Montana labor news., 1945-03-01
THE WHY'S OF A
MEDICAL HEALTH
INSURANCE PLAN

insurance is printed. A short article
on this subject will be printed each week
until the subject has been covered. This
is the first Of such articles.
Question; Why do we need health and
medical insurance?
Answer: Many people in the United
States fail to receive the medical care
they need. Many fail to receive medical
care as soon as they need it, when such
care would be most effective in prevent
ing more serious illness or disability.
Financial barriers are principally respon-
sible for failure to receive medical care.
Lack of qualified medical personnel or
facilities in poor or sparsely populated
communities prevents the receipt Of
medical care even when people are able
to pay for it. Physicians and other
health personnel tend to establish prac-
tice in Well-to-do OF wealthy cOmmuni-
ties where opportunities for income and
professional advancement appear more
promising. Development of health IA
cilities hospitals, health centers, and
the like similarly reflects the wealth
of the community, further illustrating
the economic barriers in existing meth
DDS Of paying for medical care.
In an ordinary year. a large proper
ton of families may need to spend little
for medical care, but some 10 to Is per
on,4 mill ,aod fo r,ooI eEoo 80. ,,oro
No one family can foresee when it will
need to make large or small medical ex-
p%enditures. As a result, many families
with small or moderate income cannot
meet heavy medical costs or budget for
them. Few families can save enough to
protect themselves against unexpected
contingencies.
Nearly everyone experiences n or
more serious illnesses in a lifetime, in
volving large expenditures for medical
care. Although medical costs cannot be
budgeted on a family or individual basis
they can be foreseen for large or whole
groups Of the population. Insurance is
therefore ar especially appropriate de-
vice for meeting the costs of medical
care.
Insurance spreads among thousands OF
millions of families the costs of c~atastro-
phic illness which otherwise might fall
on only a few in any year. Insurance
viii make it possible for the inividual
family to budget effectively against the
costs Of medical care, just as many now
budget for life insurance, fire insurance
or other collective protection.
Voluntary m~edical-care insurance is
generally costly; workers with small
earnings who need protection most Of all
seldom purchase such protection for
themselves and their families. Through
social insurance, cost sOf adequate basic
medical and hospital services for work
ers and their dependents could be met
through small periodic contributions.
Contributions Of 3 per cent Of annual
earnings-which could be shared equally
between workers and their employer
would pay for basic services for all in
Guided in the program.
With a social insurance program, pro-
vision could be made also for services
to those who are dependent on public
aid. Public agencies could arrange to
reimburse the insurance fund for serv-
ices furnished to needy persons. Far
more effective and prompt medical and
hospital care can be given to most Of
our population if the costs are met
through social insurance. Total expendi-
lures would not need to be much larger
than those now being made without in
surance.
Social insurance which guarantees the
costs of basic medical and hospital care
for all who are covered by the insur-
ance system will go far toward correct
ing the present scarcity of medical per
sonnet and facilities in poorer commu-
mites. Assurance of a regular income
in return for services rendered will en-
courage physicians to go where they are
needed. Presence of doctors and other
medical personnel in the communities
the guarantee that hospitals will be paid
for their services, and assurance that
facilities will be used that will stimulate
construction Of hospitals in many areas
which now lack them.
Social insurance against the costs of
medical care will thus give greater eco
nomic security to producers of medical
care as well as to consumers" Doctors
will have steadier and larger average
net incomes and the incomes of hospi-
tails will be larger and more regular.