Medicine: 7c Per Family

The Associated Hospital Service of New York which showed 197 hospitals in the metropolitan area how to make money by charging potential patients only 3¢ a day (TIME, April 6), last week further cheapened the cost of profitable hospitalization. Henceforth a man (or woman) whose employer will deduct the premiums from his wages can insure self and spouse against big hospital bills by paying 5¢ a day, can insure self, spouse and all children under 19 years of age for 7¢ a day.

The economic formula is simple. Insurance statistics and 16 months’ experience of the Associated Hospital Service and similar services in 60 other U. S. cities show that employed individuals and their families are healthier than the rest of the population and on the whole are so seldom sick that yearly insurance premiums of $10 for one, $18 for two, $24 for a family provide more than enough money to pay the hospital bills of the entire group. The New York service’s 129,716 members have paid $1,050,700 fees.

A new stipulation put into effect last week: a woman must belong to the service at least twelve months (instead of ten months as heretofore) before she may receive free maternity service of delivery room, semiprivate bedroom, food and nursing for herself and infant. Reason for lengthening the time limit: “To end the appeals from prospective parents who wanted us to stretch a point in their favor.”