Evening star., 1937-11-05
STUDY LICENSING
OF HEALTH GROUP
Seal to Probe Insurance
Status as Doctors Work
on Lower Costs.

BACKGROUND
The Group Health Association,
Inc. tCds organized to provide
medical serDfce for subscribing en-
ployes of Federal Home Loan Bank
Board and AFFILIATED agencies. De-
Tended by Federal officials and some
physicians, it has been attacked by
the District Medical Society as
moUe in direction of socialized
medicine.
Corporation Counsel Elwood H. Seal
today began q study Of the Group
Health Association, Inc, to determine
whether it is operating an insurance
plan, and whether it should be licensed
by the District Insurance Department.
Mr.. Seal said he had begun the
study at the request Of DR.. George C.
Rutland, District health officer.
j. Balch Moor, District superinten-
dent Of insurance, said he had been
in touch with Group Health Associa-
tion, but would take no action in ad-
vance Of q finding by the corporation
counsel.
Meanwhile the District Medical So
ciety was proceeding cautiously" with
a program of its own opposing the
G. H. A. and seeking new means of
lowering the cost Of medical care here.
Two distinguished physicians, men,
bers OF the Medical Society, were be-
lived to be either on their way to Chi
cago or planning to leave shortly to
take up the status of the G. H. A. with
the American Medical Association.
$3.50 . Month for Family.
The corporation counsel will make
his study of the operations of the G.
H. A. first from the corporation papers
filed with the District recorder of
deeds last February "a. Under the
plan, members Of the association who
are employees Of the Federal Home Loan
Bank Board, or its affiliates here. pay
S2.2O each per month for clinic serv-
ice, medical care and disqualification,
or $3.50 per month to include the mem
Der and his family.
If this plan constitutes insurance in
the eyes of the law. Mr.. Seal said, it
would change the status of the G. H.
A., which now is only corporation.
IF We find this association is do
ing an insurance business" said Mr..
Seal, 'the association would be re-
quired to be licensed and to put up
the necessary insurance reserve fund.
II they should refuse, I will recon-
mend that they be prosecuted"
Explaining that his study will be
confined to the insurance question
alone, Mr.. Seal emphasized that he
will not be concerned with the ques-
ton of whether a corporation i'll
stead of an individual Is engaged in
medical practice or whether all the
doctors in the G. H. A. are licensed
to practice medicine.
Deny Insurance Claim.
Spokesman for the G. H. A. said
today legal experts of the F. H. L. B.
B. had gone carefully into all aspects
Of the new corporation and were con-
vinced it is not an insurance COM
pany but is merely corporation en-
gagged in selling service. All physicians
engaged in the work of the G. H. A.
are licensed to practice medicine in the
District, it was emphasized, and they
plan to conduct the medical affairs
Of the clinic according to the best
medical practice and the highest eth
ical standards.
The Medical Society's action fol-
lowed increased demand for lower
cost Of medical care and the estab-
lishment Of the G. H. A. here. DR..
Thomas E. Neill, president of the So
ciety, said he had appointed two
physicians to make the trip to Chi
cago headquarters of the American
Medical Association, but was not
ready yet to disclose their names.
Under present plans, they will con-
fer with the parent body of the local
medical unit on several questions.
They will study the set-up of the new
clinic. and the report made by the
(ann TymAY Tu n~r-- =