The Waterbury Democrat., 1946-06-11
Blue Cross Planning Increase in Rates
 Rise in Hospital Costs Blamed;
 Program Approved by State Insurance Commissioner
ConEnl99lOner

New Haven, June ll-With DOW to the general rise tn the cost of living, Connecticut Blue Gross will adjust the rates of It's 500.O00 mem- bers sometime in the early fall, it was announced today by Harry B, Kennedy, President of Connecticut Hospital Service. Inc.
 Attributing the adjustment to rise in hospital costs. Kennedy re- vealed that the increase. the first the Plan has made without increas- tag benefits. will amount to approx imately five cents a week for indiy- idualy enrolled members. 10 cents for husband and wife and l4 cents for families,
 For employees whose firms deduct Blue Gross membership fees month- ly, the new rates will amount to Sl.lO for individuals. S2,2O for hus- band and wife and S260 for fam ilies. Rates for subscribers nov on direct payment would be as all ways. slightly higher,
 URanimeuS Recommendation
 Kennedy stated that Blue Gross, along with hospitals and the State Insurance Department had been working on the problem since early last fall,
 "A committee of hospital tTus- tees. all business and professional men, made the formal study" ken- nedy said, and they unanimously recommended that Blue Cross keep it's present contract with few changes, Accepting these Tec0m- mendations and with an eye to stahlIizing the rate structure in the future. the Blue Gross directors made study of costs and produced the new rate schedule"
 The program as lt now stands has been approved by the State InSuF. anee Commissioner and needs only the formal acknowledgment by member hospitals, which is expect ed by approximately June l5, Ken nedy said,
 Kennedy pointed out that Con- neotleut Blue Cross was not alone as far as increased hospital costs were concerned, Most Blue Gross Plans throughout the country have increased their rates or are in the process of doing so, he stated,
 No Other solution
 There just isn't any other S0- luti0n," he said, Tn the last la months We have paid out sa,aaS,' aa2 "a, or % percent 0l our income, tA hospitals for the care and Sery- lee of our members, However, there are ether laotaTS that we must consider For instance appr0xlm. ately 0ne-thlrd Oi our members have Joined within the last year and We know from experience that they wlll require considerably m0Ee hospital care ln their second and following years, In addition, 0peE- aling costs must he considered, al. though thA expense for our organ lxatlan lS less than 70 percent, h. eldentally with two exceptions, our Plan has the lowest operating cost 0f the a9 Blue CF0SS Plans tn eSlsl- eAee,
 Finally we must maintain ade' Quats reserves ln the event of cpl. denies or similar catastrophe, og late we have had tO draw on our reserves, but we cant dip Into them continually, especially when you consider that We have paid out more than twelve million dollars for the hospital care ni our members since the Plan was started"
 Under the new program members will get the same number 0f days of hospital care each calendar year a, with an additional co days al partial c0yNFaRe, hlue Gross nlem' heFa will still he provided with spe' eil services. the most nnpFedletahle and In many instances. lhe mosl expensive Items ln hospital care such aS x-ray, operating room. anes. thesia, laboratory services. oxygen serunis, drugs, etc. during the al. day period regardless of e0Si. Tn adkitinn each mMan.haF ulill fef