How Are the Bills Paid?

One of the main features of President Eisenhower's plan for improving the nation's health (TIME, Jan. 25) is more voluntary health insurance. Last week a man with a mountain of figures, based on a sampling survey of U.S. families, told the House Committee on Interstate and Foreign Commerce how much of the job voluntary insurance is now doing.

In the twelve months ending last June 30, said Kenneth Williamson of the Health Information Foundation,* the U.S. people paid out $10.2 billion for medical and dental services and goods (over and above the billions spent by federal, state and local governments), and only 15% of it was covered by insurance. The $10.2 billion breakdown:

P:$2billion for hospitals, 50% covered by insurance.

P: $3.8 billion to physicians, 13% covered by insurance.

P:$1.6 billion to dentists, less than 1% covered by insurance.

P: $1.5 billion for medicines and appliances, less than 1% covered by insurance.

P: $1.3 billion for opticians, private nurses, chiropractors, laboratory tests and the like,1% covered by insurance.

Giving more detail than had the President on medical hardships, Williamson spelled it out:

P: 6,000,000 families had medical expenses totaling 10% to 19% of their income.

P: 3,000,000 had expenses running from 20% to 99% of their income.

P: 500,000 families had medical bills which equaled or exceeded their income.

P: 8,000,000 families had medical debts totaling $1.1 billion.

These figures, said Williamson, underline the President's plea that the insurance plans should offer broader protection, and to more families. One of the hardest hit groups is the aged. Other H.I.F. figures (for March 1952) show that only 26.3% of the U.S. populace over the age of 65 is covered even by hospital insurance.

After retirement and as age increases, the insurance coverage falls off rapidly.

Concluded Williamson: voluntary insurance can do the job, but "more people need health insurance. Many people need better health insurance. Those persons not now protected are going to be the most difficult to enroll because of the factors of cost and administration. Many of them are also those that need it most."

* A nonprofit, fact-gathering group set up in 1949. Supported by 130 drug and chemical manufacturers, H.I.F. is pledged to do no lobbying, to present its findings impartially.

This file is automatically generated by a robot program, so reader's discretion is required.