Evening star., 1938-07-20

it is administered through a Federal
agency"
Earlier in the day another out
spoken attack on the Government
program came from DR.. S. S. Gold
water. commissioner of the Depart
ment OF Hospitals, New York City,
who declared the objectiwes were
'commendable," but the program SUBJ
mitted arrives at its results by methods
OF calculation that are too simple to
be reliable"
Outstanding among many who
spoke yesterday in support of the
health program was Charles w
Taussig. president Of the American
MolaSses Co.. who is chairman of the
Advisory Committee, National Youth
Administration. Progressive business, -
he predicted. will regard an adequate
health service as a subsidy to in
custry. not as burden" The confer
ence he characterized as presenting "a
magnificent challenge to the demo-
cratic process"
Plan Glngerly Presented.
Most controversial of all issues pre-
sented by the Government experts
that for medical care and social in
surance against temporary and per-
manent disability"-was quietly laid
before the conference last night by
two representatives of the Social Sc
curity Board in an atmosphere OF
tense expectation. Chairman Alt
meyer limited at the novelty of the
proposal when he declared we have
the feeling of embarking on an un-
charted ocean in a rowboat without
oars and with a compass that sticks" "
He cited success Of the Social Sc
curity Act as kind of precedent for
the new venture which proposed q
program of medical care even for the
self supporting American hit by
catastrophe illness
The plan was laid before the dis
tinguished company of doctors, social
workers, labor leaders, civic work.
ers and others by DR.. l. S. Falk, a
member of the Technical Committee
on Medical Care.
This committee had reached the
conclusion. he said, that govern
ment must assume larger responsible
ties than it has carried in the past If
it is to help self-supporting people
meet the problems of medical costs. p"
He proposed Federal grants-in-aid''
to the States toward the costs of q
more general medical care program.
Would Spread Costs.
IF effective medical services are to
become a reality" he explained. "peo-
pie of small means must be able to
obtain these services without facing
the costs at the time the services are
needed.
Between the individuals or insti-
tutions equipped to serve the sick and
the millions of people in need of their
services stand BARRIERS" DR.. Falk de-
clared, "the most important of which
is an economic wall which both groups
are anxious to scale"
At present, he reported on behalf
Of the committee, about 80 per cent
Of the Nations medical bill falls di-
rectly upon families and individuals,
about 16 per cent is paid by govern
ment and the rest by philanthropy and
industry.
The committee reported that ade-
quate medical care, purchased on an
individual basis At minimum rates,
would cost on the average about $76 q
person q year. Costs of adequate
medical and dental care through Or
ganized services to groups are esti-
mated to be approximately $25 a
person a year. The committee de-
clared: If medical care is to be
made available to all families with
small or modest incomes at costs they
can afford the costs must be spread
among groups Of people and over
periods of time"
Distribution of medical costs, the
report continued. may be effected
through the use of taxation to support
programs of public medical care or
through the use Of insurance or
through = combination of these two
methods. Tax-supported public med
ical services now involve annual ex-
penditures Of about $500,000, 900 to
$500, 900, 900, DR.. Falk pointed out. It
was estimated that program OF gen.
eral medical care "of sufficient size
and scope to come to real grips with
the national needs" would involve new
tax expenditures Of some one to three
billion dollars a wear.
Such expenditures, it was pointed
out, would not represent . new kind
Of expenditure by the population; most
Of these sums are already being spent
from private funds. The essential
change would be to effect a wider dis
tribution Of medical costs by changing
the method of payment"
A comprehensive system of health
insurance, If considered as an alterna-
tive to unsupported services, would
call for total funds equal to 1 or ~
per cent Of income Of the covered
population, obtained from the direct
contributions Of insured persons with
assistance from employers and from
governments. The committee estimat-
ed that the cost Of temporary disabil-
ity compensation, patterned after I'M
employment compensation, would be
approximately 1 per cent Of wages.