Evening star., 1952-01-11
Back of the CHI Rate Increases
Hospital Care Away From D. c.
LiberoIized for Subscribers

I'm tioo articles, The Star er-
anaineS the recent rate increases
and benefit changes in the
Group disqualification, Inc,
plan. This is the second. The
first appeared yeSterdayJ
Decisions designed by Group
disqualification, Inc. to bring its
prepayment hospital plan up to
date will be reflected in a num-
ber of changes in benefits for
Washington area subscribers this
year.
Most significant of them, as
described in The Star yesterday,
is the move to reduce maternity
benefits next October. In at least
one important instance, however,
coverage has been increased
against the high costs of hospital
care.
The increased benefit gives
more protection to CHI partici-
pants who must be hospitalized
while they are away from the
Washington area.
Previously. CHI paid such sub
scribers $3.50 a day toward the
cost of hospital rooms in the
out-of-town hospitals and cash
allowances against other charges.
Same Protection Extended.
Under the new arrangement
subscribers get financial protec-
tion against virtually the entire
hospital bills-regardless of how
much money is involved-just as
they would in hospitals here. This
benefit covers disqualification in
about $500 institutions through
out the country, where voluntary
prepayment plans of the Blue
Cross Commission are in effect.
1t was made possible through
|GH1's participation, beginning
this month, in an "Inter-Plan
Service Benefit Agreement" set
up by the Blue Cross Commission.
The commission has set up a
bank to handle the exchange pro-
gram. This is the way it works:
A CHI subscriber. hospitalized
in New York, would get the same
protection against his hospital
bill as the Blue Grass plan there
gives its own subscribers. The
New York plan then would bill
the bank for the amount it spent.
The bank, in turn, would bill
CHI for the amount, plus a serv-
ice charge.
CHI, under the plan, will grant
the same benefits to subscribers of
other Blue Cross plans hos
pltalized here and will be repaid.
Participation in the inter-plan
agreement. will cost CHI about
5000 900 a year. Oficials estimate
the cost will be about II per cent
greater than the cost of its pre-.
viouS cash-allowance benefits for
subscribers.
Subscribers Being Informed.
The inter-plan bank agreement
is one of the major projects Of
the Blue Cross system, which was1
to foster the principle
OF voluntary insurance, as opposed
to a system of Government health
CHI currently Is distributing
pamphlets to subscribers, which
list revised benefits, but which do
not compare them with those pre-
viously in effect. AS in the case
of maternity benefits, some Of
the changes are hinged on the
necessity of bringing CHI income
more in line with Spiraling hos
pital costs.
One change is that virtually all
OF the subscribers hospital ex-I
penses will be paid by CHI for
continuous periods of hospitaliza-
ton ranging up to 81 days, with
a $5-a-day cash allowance for
continuous days in excess of 81.
Ninety days after the patient
is discharged from the hospital,
however, he will be eligible for
another 81 days of complete COW
erage against expenses.
Previously. the contract called
for 80 days OF. full protection a.
year. But this 80 days could be
used in one disqualification period.
In addition, the plan previously
paid so per cent of the cost of
a Semiprivate room for another
1S0 days-rather than the present
$5 a day cash allowance.
Changes Held Beneficial.
CHI contends the change is a
broadened benefit, since it per-
mits full protection against more
than one period of lengthy hos
pitalization. No substa- itial diff
ference in cost is involved.
In other changes:
l. CHI will grant a $10-a-dayl
allowance toward the cost Of al
private room, if the patient elects
not to stay in a fully paid semi
private room.
Previously, CHI in such cases
credited the patient with the cost
of the highest-price semiprivate
THIS SUNDAYS