Hospitalization insurance for OASDI beneficiaries : report submitted to the Committee on Ways and Means by the Secretary of Health, Education, and Welfare in compliance with House Report 2288, 85th Congress.

  • United States Department of Health, Education, and Welfare
Date:
1959
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Licence: Public Domain Mark

Credit: Hospitalization insurance for OASDI beneficiaries : report submitted to the Committee on Ways and Means by the Secretary of Health, Education, and Welfare in compliance with House Report 2288, 85th Congress. Source: Wellcome Collection.

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    D. NATIONAL COMPULSORY INSURANCE WITH STATE OPERATION A series of proposals for a national compulsory system of health ben- efits was introduced by Senators Wagner and Murray and Congress- man Dingell during the period 1948-57. These proposals provided for the setting up of a separate account in the U.S. Treasury and for pay- ments to this account computed as a percent of the taxable earnings of insured persons. The compulsory coverage of the proposals included almost all em- ployees and self-employed in private pursuits, Federal civilian em- ployees and annuitants, and persons entitled to OASDI benefits, and their dependents. Groups not compulsorily covered, such as recipients of public assistance, the unemployed, and certain persons in temporary employment (and their dependents) could be insured for any periods for which payments were made by or for them or for which guarantees of payment were made by any local, State, or Federal agency. The benefits proposed included almost all physicians’, dental, and home nursing services; hospital services for periods up to 60 days per beneficiary per year; prescribed auxiliary services and appliances and usually expensive drugs. AJ] benefits except general practitioner and dental services would be available only be referral or prescription. Since the Wagner-Murray-Dingell proposal was introduced as a health rather than a tax measure, the exact methods of raising Federal revenues to finance the benefits were not specified in the bill itself. However, the bill was so drafted as to make it clear that revenues would come, in the main, from payroll taxes. The proposals contemplated administration by the States as agents. Any State could assume responsibility for administering the specified benefits within its boundaries by submitting to the National Insurance Board a plan which comphed with listed provisions in the bill. The National Insurance Board could itself administer the program in States without approved plans. Federal] authorities would divide funds among the States on the basis of population, availability of health resources, and differing costs of services In various areas. State administrative agencies would contract with providers of care and fix rates of payments for services; State agencies would pay providers’ bills or might utilize local health region officials or nonprofit voluntary prepayment plans as agents for making such payments. Physicians would select the manner in which they would be reimbursed, whether by fee-for-service, capitation, or salary.