

A BILL TO AMEND THE SOCIAL SECURITY ACT AND THE

INTERNAL REVENUE CODE SO AS TO PROVIDE INSURANCE

AGAINST THE COSTS OF HOSPITAL, NURSING HOME, AND

SURGICAL SERVICE FOR PERSONS ELIGIBLE FOR OLD-AGE

AND SURVIVORS INSURANCE BENEFITS, AND FOR OTHER

PURPOSES

JULY 13, 14, 15, 16, AND 17, 1959

Printed for the use of the Committee on Ways and Means

UNITED STATES

GOVERNMENT PRINTING OFFICE

44432

WASHINGTON : 1959

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WILBUR D, MILLS, Arkansas, Chairman AIME J. FORAND, Rhode Island

RICHARD M. SIMPSON, Pennsylvania CECIL R. KING, California

NOAH M. MASON, Illinois THOMAS J. O'BRIEN, Illinois

JOHN W. BYRNES, Wisconsin HALE BOGGS, Louisiana

HOWARD H. BAKER, Tennessee EUGENE J. KEOGH, New York

THOMAS B. CURTIS, Missouri BURR P, HARRISON, Virginia

VICTOR A KNOX, Michigan FRANK M. KARSTEN, Missouri

JAMES B. UTT, California A. S. HERLONG, JR., Florida

JACKSON E. BETTS, Ohio
FRANK IKARD, Texas

BRUCE ALGER, Texas
THADDEUS M. MACHROWICZ, Michigan ALBERT H. BOSCH, New York
JAMES B. FRAZIER, JR., Tennessee
WILLIAM J. GREEN, JR., Pennsylvania
JOHN C. WATTS, Kentucky
LEE METCALF, Montana

LEO H, IRWIN, Chief Counsel
JOHN M. MARTIN, JR., Assistant Chief Counsel
THOMAS A, MARTIN, Minority Counsel
GERARD M. BRANNON, Professional Staff
JAMES F, DRING, Professional Staf

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Text of H.R. 4700, to amend the Social Security Act and the Internal

Revenue Code so as to provide insurance against the costs of hospital,

nursing home, and surgical service for persons eligible for old-age and

survivors insurance benefits, and for other purposes.

Text of S. 881, to amend title II of the Social Security Act and the Internal

Revenue Code of 1954 to extend the insurance program established by
such title so as to include insurance against the costs of hospital, nursing

home, and surgical care.

Press release dated June 24, 1959, announcing hearings on amending the

Social Security Act to provide insurance for the cost of hospital, nursing

home, and surgical services for persons eligible for old-age and survivors

insurance benefits..

Adams, Albert C., chairman, committee on social security, National Asso-

ciation of Life Underwriters.--

AFL-CIO, Nelson H. Cruikshank, director, department of social security -

American Academy of General Practice, Dr. R. R. Robins...
American Association of Retired Persons:

Andrus, Dr. Ethel Percy, national president, National Retired

Teachers Association --

Davis, Leonard, National Retired Teachers Association.

American Dental Association:

Conway, Bernard J., secretary, council on legislation --

Friedrich, Dr. Rudolph H., secretary, council on dental health.

American Farm Bureau Federation, Keith Wallace..

American Federation of State, County, and Municipal Employees, AFL-

CIO, Gordon E. Brewer, civil service counsel...

American Hospital Association:

Groner, Frank S., member, board of trustees.

Williamson, Kenneth, associate director..

American Life Convention, E. J. Faulkner..

American Medical Association:

Larson, Dr. Leonard W., chairman, board of trustees.

Stetler, Joseph, head of the law division.---

Swartz, Dr. Frederick C., chairman, committee on aging -

American Nurses' Association, Julia C. Thompson.

American Nursing Home Association, George T. Mustin, chairman, legis-

lative information committee.---

American Osteopathic Association, Dr. Charles L. Ballinger.-

American Pharmaceutical Association, Dr. William S. Apple, assistant

secretary -

American Podiatry Association, Dr. Abe Rubin, secretary and editor.

