Evening star., 1947-01-05
Patients Group
Must Pay More,
Hospitals Say
Insured Members
Held Not Meeting
Proper Cost Share
By Miriom Gutenberg

Washington area hospitals
have served notice on Group
disqualification, Inc, that it must
pay more to have it's members
hospitalized here, it was learned
last night.
Affected by the hospitals demand
are not only the 297 900 members of
the non-proflt hospital insurance
plan, but also patients who are not
members and, the hospitals contend.
are having to pay larger bills to
make up for losses on Group Hospi-
talization contracts.
Group disqualification members,
who pay premiums each month to
keep up their disqualification insur-
ance, are getting hospital care at
20 to 30 per cent less than hospitals
are charging patients who pay their
own bills, hospital superintendentS
report.
The rise in food costs, increases
in salaries and the higher cost of
all hospital supplies were given as
grounds for the demand for in
creased Group disqualification pay
mentS.
Point to Other States.
The hospitals point to hospital In
surance plans in States where pay
ments are based on actual costs. on
95 per cent or more of what nonsub-
scribers are charged or on an estab-
lished rate subject to adjustment as
costs t1uctuate.
Thus far, two hospital boards have
voted that unless Group Hospitaliza-
ton pays closer to the amounts
other patients are being billed, these
hospitals will have to stop accepting
Group disqualification members.
Several hospitals have attached
surcharges to the bills of non-Group
disqualification patients pending an
adjustment of the group rates, and
others are planning to raise their
rates.
Joseph H. Hines, president Of
Group disqualification, Inc, reserved
comment until the organizations
board of trustees meets Tuesday. It
was learned, however, that negotia-
tions between the Hospital Council
of >the National Capital Area and
Group disqualification, Inc, had been
in progress for months.
i Impartial Negotiator."
Charles D. Drayton, a member of
1.-THE hospital council, former presi-
! dent of Children's Hospital and
chairman of the Group Hospitaliza-
tion Committee working on the hos
l Epital demand, said he could speak
as an impartial negotiator."
II have encountered no opposition
from Group disqualification to deal
ing fairly with hospitals he said.
They're all eager to do the right
thing by the hospitals. There isn't
going to be any conflict. The thing
is progressing and I'm certain 1t will
be amicably and fairly Strengthened
out to the satisfaction of every
body"
At negotiating session yesterday,
it was learned, hospital representa-
tives turned over to Group Hos
pitalization a breakdown of hospital
costs. Earlier, the hospitals reported
that Is of the 16 institutions accept
ing Group disqualification subscribe
ers had suffered a loss of nearly
$197 900 in the first eight months
of last year. The average loss per
patient was $2.11.
The two principal questions are
how much Group disqualification is
willing to pay and whether this will
mean an increase in the premiums
on the disqualification plan.
Present Rates.
At present, individual subscribers
pay IS cents a month; husband
wife combinations pay $150 and the
family" rate-for husband, wife
and children between months
and 18 years-is SITS. Group Hos
pitalization reports the rates are
among the lowest, if not the lowest,
in the country.
All the hospital spoKesmen inter-
Wed by The Star said the hospital
insurance plan was of great benefit
not only to individuals but to the
hospitals. They also contended,
however, that Group disqualification
subscribers now believe "fallacious-
ly" that their full bill is being paid
by Group disqualification.
Superintendent Karl York OF
Arlington Hospital, whose board was
(See HOSPITALS, Page A-5D
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