Evening star., 1935-01-18
HEALTH INSURANCE
INTRODUCED
KimbIe Enters First of So
ciaI Legislation Measures
in Assembly.
BY GEORGE PORTER,
Staf Correspondent of The Star.

ANNAPOLIS, January 18.-The
first OF the much-discussed social
legislation measures for Maryland was
before the Legislature today, having
been introduced with about a dozen
miscellaneous measures yesterday.
1t paves the way for a health
insurance program IN the State by
permitting the establishment of nom
profit hospital services. Sponsored by
Senator Robert S. Kimble, Republican,
Of Allegany County, it would permit
hospitals to sell group health insur-
ance" under which individuals. for a
fixed sum, would be entitled to certain
medical and surgical services.
In Use Elsewhere.
Similar schemes are in operation in
several States, notably California,
Kimble said Legislation is needed be-
fore such plans can be put in effect
in Maryland, the Allegany Senator
explained, because all insurance con-
Germs in Maryland have to establish
a reserve fund. His bill would exempt
hospitals, in furnishing group health
insurance, from the State insurance
law requiring the creation of a re-
serve fund. AS the enterprise would
be non-profit making there would be
no need for such a fund, Kimble de-
clared.
Paving the way for further social
legislation covering old-age pensions
and unemployment insurance, Sena-
tor David ]. Baille OF Carroll County
the Republican floor leader introduced
bills to produce sl1,00o000 annually
under the program suggested in Gov
Harry w. Nice's message Wednesday
The old-age pension and unemploy-
ment insurance schemes would require
So, 200. 900 OF the sum sought.
The bills provide for State in
come tax at one-half the Federal
rate. increased gross revenue taxes on
public utilities, larger inheritance
taxes and new forms Of taxes on race
tracks.
Politics in Evidence.
Despite efforts by all concerned to
keep politics out of the relief queS-
ton. partisan lines were much in evil
dence in the State house today as
controversy over Gov. Harry w. Nice's
revenue proposals waged unabated.
Members of the Legislature marked
time as far as action on the Gov
ernor's suggestions was concerned
awaiting the outcome of renewed ne
gotiations between the State and Fed
eral authorities over Maryland's share
Of the cost.
In what was regarded as clever
political move. Gov. Nice agreed to
designate Senator j. Allan Coad tc
st. Marys County the Democratic
floor leader, to represent the State al
a conference with Federal relief au-
thorities in Washington on Monday
The Executive said the Senator was
at liberty to discuss the question from
any angle. find out all that Is expected
of Maryland, and make sure that a
State appropriation of S7,200,000 a
year will be necessary. That was the
figure the Federal officials asked of
Maryland when Gov. Nice visited
Washington in December.
Almost every community Is en-
gagged In making a grab bag of re-
lief" he continued.
Declaring the Republican Governor
should give some thought to tax re-
lief rather than new forms of taxation
the Worcester Senator argued that
relief costs would continue to mount
as long as they are borne by the State
and Federal Governments. Counties
and towns have not only stopped con-
tributing to relief, but have stopped
attempting to cut down on extravagant
expenditures, he said.