Evening star., 1938-08-10
CroupHealth
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motion of Mr.. Moor to dismiss the
bill Of complaint brought by the
G. H. A., that 1t had erred in not
sutaining . motion to dismiss.
The District claimed the court erred
In holding G. H. A. was not engaged
in the business of insurance, that it
was not within the purview Of any
of the laws of the District relating
to insurance companies and that it
was not engaged in the insurance
business without complying with pro-
visions Of eight different sections Of
the District statutes.
Gees to Court Of Appeals.
The filing Of the appeal will take
the case before the District Court Of
Appeals. Questioned as to whether
an adverse decision there would result
in an appeal to the United States
Supreme Court, Mr.. Seal said it was
too early to know about that.
In his dicussion of the case with
reporters Mr.. Seal gave no indica-
ton that he felt that any OF the
various health or hospital associa-
tions in the District now were not
responsible or honorable concerns
In explaining that all of these con-
Germs now could operate without being
subject to the control of the Insurance
Department, Mr.. Seal explained that
other concerns could enter the field
and give the same sort of service.
ITO me this means that the door
would be left open to an influx OF
gyp concerns" said Mr.. Seal. "A 'gyp'
concern could operate without any
control by the superintendent of in
Surance as to the posting OF required
amounts Of reserves to cover the cost
OF subscribers to such a plan.
When this happens, the cry would
be raised as to why the District wasn't
doing something about it. II we left
the Bailey decision stand without an
appeal, We would find ourselves
estopped from any action by the In
surance Department. The only recourse
we would have would be to appeal to
Congress for new legislation. But in
the meantime the 'gyp' concern could
continue to take funds from the public.
1t was primarily on this ground that
we have decided to take an appeal"
Ruling Held Sound.
The Justice Department. in an.
nouncing its decision to let Justice
Bailey's ruling stand, declared its
opinion that this conclusion Is sound"
In fact continued the statement.
the courts in some States support the
decision OF Mr.. Justice Bailey even In
cases involving corporations which are
operated for profit"
The department quoted from the de.
cision Of Justice Bailey on this point
where ne said such a corporation.
not for profit but for the mutual bene.
mt Of It's members, is, in my opinion.
not engaged in the practice of medi.
cine or in holding itself out a.
doing so."
Quoting further from Justice Bailev,s
decision on question of statutory con.
struction, the department said: 1T is
evident that the purpose of the statute
was to protect the public from ouacks
from the ignorant and incompetent.
The actions of the plaintiff in no wav
tends to commercialize the practice of
medicine. Its membership is limited
to employees Of the Government in
certain Of the administrative branches.
It is not in the business of making
money by furnishing services to any
one who may come along"
Supported by Authorities.'
Discussing the decision of Justice
Bailey that 6. H. A. was not acting a.
IN insurance company, the depart
ment said it feels his ruling lis sup
ported by the authorities"
The Group Health Association is
engaged in providing a service" de-
clared the department., rather than
selling insurance. Consequently, it
does not act as an insurance company
within the meaning Of the District
Code or within the meaning of the
cases which have been defined in
surance companies
THE department is of the opinion
that the decision Of Mr.. Justice Bailey
would be affirmed and that, therefore.
an appeal would be departure from
the departments generally policy |
against medically DrolonsinG utiSa.
uou."