OCR Interpretation


East Cleveland leader. [volume] (East Cleveland, Ohio) 1942-1970, March 05, 1959, Image 4

Image and text provided by Ohio History Connection, Columbus, OH

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn83035682/1959-03-05/ed-1/seq-4/

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29J7
1939
SPONSORED BY THESE
NON-PROFIT HOSPITALS!
The broad protection against hospital bills provided by Blue
Cross contracts was reviewed. The Blue Cross comprehensive
contract. M-104, in accordance with its terms, pays the
hospital bill for its subscribers not $10.00 or $15.00. or even
$20.00 a day toward the bill but all of it, for the type of
accommodation and service it provides. This is the health
protection people have sought for years. More than 1,770.000
in Northeast Ohio are protected by Blue Cross.
2
Independent auditors and accountants reported that Blue
Cross, in the first 9 months of 1958, paid hospitals for service
to subscribers nearly two and one-half million dollars more
than subscribers paid in to Blue Cross. New rates were needed
to offset this loss and provide for future hospital care to
Blue Cross subscribers.
3
Blue Cross rates are made up of only two costs. First, the cost
of operating Blue Cross itself. Second, the cost of present
end future hospital care for Blue Cross subscribers. Out of
each dollar paid in, just over 3 cents is required to operate
Blue Cross. Just under 97 cents is paid to hospitals for cars
of Blue Cross subscribers.
4
The cost of operating Blue Cross of Northeast Ohio was cars*
fully reviewed. The chart below was the summary.
BLUE CROSS
of
Northoait Ohio
ADMINISTRATIVE
COSTS (omncome)
MP
It wav pointed out that Blue Croat of Northeaat Ohio
it tope in ita league, operating at lower coot than MJ
oomparable plan in the teantrj.
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TheWHYof
Blue Cross
That you may know and understand, here are the highlights
from the public hearing on the new Blue Cross rates held in Cleveland
December 8,1958 by the Ohio Department of Insurance.
The costs our hospitals have in providing service to Blue
Cross subscribers were then carefully reviewed. The chart
below shows what has happened to these costs.
BLUE CROSS PAYMENT PER PATIENT DAY
6
There have been many questions about hospital costs. These
ere reviewed in much more detail than space here permits.
The two important points brought out were: First, hospital
costs are made up largely of wages and second, wages have
increased steadily in this Northeast Ohio Community. Actu
ally, wages make up more than two'thirds of hospital costst
as illustrated by this chart.
PERCENTAGE OF TOTAL
HOSPITAL COST PAID
FOR SALARIES---
14 CLEVELAND HOSPITALS
Ml
MS
1934 39
•49 •50
57
Machinea cannot replace the dedicated care given
by people to people, if the tick art to be reetored to
health by our hoapitala.
7
As all wages go throughout the community so also go hospital
wages and costs, because hospital workers must buy the goods
and services that other workers produce in our factories, on
farms, in construction, and in retailing. The chart above right
chows the year-by-year trend in wages in Cleveland since 1938.
•LBVKLANM
SUBURBS
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490
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JOO
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BORTNBAST ORIS
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AVERAGE MONTHLY EARNINGS
1943
1930
rates
IN CUYAHOGA COUNTY
8
While the actual amount of the new Blue Cross rates was
recommended by the auditors and actuaries, who are expert in
this field, these rates were not set arbitrarily, nor were they
“one man’s idea**. Months of careful study had gone into their
making. Leaders in business, in labor organizations, in the
medical profession, in hospital management, and the Trustees
of Blue Cross had spent in total thousands of hours studying
the need for new rates.
All had agreed that Blue Cross rates must, for the protection
of its subscribers, be such as to meet, without loss, the cost
of hospital service to Blue Cross subscribers in 1958, and the
estimated costs in 1959 and I960. The Ohio Department of
Insurance, after careful study and this public hearing,
approved the new rates.
9
New rotes, contracts and benefits.
As all group and individual subscribers have been informed,
the new rates and contracts are as follows:
jh. Ths 120-dayo of hospital cars, comprehensive contract M-164,
that pays all your hospital bill, as specified, at monthly
group rates for semi-private room service of $5*30 for one
person, $10.60 for a family, or monthly direct payment rates
of $6.90 for one person, $13.80 for a family.
B. The 120-day deductible contract, M-182, in which the sub
scriber pays for the first $50.00 worth of Blue Cross benefits,
and 20 per cent of charges above $250.00, at monthly group
rates for semi-private room service of $4.10 for one person,
$8.20 for a family, and monthly direct payment rates of
$5.30 for one person, $10.60 for a family.
The choice between the comprehensive and the deductible
contract is a matter for each group to decide as a whole. If
75 per cent of the group decides on deductible coverage, it
is furnished to the group.
Blue Cross does things the economical way. For example, the
cost of publishing this information in 45 Northeast Ohio
newspapers is less than one-half cent per Blue Cross member.
We know of no other way to provide accurate information to
all members at such low cost, and certainly providing in
formation to members is part of our job.
VrMM MB Write for the Blue Crow Booklet of *‘Answers
on Blue Cross rates, hospital costs and use of hospitals**. Address: Blue
Cross of Northeast Ohio. 2042 East Ninth Street, Cleveland 15. Ohio.
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