Evening star., 1950-06-21
$4,000 Facing
Boostin Medical
20-70-Cent Increase
To Toke Effect Sept. !
To Help Eose Deficit
By George eeveridas

cents q month to the more than
222 900 Washington residents en-
rolled in the District Medical So-
ciety's prepayment surgical serv.
ice plan will so into effect Sep.
tember /. 1t was announced today.
At the same time. fees to doc
tors who provide service under
the plan will be paid on a pro-
rated basis until further notice"
officials said.
DR.. Frank D. Costenbader. presi-
dent. said the two moves are nec-
essary to provide immediate re-
lief" from deficits incurred by
widespread service and swift
public acceptance" Of the plan.
Effective September /. he said.
rates for coverage under the pro-
gram will increase from the cur
rent so cents to 81 a month for
individual contracts and from the
present 50 to $2.70 for those with
family contracts.
Administered by CHI.
The plan. sponsored by the
medical society. is administered
by Group disqualification. Inc.
which enrolls Washington resi-
dents for protection against hos
pital bills. Under the doctors
plan. physicians fees for surgical.
obstetrical and other services given
In hospitals are covered.
The new rate schedule applies
only to the medical plan. with no
increases scheduled for subscribe
ers to the disqualification plan.
In Just over two years of the
plans existence. DR.. Costenbader
said, more than $4,000 persons
have been enrolled. making 1t
the fastest growing Blue Shield
voluntary IAedical insurance)
plan in the country" Thus far.
doctors have been paid more than
$1.9 million for their service.
The president said 1t Is now
necessary for the physicians to
assist the plan temporarily" be-
cause the great demand for serv-
ices has more than Offset the
income we have received from our
rapid growth"
Doctors win Be Repaid.
DR.. Costenbader stressed that
the pro-rate plan for doctors will
be in the form Of q loan from
them, however. and that it is the
declared intention Of the board
Of trustees" to repay them as
soon as the plan Is able"
On the average, between 80 and
40 per cent Of the established fees
set up for doctors will be withheld
under the pro-rata plan, officials
said.
While the plan has not yet
reached the stage Of an actual
deficit, DR.. Costenbader said. there
has been an operating deficit" Of
about $40. 900 a month for the last
three or four months. The result.
he said, is that the plans reserves
have dwindled to the point that
an actual deficit would follow
without immediate action.
Enrolment Limits Applied.
One Of the chief reasons for the
problem, the president
said. is that until the first Of this
year there was no waiting period
for such elective" operations as
tonsillectomies and pelvic surgery.
This meant that persons could en-.
roll in the plan and almost i'm
mediately be eligible for free care.
Now, however, subscribers must be
enrolled for at least 10 months be.
fore being eligible for such bene-
Ats. The same limit applies TO
obStetrical cases.
Another factor, he said. is that
such services as X-ray. laboratory
and anesthesia are covered by the
Washington medical plan. In
many cities. such services are con-
sidered part Of the hospitaliza-
ton insurance program.
The increases announced today
are the first since the plan began.
officials said.
OF the 222 900 persons enrolled,
about $4,000 have individual con-
tracts, and about $4,000 are in
family contracts.
Expansion VIII Be Studied.
The need for the rate increases
indicates there is slight chance Of
of BENEFITS under the
surgical plan in the near future.
DR.. Costenbader said, however.
that committees set up to study
extension will continue to make
active plans"
DR.. Costenbader said the ex-
lsting financial problems are mot
alarming" in light Of experience
Of other plans.
"After two years." he declared.
we have the experience and In.
we need to place med
cal service on a sound financial
basis. For the first time, 1t il
possible for US to forsee reason
IDLY well the rate Of utilization as
we'll as the cost of the services
he plan provides in relationship
% the charges paid by SUBJ