HEALTH INSURANCE

Evening Post, Volume CXXI, Issue 129, 2 June 1936, Page 10

HEALTH INSURANCE

NATIONAL SCHEME FRIENDLY SOCIETIES MINISTER'S ASSURANCE

Aji assurance was given friendly, societies by the Hon. W. Lee Martin c (Minister m Charge of the Friendly t Societies Department) when he ad- , dressed the Dominion Council today, j. that, whatever national scheme cover- j ing sickness, invalidity, widows", and i old age pensions, cither separate from t or combined with a national health insurance scheme, might eventually be , formulated by the present Government, t they will not suffer and that full oppor- t tunity will be given them to make re- 1 presentations regarding the part their ] organisations will fill in a national i scheme. The experience of the recent , depression, he pointed out, had indi- . cated the danger that might result ( when members were unable, from . forces outside their control, to continue . contributions and thus lose the benefits ; for which they were covered. |: Tracing the progress of friencuy societies in New Zealand during the last fifteen years, the Minister said that membership had increased over y ■ per cent., from 70,000 to 100,000; funds! had increased 114 per cent from just; over £2,000,000 to over £4,500,000; and, the capital from nearly per head to over £46 per head, an increase of nearly 50 per cent . DuiJ ing the last fifteen years the very huge, sum of £4,423,615 had been disbursed I to members, made up as follows.—| Sickness benefits, £1,853,036; funeral, benefits, £509,636; and medical attenUon and medicine, £2,060,943. It had to be remembered that the material benefits not only provided for the individual member, but were extended to his family and his dependants. It may safe™ be said," added Mr. Marto, "that the total number of persons in the Dominion who are directly interested in the welfare of friendly societies cannot fall far short of 300,000:' IMPROVED FINANCES. "In 1909, when the Friendly Societies' Act was passed," said the Minister, "a large proportion of the societies were attempting to offer benefits in excess of what could normally be provided by the scale of contributions ' charged, and valuation deficiencies ' were more common than surpluses. At ■ the present time, friendly societies wita ■ deficiencies are rare, and the improve- ■ ment has been effected without 10 ' pudialion of liabilities." \ i The improved financial standing of, ■'friendly societies in New Zealand had i been brought about, suggested Mi. ' Martin, by the application of an acluar- ■ ial test to contribution scales for all • benefits and to all amendments ot rules - likelv to disturb the finances. Societies, ■ he thought, did appreciate the attitude ! that while no compulsion was exercised t to force improvements on them, they ■ were at least protected from retrogrest sion. It must be gratifying to all - concerned that the financial improyc- ■ ment of friendly societies generally s had been'due to voluntary action on - their part in increasing the scales ot 3 contribution _ following departmental i recommendations. : Then there was the compulsory ie-1 , quirement that all valuations should i be made by the Friendly Societies t Department. It was unnecessary to 1 stress the advantages of such a praci- tice compared with the employment of private valuers, few of whom would be properly qualified to deal with such a very delicate matter as the financial obligations of an organisation whose benefits were in the main deferred. "Any opposition that there' may have been in the past to the periodical statutory valuations has long since disappeared and friendly society executives would, I think, be the first to admit the value of having presented to them the lessons of past experience together with an assurance that they will have available all possible guidance in at taming the objects for which the societies were formed," said the Minister.

THE GOVERNMENT'S SCHEME. In his presidential, address, Mr. C. H. Bascand (Christchurch) expressed some concern as to the future of tncndiy societies in the Dominion if the Government proceeded with its suggested scheme of State health insurance "There arc one or two questions associated with the proposals which will come before this country, as it ulans to nationalise this social service, 'which are of vital importance to us and to which a brief reference might be made," he said. "What will be the [position of the existing societies in coni ncction with the administration of the | proposed national health scheme? 1 i believe we can say that all our cxjpcrionce and machinery is at the disposal of the Government in this matI ter if it is required. We are prepared ito do all that we can to ensure the i efficient administration of the new I scheme. Exactly what is or will be required from the existing societies no one at present can say, but surely it may be taken for granted that all societies that would be approved of by the Government would be given certain latitude to carry on. . . . "1 understand that our present Government is endeavouring to bring down a very comprehensive State insurance scheme to deal with sickness, pensions, etc., and it seems clear that any prospective develonments to deal with these will be on a contributing basis. This being so, we cannot raise any objections to such a basis, but the policy of this council should be to see that the present friendly societies' basis of administration be adhered to as far as possible."