Evening star., 1960-05-04
AGED
! Il Million Covered
! In 6. 0. P. Proposal
CONTINUED Prom First PaE

Continued Frem First Page
man of the Senate Finance
Committee, that might handle
such q bill.
This Townsend Plan Rube
Goldberg scheme is more So
ctalistic and more unsound and
ultimately more expensive than
the Forand bill. Unlike the Fo-
rand bill, it levies no taxes to
pay for the benefits, but re-
otlires that it be financed out
Of deficit spending from the
general treasury. Similar pro-
posals for highways and other
programs have been properly
denounced by the adminiStra-
ton as budget-busting and fis-
cally irresponsible. This scheme
wrinss $500 million a year out
OF the treasures of the States
1t is open to the suspicion that
In operation its chief benefl-
ciaries will be the insurance
companies"
Mr.. Flemming said the pro-
gram, although functionins
administratively as a Federal.
state partnership" would &C
far to encourage development
Of group health insurance anc
similar private programs.
Income Ceiling
Main points in the program
would be:
1t would be open to all per
sons IS and over who did no
pay an income tax in the pre-
cedins year. 1t also would b
open to all taxpayers SIS anC
over whose adjusted gross in
eC-ae, including social security
railroad retirement pay ant
veterans pensions in the pre-
ceding year did not exceet
$500. or $4,000 for q couple.
Eligible persons would be en-
titled to the health care bene
rs by paying an enrollmen
fee of S24 a year. They ais
would have to pay the frs
$3.50 of the cost Of health an,
medical care This initial pay
ment would be $400 in the cas-
Of a couple.
Aged persons on public as
sstance rolls would not hav
to pay the enrolment fee. TIL
Initial $3.50 payment for in
CURED medical expenses woul
be paid by the State in such in
stances.
The program would pay 8
per cent of the cost OF tn
specified hospital, nursin
home. surgical, medical an
other services. In the case @
public assistance recipients, tn
program would pay the entir
cost.
Private Insurance
Each aged person eligible 70
participation in this program
could elect to buy a medical ex
pense insurance policy from
private group. Half of the cos
of such a policy would be pai
for him from Federal-Stat
matching funds up to a maxi
mum of $50.
II a persons income rise
above $2,500 a year he coul
continue in the program b
having his fee raised on a slid
ing scale for each $500 Of add
tional income until the fe
covered the full per capita cos
Of available benefits.
The Medicare program 10
the aged would be administere
BY the State, but each Stat
plan would have to be ap
proved by the Health, Educa
ton and welfare Department
Federal and State govern
ments would finance thel
share of the program on
matching basis. Federal match
ing funds would be so per Ger
Of the average" with an equali
zation formula ranging fror
1914 per cent to 662a per Ger
for the Federal share.
Estimated Costs
Mr.. Flemming estimated tha
the Federal Governments cor
tribution would be about $50
million a year and the State
A total of $500 million whe
the program is in full opera
ton.
He said that If legislation wei
enacted this year the Feder'
Governments outlay woul
have to be about IS million
Start the plan.
There would be some n
duction to the extent that pei