Fisconsin ey Anderson, Ludwig, Cooperative League of the United Barkin, Solomon, Textile Workers Union of America_ Becker, Harry J., president, Group Health Association, W Letters and telegrams on S. 1606- Universal agreement on need for better health care. Two types of voluntary plans _ - Voluntary plans cannot cover low-income groups_ Limited Benefits of voluntary plans.. High turn-over in voluntary plans. Inadequate consumer representation. Role of voluntary service plans under S. 1606. S. 2143 rejects the principle of social insurance_ Proper administrative policies for a national health pro Voluntary plans should not be subsidized.. Voluntary plans should not subsidize the public progra Controversy between group health and District Medica Biemiller, the Honorable Andrew J., Representative in Cong S. 1606 as a logical extension of social insurance. False charges by the medical profession_ The bill is not socialistic____. The bill does not establish a medical dictator__. Recent opposition of American Medical Association to S. 2143 would create an unprecedented bureaucracy. S. 1606 would improve medical care... Health insurance is a social and economic problem.... Public demand for health insurance_. The Wisconsin Medical Care plan Davis, Michael M., Ph. D., chairman, executive committee o directors, Committee for the Nation's Health Frothingham, Dr. Channing, chairman, Committee for Committee for Nation's Health. Election procedures in professional medical organizations Voluntary plans are inadequate. The people want insurance, not charity. S. 1606 would improve the quality of medical care- Jacques, Dr. Lawrence, Civic Medical Center, Chicago, Ill.. Description of Civic Medical Center... Soundness of prepayment principle- Limitations of voluntary plans Conflict with the Illinois State Medical Society.. NATIONAL HEALTH PROGRAM MONDAY, JUNE 24, 1946 UNITED STATES SENATE, COMMITTEE ON EDUCATION AND LABOR, Washington, D. C. The committee met at 10 a. m., pursuant to adjournment, the Honorable James E. Murray (chairman) presiding. Present: Senators Murray and Donnell. The CHAIRMAN. The hearing will come to order again this morning. Mr. Ludwig Anderson is the first witness. Mr. Anderson? STATEMENT OF LUDWIG ANDERSON, OF THE COOPERATIVE LEAGUE OF THE UNITED STATES OF AMERICA Mr. ANDERSON. Yes, sir. The CHAIRMAN. You may proceed with your statement. Mr. ANDERSON. My name is Ludwig Anderson. My address is 726 Jackson Place NW., Washington, D. C. I represent the Cooperative League of the United States, a consumers organization of national scope which has as one of its many interests the promotion and organization of consumer-sponsored and controlled medical- and hospitalcare plans. We asked for the time that has been given to us before this committee in order that we might make available to the committee the information that is the result of many years of experience in the medical-service insurance field. We have selected two spokesmen of outstanding examples of successful coperative medical-care plans which are typical of consumercontrolled plans; Group Health Association of Washington, D. C., and Group Health Mutual, Inc., of St. Paul, Minn. The CHAIRMAN. Mr. Anderson, do you have a mimeographed copy of your statement? Mr. ANDERSON. Not a mimeographed copy; no, sir. I only have this one. It is very short. The CHAIRMAN. Proceed. Mr. ANDERSON. We would like with your permission to have inserted in the record a statement which has not yet reached my desk but which is on the way by George Jacobson, executive secretary of Group Health Mutual of St. Paul. (Subsequently the following statement was submitted:) JUNE 25, 1946. MEMORANDUM ON S. 1606 PRESENTED TO THE SENATE COMMITTEE ON EDUCATION AND LABOR BY GEO. W. JACOBSON, SECRETARY-TREASURER OF GROUP HEALTH MUTUAL, INC., ST. PAUL, MINN. REASONS FOR SUBMITTING MEMORANDUM I have two principal reasons for submitting this memorandum on S. 1606. First, I am completely in agreement with the aims and purposes of the bill. As the representative of a democratically controlled organization of members, who are providing themselves with insurance against medical- and hospital-care expenses, I am keenly aware not only of the benefits provided by such insurance, but also of the fact that voluntary organizations, such as the one I represent, cannot alone meet the needs of the entire population of the United States, and that, therefore, action on the part of the Government is necessary and desirable. Second, although such Government action is highly desirable, I believe that whatever action is taken by the National Government should be of such nature as would encourage the continued development of voluntary plans, and should not contain provisions that might serve either to prevent their further expansion or to discourage the further organization and development of such plans. With regard to S. 1606-the bill now under consideration by the committeeI have no reason to believe that the point of view expressed above is not in accord with the purposes of the supporters of S. 1606. However, in analyzing the provisions of that bill, I have come