Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-18

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Speaking at the annual con
mel Administration at the Hotel
the Administrators view that
families are in great need of A.
natcial protection against long
and costly illnesses.
Warren Irons. chief of the Civil
Service Commissions Bureau of
Departmental Operations and a
key figure IN the drafting of the
major health plan, said progress
was being made in reaching ac-
cord on the plan.
The various private health in
ISurance groups have opposed the
major health insurance plan. ia
lvoring a payroll-deduction basic
health insurance program for
Federal workers. These groups
would have a share in operating
such a program. The major
health program would be under
written by the commercial insur-
ance companies.
Administration officials and
the health insurance represent
tativeS are comforting on a COM
promise plan whereby the major
health insurance program would
permit voluntary payroll deduc-
tons for Federal employees who
are enrolled under basic health
insurance plans.
In his speech, Mr.. Folsom said
long and costly illnesses could
impose severe financial handi-
caps on Federal workers and
their families and that major
health insurance would afford
protection against this type of
thing happening. He said that
major health insurance is not
intended in any way as a sub
stitute for basic health inSur-
ance.
E. A. Van Steenwyk, executive
vice president of the Associated
Hospital Service of Philadelphia,
declared the proposed major
health insurance program might
raise the cost of all health insur-
ance. since there would be no
contracts with the various hos
pitals and doctors. He said
basic health insurance does have
these contracts and consequently
keeps down medical costs. But if
the Government agrees to pay
fiat sums on major health insur-
ance benefits without any con-
tract limitations, the danger ex-
lists that all medical costs will
rise considerably for everybody,
he said.
PAY-The SPA conference
heard attacks made on the Gov
ernment's pay system, both from
Federal officials and employee
leaders.
Civil Service Commission
Chairman Phillip Young ex-
pressed dissatisfaction with the
various Federal pay systems and
indicated the administration
would soon make specific pro-
posalS to change them. Mr.
Young once again raised the pos
sibility of prevailing wage rates
for Federal classified and postal
workers. based on the area where
they lived. He also discussed
the possibility of fixing pay en-
the basis of supply and demand.
Michael hardwood, president
of the National Federation of
Federal Employees, also sharply
criticized the Federal pay struc-
ture for classified employees. Mr.,
hardwood said the job ciassifi-
cation standards are too obscure
and obsolete and that there is
not enough spread between lower
and higher grade salaries in
Government. He said the Clas-
sif1cation Act was in need OF
considerable overhaul.
Mr. hardwood did not express
too much enthusiasm for pre-
vailing wage rates, saying such
an approach should be con-
sidered with a lot of caution
The union official said a system
of paying employees in one part
of the country more money than
those in other sections would
initiate against transfers in Gov
eminent and also cause morale
problems. He declared some Fed
eral positions are unique and
consequently cannot be CON-
pared to Jobs in private industry
for salary purposes.
Newell B. Terry. PERSONAL di-
rector of the Interior Depart
ment. urged various supplement
tai incentive pay plans to en-
courage Federal employees in
their work. He also said pre-
vailing rates of pay based on pay
rates in various parts of the
country should be applied tc
Federal jobs which can be put
in this category.
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