HC Deb 10 March 1938 vol 332 cc2099-101
42. Mr. J. Griffiths

asked the Minister of Health whether he is aware of the growing concern felt by a large number of the smaller approved societies operating under the National Health Insurance Acts at the loss of membership to the larger and richer societies, who are able to offer inducements to insured persons to transfer because of the wider range of additional benefits offered; and whether he will now inquire into the possibilities of co-ordinating the health insurance services so as to ensure that all those who made equal contributions shall secure equal benefits under the State insurance scheme?

Sir K. Wood

I cannot agree that the smaller approved societies are ordinarily at any disadvantage as compared with the larger societies as regards the additional benefits which they are able to provide for their members. Insured persons have freedom of choice of society and it is only to be expected that some will seek to transfer from societies with relatively unfavourable valuation results to others in a more favourable position. There is, however, already statutory provision for the protection of the weaker societies against undue loss of membership by transfer and the position is not, in my opinion, such as to call for the course suggested by the hon. Member, which would involve, amongst other consequences, the abolition of the approved society system.

Mr. Griffiths

Does not the right hon. Gentleman think that it is desirable and even necessary that those who contribute equally to a scheme of this kind should get equal benefits, quite apart from the effect of this disparity of additional benefits on the smaller societies and upon those who remain loyal to the smaller societies; and does he not think that the time is opportune to make a complete inquiry into the possibility of establishing a co-ordinating scheme which will give equal benefits to everybody?

Sir K. Wood

No, Sir. Because a society is small it need not necessarily have a bad experience. Very often the difference, as far as the small societies and the large societies are concerned, is very small.

Mr. Griffiths

Is the right hon. Gentleman aware that the small societies, particularly in depressed areas and because of the depression that has existed, fail completely to keep up with the additional benefits that can be given by the larger societies?

Sir K. Wood

That is a different category of case.

Mr. Jenkins

Is the right hon. Gentleman aware that a large number of smaller societies whose members come from the industries where the incidence of sickness and accident is high are unable to grant benefits equal to the benefits of the societies in more favoured circumstances, and will he do something in order to try to bring about an equalisation of benefits?

Sir K. Wood

There are certain matters in the National Health Insurance Acts with which, I dare say, the hon. Gentleman is acquainted, but I cannot give any approval to the suggestion that he has made for the abolition of the approved society system.

Mr. Griffiths

Owing to the unsatisfactory reply and the importance of this question, I beg to give notice that I shall raise the matter on the Adjournment at the earliest possible opportunity.