American Public Welfare Association, Wilbur J. Cohen --
American Society of Internal Medicine, Herbert Berger, M.D., F.A.C.P.,

member, legislative committee, and president-elect, New York State

Society of Internal Medicine..

Americans for Democratic Action, Dr. Frank M. Furstenberg-

Andrus, Dr. Ethel Percy, national president, National Retired Teachers

Association and American Association of Retired Persons.--

Apple, Dr. William S., assistant secretary, American Pharmaceutical

Association

Archer, Dr. Vincent W., Medical Society of Virginia.

Azzari, Dr. Renato J., member, board of trustees and past president,

Medical Society of the State of New York.--

Baehr, Dr. George, consultant, Health Insurance Plan for Greater New

Ballinger, Dr. Charles L., American Osteopathic Association.

66

595

39

470

York

485

595

Page
501

248
62

372

172

120
120

491

310

Bee, Dr. Daniel H., chairman, board of trustees, the Medical Society of

the State of Pennsylvania.
Bennett, Hon. John B., a Representative in Congress from the State of

Michigan.
Berger, David, city solicitor, city of Philadelphia, Pa.-
Berger, Herbert, M.D., F.A.C.P., president-elect, New York State Society

of Internal Medicine, member, legislative committee, American Society

i of Internal Medicine

Blue Shield Medical Care Plans, Dr. Donald Stubbs, chairman, board of

directors.

Braun, Dr. Edmund, member, board of directors, Physicians Forum.--

Brewer, Gordon E., civil service counsel, American Federation of State,

County, and Municipal Employees, AFL-CIO.-

Brown, J. Douglas, dean of the faculty and professor of economics, Prince-

ton University-

California Medical Association, Dr. T. Eric Reynolds, president.

Carnahan, Hon. A. S. J., a Representative in Congress from the State of

Missouri.

Chamber of Commerce of the United States:

Marshall, Allen D.

Schlotterbeck, Karl T.

Chase, Henry H., Council of State Chambers of Commerce.

Cohen, Wilbur J., American Public Welfare Association..

College of American Pathologists, Dr. G. B. Hunter, chairman, legislative

committee, and member, board of governors.

Commerce and Industry Association of New York, Mahlon Z. Eubank,

director, social security department.--

Conway, Bernard J., secretary, council on legislation, American Dental

Association.---

Coontz, A. Phillip, president, Iowa Pharmaceutical Association.-

Council of Golden Ring Clubs of Senior Citizens, Adolph Held, president..

Council of State Chambers of Commerce, Henry H. Chase.

Cruikshank, Nelson H., director, department of social security, AFL-CIO.

Davis, Leonard, National Retired Teachers Association and American

Association of Retired Persons.-

Dingell, Hon. John D., a Representative in Congress from the State of

Michigan---

Dixon, Dr. James P., director, Hospital Council of Philadelphia

Dollinger, Hon. Isidore, a Representative in Congress from the State of

New York.

Dover, Floyd K., national president, National Social Security Clubs of

America

Dulski, Hon. Thaddeus J., a Representative in Congress from the State

of New York

Dunaway, Carlyle, general counsel, National Association of Life Under-

writers.

Esselstyn, Dr. C. B., second vice president, Group Health Association of

America..

Eubank, Mahlon Z., director, social security department, Commerce and

Industry Association of New York...

Farbstein, Hon. Leonard, a Representative Congress from the State of

New York.

Faulkner, E. J., Health Insurance Association of America, American Life

Convention, and Life Insurance Association of America -
Fitzpatrick, John, member of administration board, Ford-UAW Pension

Plan, and secretary, steering committee UAW retiree program in metro-

politan Detroit --
Flemming, Hon. Arthur S., Secretary of Health, Education, and Welfare..
Florida Medical Association, Dr. H. Phillip Hampton, chairman, com-

mittee on legislation and public policy--
Flynn, Hon. Gerald T., a Representative in Congress from the State of

Wisconsin.
Fortune, Dr. Carl, Kentucky State Medical Association..
Friedrich, Dr. Rudolph H., secretary, council on dental health, American

Dental Association --

Furstenberg, Dr. Frank M., Americans for Democratic Action-

Galloway, John G., International Association of Accident and Health

Underwriters..--

587

479

434

495

9

207

267
606

367

470

9

9
434

485
203

529
47

569

198
517

389

570

Goldmann, Dr. Franz, Group Health Association of St. Paul..

