Evening star., 1949-10-21

will mean raise of from $3.50 to
So a month for couples.
Mr.. Hines said it was decided
to eliminate the husband wife
contracts, because it was found
they cost CHI about the same as
the family contracts in payments
to hospitals.
CHI made. its first rate in
creases in Is years of operation
last December. 1t then boosted
singk-person contracts from IS
cents to $1.10, husband-wife con-
tracts from / so to $50 and family
contracts from SITS to $2.75.
Far Short of Costs.
Mr.. Hines SID those increases,
however, fell far short of rises in
hospital costs. Since June, 1949,
he said. CHI payments to hos
pitfalls have increased $2.57 per
patient-day, for a total increase
of $750,000. This, he said has
forced CHI to draw $1,000,000
from reserves during the last two
years.
The December l date makes
the rate rises effective for all
new subscribers after that time.
Present subscribers either may ac-
cept the new rates soon after
December land get advantage
of increased benefits announced
today-or maintain present rates
until their annual contract ex-
pires, when the new rates will go
into effect automatically.
Most significant of the new
benefits is the provision allowing
unemployed. self employed or
those employed in businesses
where there are less than 10
workers, to subscribe as indi-
viduals. Enrolment will begin in
January for these persons.
Because of administrative ex-
penses and the increased risk of
medical ills from individuals, Mr.
Hines said, individual rates will
be about 20 per cent higher than
group rates. and maternity bene-
fits will be excluded.
Forward Step Seen.
Despite the restrictions, how
ever. opening enrolment to in
dividuals is viewed as an i'm
portant forward step. One of the
chief criticisms of voluntary
health insurance has been that,
in most cases, it excluded per-
sons not employed where large
group plans could be set up.
Other new benefits to go into
effect with the rate increases, Mr..
Hines announced, include:
l. Full hospital benefits for polio
patients. At present, benefits are
limited to 10 days of hospital care.
2. Full hospital benefits, effec-
tive after the subscribers contract
has been in effect for 10 months,
for ailments which. existed on the
effective date. At present, pre-
existing ailments are permanent
1y excluded. Congential disabili-
ties will remain excluded.
8. Allowances in hospitals away
from the Washington area of $3.50
a day toward the hospital room.
plus allowances for other charges
ranging up to $82 for a 30-day
stay. At present, contracts call
for payment of SIS the first day.
and a fiat $3.50 for subsequent
days, with no other allowances.
4. Discontinuance of the 81 en-
rollment fee for new policies.
Rigid Requirements.
At the same time, however, Mr..
Hines said CHI will require more
rigid enrolment requirements for
new groups to be set up in busi-
nesses in which there are less
than $50 employees. At present,
at least half the employees of most
businesses must participate in
order for group to be formed.
Mr.. Hines said CHI already has
requested a meeting with hospitals
to take up the entire. question of
hospital costs and CHI payments
for the services hospitals furnish.
In letters to the hospitals, it
was learned, CHI served a required
13-month notice of cancellation
of the GHI-hospital contracts in
case new contracts are not nego-
tiated by the end of next February.
CHI officials said, however, that
mo implication" was to be drawn