Private Health Insurance in 1970: Population Coverage, Enrollment, and Financial Experience

THE PRIVATE HEALTH insurance industry in the United States is made up of three broad categories: Blue Cross and Blue Shield associations, commercial insurance companies, and independent plans. In 1970 these private health insurance organizations provided some protection to approximately four-fifths of the civilian population-against the costs of hospital care and surgical care. For 72 percent of the civilian population, private health insurance met at least part of the cost of physicians’ in-hospital visits. Out-of-hospital services were provided through private health insurance to smaller numbers: 142 million or 70 percent of the civilian population were covered for X-ray and laboratory services, 45 percent for physicians’ ofice and home visits, 50 percent for prescription drugs, and 6 percent for dental care. Private health insurance helped meet the cost of private-duty nursing care for 49 percent of the population, 53 percent were covered at least in part for visiting-nurse service, and 16 percent had coverage for nursing-home care. Insurance coverage for physicians’ office and home visits, dental care, and drugs is frequently subject to deductible and coinsurance payments ; consequently, the full cost of these health care services is almost never met through insurance. Most persons aged 65 and over have health insurance coverage through the Federal Government’s program of health insurance for the aged -Medicare. Complementary coverage for health expense not covered in full or at all by Medicare was held by almost 10.5 million or 51 percent of all aged persons for hospital care and by 10 million or 49 percent for surgical services. This article is mainly concerned with the number and percentage of the population under age 65 who have prepayment or insurance coverage of health costs through private health insurance organizations-Blue Cross-Blue Shield plans, insurance companies, community and employer-em-