Government Aid for Health Plans

Report Outline
Eisenhower Concept of Government's Role
Rapid Development of Voluntary Insurance
Costs of Protection Against Medical Bills
Problems in Expanding Health Plan Coverage
Special Focus

Eisenhower Concept of Government's Role

Anew Conception of the part the federal government should play in making proper medical care available to all citizens at reasonable cost, offered by President Eisenhower in a special message Jan. 18, provides the basis for legislation now being whipped into shape for action by Congress at the present session.

The Truman plan for a nationwide system of compulsory health insurance, to be administered by a new federal organization and financed by a federal payroll tax, never had a chance of adoption by Congress. The Eisenhower program is believed to be considerably more acceptable to the national legislators. It places chief reliance on the voluntary medical insurance plans already operating in many parts of the country. They would be strengthened and encouraged to extend their services through a system of government loans and guarantees which could be set up with relatively small amounts of federal money.

A principal feature of the Eisenhower program, not yet fully explained, calls for “limited federal reinsurance” of special risks of private and nonprofit health insurance organizations, thus to encourage them to offer broader protection to more families, particularly against the costs of illnesses which require prolonged and expensive treatment. The Treasury would supply a capital fund of $25 million.