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PUBLIC HEALTH SERVICE ACT

(MORTGAGE LOAN INSURANCE)

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A BILL TO AMEND THE PUBLIC HEALTH SERVICE ACT TO
PROVIDE MORTGAGE LOAN INSURANCE FOR HOSPITALS
AND MEDICAL FACILITIES USED IN CONNECTION WITH

VOLUNTARY PREPAYMENT HEALTH PLANS

APRIL 28, 29, 30, AND MAY 7, 1954

'C. Congress. It

Printed for the use of the Committee on Interstate and Foreign Commerce

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COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

CHARLES A. WOLVERTON, New Jersey, Chairman CARL HINSHAW, California

ROBERT CROSSER, Ohio JOSEPH P. O'HARA, Minnesota

J. PERCY PRIEST, Tennessee ROBERT HALE, Maine

OREN HARRIS, Arkansas JAMES I. DOLLIVER, Iowa

DWIGHT L. ROGERS, Florida JOHN W. HESELTON, Massachusetts ARTHUR G. KLEIN, New York JOHN B. BENNETT, Michigan

WILLIAM T, GRANAHAN, Pennsylvania RICHARD W. HOFFMAN, Illinois

F. ERTEL CARLYLE, North Carolina JOHN V. BEAMER, Indiana

JOHN BELL WILLIAMS, Mississippi WILLIAM L. SPRINGER, Illinois

PETER F. MACK, JR., Illinois ALVIN R. BUSH, Pennsylvania

HOMER THORNBERRY, Texas PAUL F. SCHENCK, Ohio

LOUIS B. HELLER, New York JOSEPH L. CARRIGG, Pennsylvania

KENNETH A. ROBERTS, Alabama HERBERT B. WARBURTON, Delaware MORGAN M. MOULDER, Missouri STEVEN B. DEROUNIAN, New York

HARLEY 0. STAGGERS, West Virginia THOMAS M. PELLY, Washington J. ARTHUR YOUNGER, California

ELTON J. LAYTON, Clerk

KURT BORCHARDT
SAM G. SPAL

PROFESSIONAL STAFF

ANDREW STEVENSON
A. E. STOCKBERGER

II

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87

Page

Text of H. R. 7700.--

3

Report of—

Bureau of the Budget-

14

Federal Reserve System, Board of Governors_

18

Health, Education, and Welfare Department-

-12, 151

Housing and Home Finance Agency -

16

Navy Department

17

Treasury Department.

17

Veterans Administration...

15

Statement of-

Baehr, Dr. George, president and medical director, Health Insurance

Plan of Greater New York..

65

Bailey, Dr. Joseph A., Washington Clinic, Washington, D. C.--

19

Biemiller, Andrew J., member of the national legislative committee,

American Federation of Labor.

Carey, Dr. Richard M., medical director, Upper Manhattan Medical

Group, Health Insurance Plan of Greater New York..

76

Case, Melvin A., first vice president, National Association of
Registered Nursing Homes --

129

Cruikshank, Nelson M., director of social insurance activities,

American Federation of Labor..

87

Garfield, Dr. Sidney R., medical director, Kaiser Foundation,

Oakland, Calif.

101

Hopkins, Mrs. Minnie Hood, chairman, legislative committee,

National Association of Registered Nursing Homes_

129

Javits, Hon. Jacob K., a Representative in Congress from the State of

New York...

59

Jordan, Dr. Edwin P., American Association of Medical Clinics.

40

Kaiser, Henry J., Kaiser Foundation, Oakland, Calif-

101

Manning, Thurmond W., first vice president, Virginia Association of

Nursing Homes.

138

Pickard, Dr. Karl, medical administrator, Central Medical Group,

Brooklyn, N. Y

78

Rickler, Arnold H., legal counsel, National Association of Registered

Nursing Homes

129

Rothenberg, Dr. Robert E., medical director, Central Group of Brook-

lyn, Health Insurance Plan of Greater New York...

73

Siegal, Zuzie, president, National Association of Registered Nursing

Homes

129

Stone, Mrs. Evelyn G., chairman, standards committee, Missouri

Association of Licensed Nursing Homes ..

140

Yater, Dr. Wallace M., Yater Clinic, Washington, D. C.---

40

Additional information submitted for the record by-

American Federation of Labor: Announcing the Cooperative Health

Insurance Plan of Milwaukee, Inc.-

100

American Life Convention, letter from Claris Adams, executive vice

president and general counsel.

146

American Medical Association, letter from Dr. George F. Lull, secre-

tary and general manager.

149

American Osteopathic Association, letter from Dr C. D. Swope, chair-

man,

department of public relations, transmitting statement

142

Baehr, Dr. George: A message from the chairman of the board and
the president, Health Insurance Plan of Greater New York.-

82
Bowery Savings Bank, letter from Harry Held, vice president

148
Farm Bureau Insurance Co., letter from Murray D. Lincoln, president. 147

PUBLIC HEALTH SERVICE ACT

(Mortgage Loan Insurance)

WEDNESDAY, APRIL 28, 1954

HOUSE OF REPRESENTATIVES,
COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, D.C. The committee met at 10 a. m., pursuant to call, in room 1334, New House Office Building, Hon. Charles A. Wolverton (chairman) presiding

The CHAIRMAN. The committee will please be in order.

Today, we open our hearings on H. R. 7700, a new legislative proposal which emerged from the extensive hearings conducted by this committee on ways to afford protection for greater and greater numbers of our people against the appalling ravages and the staggering costs of catastrophic illness.

Confronted with the array of pressing medical-care problems facing our people today, this committee has been particularly impressed with the great need for extending to millions upon millions of our people the opportunity of obtaining comprehensive medical care of high quality at reasonable costs. This is the primary objective of H. R. 7700, the bill now under consideration.

Extensive testimony has been presented to our committee during the past several months regarding the high cost of medical care, the tragic financial burdens of illness and the need for high quality medical care for all our people. This has been the evidence presented to us by the overwhelming majority of witnesses who have appeared before us-spokesmen for many millions of American workers and their families, leaders of major industries, Secretary Hobby and her staff of the Department of Health, Education, and Welfare, physicians of unimpeachable authority and of eminent regard, both within and outside their profession.

Keenly aware of these problems, President Eisenhower in his January 18 health message, stated that:

No nation and no administration can ever afford to be complacent about the health of its citizens. While continuing to reject Government regimentation, we shall with vigor and imagination, continuously search out by appropriate means, recommend, and put into effect new methods of achieving better health for all our people.

New methods of achieving better health for our people have been described in considerable detail to our committee. These methods demonstrate the effectiveness of applying sound principles, American initiative, private enterprise, and imagination to the problems of medical care, distribution, and costs. These methods drive home the message that medical economics must keep pace with medical science.

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