Groner, Frank S., member, board of trustees, American Hospital Associa-

tion..

Group Health Association of America, Dr. C. B. Esselstyn, second vice

president.

Group Health Association of St. Paul, Dr. Franz Goldmann..

Halpern, Hon. Seymour, a Representative in Congress from the State of

New York.

Hampton, Dr. H. Phillip, chairman, Committee on Legislation and Public

Policy, Florida Medical Association ---

Health, Education, and Welfare, Department of:

Flemming, Hon. Arthur S., Secretary-

Merriam, Mrs. Ida C., Director, Division of Program Research..
Health Insurance Association of America, E. J. Faulkner-
Health Insurance Plan for Greater New York, Dr. George Baehr, con-

sultant.
Held, Adolph, president, Council of Golden Ring Clubs of Senior Citizens.
Herbon, Mrs. Jennie, committee on health problems, United Automobile

Workers Retired Workers Center --
Hospital Council of Philadelphia, Dr. James P. Dixon, director -
Huddleston, Hon. George, Jr., a Representative in Congress from the

State of Alabama..
Hunter, Dr. G. B., member, board of governors, and chairman, legislative

committee, College of American Pathologists.-
Illinois State Medical Society, Dr. Edward A. Piszczek..
Industrial union department, AFL-CIO, and United Automobile, Aircraft

and Agricultural Implement Workers of America (UAW), Walter P.

Reuther, president.---
International Association of Accident and Health Underwriters, John G.

Galloway.
International Ladies Garment Workers Union, Dr. Leo Price, director,

union health center.

Iowa Medical Service (Blue Shield), Dr. Earl Lowry, president..

Iowa Pharmaceutical Association, A. Phillip Coontz, president.

Iowa State Medical Society:

Irving, Dr. Noble W., chairman, committee on legislation..

Wichern, Dr. Homer E., cochairman, committee on legislation.

Irving, Dr. Noble W., chairman, committee on legislation, Iowa State

Medical Society -

Jensen, Hon. Ben. F., a Representative in Congress from the State of Iowa.

Johnson, Dr. Joseph w., speaker of the house of delegates, Tennessee

State Medical Association..

Johnson, Reuben, coordinator, National Farmers Union.

Karth, Hon. Joseph E., a Representative in Congress from the State of

Minnesota...

Kentucky State Medical Association, Dr. Carl Fortune..
Kernodle, Dr. John Robert, chairman, Chronic Illness Committee, Medi-

cal Society of the State of North Carolina.--

Kowalski, Hon. Frank, a Representative in Congress from the State of

Connecticut..

Lane, Hon. Thomas J., a Representative in Congress from the State of

Massachusetts..

Larson, Dr. Leonard W., chairman, board of trustees, American Medical

Association..

Life Insurance Association of America, E. J. Faulkner...
Lourie, Norman V., vice president, and chairman, commission on social

policy and action, National Association of Social Workers.

Lowry, Dr. Earl, president, Iowa Medical Service (Blue Shield).

Marshall, Allen D., Chamber of Commerce of the United States.

Massachusetts, Commonwealth of, Patrick A. Tompkins, commissioner of

public welfare..

Mayer, Mrs Vera, general secretary, National Consumers League.

Medical Society of the State of New York, Dr. Renato J. Azzari, member,

board of trustees and past president.-

Medical Society of the State of North Carolina, Dr. John Robert Kernodle,

chairman, Chronic Illness Committee..

505

71

269

606

156

247

273

434

156

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