to the conclusion that parts of it are phrased in such general terms that the interest of the public in maintaining the existence of voluntary cooperative health-care plans might not be provided with adequate safeguards, especially under possible future interpretations and administrative policies, and particularly in view of various State laws in the 48 States that would affect the operation of the national plan. Therefore, I should like to urge a consideration of clarifying amendments to the bill in its present form, to the end that the continued existence and development of voluntary plans would be assured under the national health-insurance program. I am not prepared to submit any specific suggestions for changes at this time. I think, however, that under title II, section 203, provisions might be added, stating that it shall be the policy of the Surgeon General to make full utilization of resources and facilities of private, nonprofit agencies which are qualified to furnish benefits and/or services. I should also like to see some provision in the bill which would prevent the possibility of any State discrimination in favor of or against any particular type of agency that might provide services under the national health-insurance plan. I am not sure just how such a provision should be made. Perhaps the part of section 203 which authorizes the Surgeon General to delegate powers and duties to State officers and agencies, might be amended in some way to include a safeguard against discrimination which might result from State laws or State administrative policies. Unless the bill can be amended so as to prevent discrimination against any particular type of agency that might provide the services under the national health-insurance plan, it is very possible that in some States, where prepayment medical corporation enabling laws are either monopoly laws or are administered so as to attain monopoly, the organized medical profession and allied groups will have the sole say in the administration of the national health plan on the State level. In other words, it is imperative to make it possible for voluntary cooperative health plans operated by lay groups to organize to negotiate for medical care with the profession as a liaison agency between the Government-insurance fund and the various medical professions and health institutions in order to create a healthy environment in which competition for quality as well as quantity in medicine is attainable. The bill, as it is now written, could well freeze the quality of medical services at its present level by giving the medical profession a virtual monopoly in the distribution of medical services by virtue of exclusive and monopolistic laws in favor of the medical profession now on the statute books of many States. We submit these suggestions to amend the bill, with the thought of making the plan more effective from the standpoint of laymen organized in voluntary health plans to provide themselves and their communities with an increasing quantity and quality of medical and other health services. Respectfully submitted. GEO. W. JACOBSON. We have asked Mr. Harry Becker, president of the Washington, D. C., organization to present a statement outlining the experience of the Group Health Association and to voice the opinion of other independent groups. I would like to give my place over to Mr. Becker at this time. As I have no further statement to make at this time, I wish to thank the committee in the name of the Cooperative League for giving us this opportunity. Senator DONNELL. Mr. Anderson, you are not going to testify as to the bill itself? Mr. ANDERSON. No, sir. Senator DONNELL. Would you give us just briefly what is the Cooperative League of the United States of America for which you appear? Mr. ANDERSON. It is an organization of cooperative organizations representing cooperative organizations all over the country. It is an educational and promotional group. Senator DONNELL. When was it organized? Mr. ANDERSON. About 20 years ago. I cannot tell you the exact date. Senator DONNELL. Where is its main office? Senator DONNELL. What is the address? Mr. ANDERSON. 343 South Dearborn Street. Mr. ANDERSON. Supported by dues from the member organizations. Mr. ANDERSON. About $40,000, I would say. Senator DONNELL. $40,000. Has it made any official expression by way of resolution or otherwise concerning this bill, S. 1606? Mr. ANDERSON. Because our organizations are scattered all over the country, it has been difficult to get them together. They are holding a national conference in August, and they have purposely delayed taking official action. Unofficially, I could give you the general attitude toward the bill, but I am not permitted to say what the resolutions would be. I have no resolution to present. Senator DONNELL. The League has not yet taken official action with respect to S. 1606? Mr. ANDERSON. That is right, sir. Senator DONNELL. Yes, sir. That is all, Mr. Anderson. Mr. ANDERSON. Yes, sir. The CHAIRMAN. Thank you, Mr. Anderson. Mr. Becker, you may state your full name and the name of the organization which you represent. |