HEALTH INSURANCE

Wairarapa Times-Age, 18 August 1938, Page 8

HEALTH INSURANCE

EFFECT OF GOVERNMENT’S PROPOSALS POSITION OF WAIRARAPA BOARD. SUBSIDY SYSTEM CRITICISED. “It is obvious that unless some alteration is made to the existing system of allocating levy and subsidy, the reduction in local bodies levies, so far as this district is concerned, will not be very great, although a free hospital service will be provided,” stated the Managing-Secretary (Mr Norman Lee) in the course of a comprehensive report on the effect of the Government’s national health insurance scheme, submitted to yesterday’s meeting of the Wairarapa Hospital Board. “Regarding the financial position of the board,” added Mr Lee, “I wish to make reference to the proposed National Health Insurance Scheme, and particularly the suggested free Hospital services. The Select Committee which investigated the matter and reported to Parliament recommends that a uniform rate of payment from the Social Security Fund of 6s per day per occupied bed should be paid in full satisfaction of the cost of care given in hospital to any beneficiary of the Fund. The committee points out that the proposal will mean a payment of £lO9 10s per occupied bed per annum. This is more than double the amount received at the present time. “The committee’s report does not state whether 6s per day is to be payable for both adults and children, nor is any indication given as to whether pensioners of any description whatsoever will receive the benefits of the fund as well as their pension. Nor is any reference made to patients whose fees are chargeable under Section 92 of the Hospitals and Charitable Institutions Act. “If the payment of 6s per day or £lO9 10s per annum is made, on account of the 172 Wairarapa occupied, hospital beds then the total amount receivable for patients fees would be £18,834. I have-not included any fees which, may be received from the in-. mates of the Buchanan Home. At the present time we collect their pension and no mention is made in the Select Committee’s report as to whether they will be paid for at the rate of 6s per day. The report refers to treatment in public hospitals only More than 50 per cent of the patients in Buchanan Home are chronics and require continual nursing and hospital treatment. In fact, Buchanan Ward is similar to the chronic ward of other hospitals. This being so the question arises will the Social Security Fund.make a payment of 6s per day on account of these patients.” After stating that the estimated cash receivable from patients’ fees in the Wairarapa for the year ended March 31, 1939, was £11,925 as compared with £21.694 if all the patients paid 6s a day or £lO9 10s per annum,'* Mr Lee continued: “It will be observed that if payments were made at the rate of 6s per day patients’ fees collections would be increased, by approximately £9,769 per annum, which would reduce the net estimated expenditure, with corresponding reduction in levy and subsidy assuming, of course, that the system of allocating the deficiency between levy and subsidy will remain as at present. “Assuming that fees collections will be increased by a sum approximately of £9,769, then the net estimated expenditure would be correspondingly reduced to £35,410

“I cannot state to what extent the expenditure will increase, but it would appear from the position as it is today, irrespective of whether, a national health scheme is instituted or not, that patients treated in hospital are increasing year by year. In any case any innease in patients means an increase in revenue. However, if on account of ncreased patients payments the net estimated expenditure for maintenance purposes is to be reduced then some action should be taken regarding adjustment of valuation of this district, or the system altered completely to provide for a more equitable allocation of levy and subsidy. “When ascertaining levy and subsidy each year l/10th of the previous year's total estimated maintenance expenditure for the whole Dominion is proportioned in the ratio that the valuation of the respective districts bears to the valuation of the Dominion as a whole. This proportionate amount is added to 16/40ths of the net estimated

expenditure and the total represents amount to be levied on local authoritcs. Therefore the higher the valuation of the district the greater the amount -.0 add to 16/40th of the net estimated expenditure. Consequently, if the net estimated expenditure for this board is reduced then the reduction will not be equally borne between levy and ■ subsidy." Mr J. F. Thompson said it was a most important report. The present method of calculating the subsidy on local body levies was most complicated. The high capital valuation of the Wairarapa district, £231 millions, was 'o the detriment of the board. The more the board saved the more the local bodies had to contribute in proportion. That was wrong and did not eeem to be a just method of levy. Mr Thompson moved that the basis ,i fixing local body levies as against übsidy should be reviewed and a more equitable adjustment made whereby the local body levies would be brought nearer to the amount of .he Government subsidy. He did not see any reason why they should not oe on a 50 —50 basis. The chairman, Mr H. H. Mawley, agreed that the time was opportune to -■lace the matter before the Minister >nd the Department. The resolution was carried and the . hairman, Mr Thompson, and the Man-iging-Sccretary (Mr Norman Lee) were appointed a committee to place he position and the resolution before he Minister and the Department in :ompany with the members for Maserton, Wairarapa and Pahiatua elecorates.

It was decided to refer the question :f the Buchanan Home inmates to the hospital Boards’ Association.