MEDICAL BENEFITS AND COSTS

Dominion, Volume 34, Issue 135, 4 March 1941, Page 6

MEDICAL BENEFITS AND COSTS

. Thi objections to aiid difficulties in the way of attempting to introduce the proposed panel system of medical benefits in the conditions which prevail in the Dominion today have been so fully and so frequently explained that it must be fairly. obvious to most people that there is little likelihood of any practical advantages to the public resulting, from the Government’s scheme. One aspect which has received inadequate attention is the question of costs. It is becoming increasingly evident that the financing of the proposals put forward would entail still further taxation—yet another drain on wages and earnings at a particularly inopportune time. Exactly what the whole scheme if it were put into operation would cost no one has seriously attempted to show. The latest figures of the Social Security-Account, which cover the first nine, months of the current financial year, go to show that the expenditure in that time had already exceeded the income by over £1,400,000. This, of course, without any.general.practitioner benefits at all. Income grew by £1,080,000 in the nine months, when compared with the corresponding period of last year, but expenditure moved up by £1,540,000 in the same time. Prior to December 31 the sum of £1,300,000 had been transferred from the Consolidated Fund to this special account, and it looks very much as though the full authorization of £3,200,000, by way of transfer from taxation, will be needed. Had there been even a partial medical .service, chargeable to this special fund, the position would have been embarrassing. In the coming year, assuming that this extra service were provided, and that it cost £1,200,000 —although on a 15/- basis it would undoubtedly cost more—where is the Minister going to obtain the funds? That seems a basic question, but it has not yet been dealt with by any member of the Government. The Minister of Finance did say that the money would be provided, but he did not say how it would be obtained. It is already evident that the scheme must depend more and more upon the-Consolidated Fund, and if the medical benefits weie available now there would be difficulty in meeting the position. Yet these are days of expanding national income, due to the war and other factors. What will be the position when, as the Minister of Finance evidently,,fears, prices may fall rapidly? If the Social Security scheme is proving costly on a rising national income how will it be financed on a falling income?