Mr. NORRELL. Before we go any further I want to offer my congratulations and the congratulations of the full committee, because that is a wonderful record you have made.

Mr. BUCKLEY. Thank you. It was made possible by the fine people who work for us. I cannot claim too much of the credit for it.

REQUESTED INCREASES

We are asking, Mr. Chairman, in view of the unprecedented increase in sales orders, which is now 23 percent ahead of the comparable period last year, for resources to employ 25 additional employees. That is the major share of the increases we are requesting. Of the additional amount requested, $217,825 is for personal services. We have not been able to keep up with the rate of increase in sales orders by giving the type of service the public has a right to expect, and we hope by asking for this authorization to provide those full-time and part-time employees, to be able to do better in the fiscal year that is coming up.

Mr. NORRELL. And you really and truly think you need it?

Mr. BUCKLEY. We certainly do, Mr. Chairman. We have waited as long as we could, hoping we would be able to get by without requesting this increase, but it is evident we will not be able to get by another year.

We are asking for an additional $5,000 for "Communication services." That is something that usually increases as the volume of work increases because of the increase in the official correspondence and the additional postage we must pay to the Post Office Department. There is an increase under "Printing and reproduction" of $25.000, which is requested to enable us to produce more pricelists of publications. This is something, Mr. Chairman, we are having to curtail toward the end of this year, but it is a very important part of our program to let the public know what the Government is issuing and what is available for purchase.

Under "Other contractual services" we have an increase of $27,800, because this year, for the first time, we must estimate what we will need to cover the Government's share of the cost of providing employee health benefit plans under the Federal Employees Health Benefits Act of 1959.

Finally, we have the usual item which also increases as our volume of work increases, and that is the office supplies and mailing materials that are required to mail out the approximately 50 million publications a year that we sell and the many more that we have to distribute for the other agencies of the Government.

The final item of increase is the contribution of 612 percent of the salary expenditure to the civil service retirement fund pursuant to title IV of Public Law 854 of the 84th Congress, 2d session. This is an item of $8,225.

Mr. NORRELL. That is by law anyway?

Mr. BUCKLEY. That is right, Mr. Chairman.

Mr. NORRELL. Any questions?

Mr. HORAN. I have no questions. That is a very good report.

Mr. NORRELL. I want to say, again, that I appreciate your splendid statement and the fine record that you all have made.

Mr. BUCKLEY. Thank you, Mr. Chairman.

We realize we have a program which lends itself a little more to making a good showing than some, but we certainly appreciate again the great assistance that you and the staff of the committee have given us, and it is always a pleasure to be here and appear before you. Thank you very much.

WEDNESDAY, APRIL 27, 1960.

HOUSE OF REPRESENTATIVES

WITNESSES

RALPH R. ROBERTS, CLERK, U.S. HOUSE OF REPRESENTATIVES HARRY N. MEGILL, ADMINISTRATIVE ASSISTANT TO THE CLERK ROBERT H. HARPER, ADMINISTRATIVE ASSISTANT TO THE CLERK FOR BUDGET AND FINANCE

Mr. NORRELL. The committee will come to order.

We now come to that part of the bill which covers the expenses of the House of Representatives and certain joint items. As customary, we will not take up items relating solely to the Senate. We have Mr. Ralph Roberts, the Clerk of the House, before us. We will be glad to have your statement, Mr. Roberts.

GENERAL STATEMENT

Mr. ROBERTS. Mr. Chairman, I am glad to appear before your subcommittee as I have on many previous occasions to present to you the legislative budget for the House of Representatives for the fiscal year 1961.

As has been the custom in the past, I will present to you the budget from the various officers of the House as requested by them, together with such justifications therefor as were submitted to me.

I shall, of course, be glad to answer any questions I can relative to the figures presented by the other officers of the House; however, should you desire specific information concerning the operation of any office outside of the jurisdiction of the Clerk, I respectfully request that the appropriate officer under whose jurisdiction the activity comes be called personally to answer your questions.

Insofar as the Clerk's office is concerned, I have, in my prepared statement which will follow in regular sequence, detailed information which I trust will be satisfactory; however, I will be glad to answer any questions you may have.

Mr. NORRELL. When was this budget prepared?

Mr. ROBERTS. We prepared it last October.

Gentlemen, the budget which I present today for fiscal year 1961 is one of the least complicated I have ever brought before you.

We are asking essentially for the same amount we asked for last year, with very few exceptions, upon which I will comment as I reach them in my detailed statement.

54877-60-16

HEALTH INSURANCE PROGRAM

The principal new item in the House budget from an overall standpoint is a request for funds to meet the House of Representatives' contribution to the health insurance program which, as you know, goes into effect on July 1.

At the time the budget was prepared we had very little information on which to base an estimate of the cost of the program but the amounts requested, I believe, will be sufficient to cover the Government's contribution.

I wish to point out that this program will add a substantial administrative burden to the Clerk's office but I hope that I can provide the necessary personnel therefor from within the limitation of funds previously given to the Clerk.

I am placing the responsibility for the administration of the program in the personnel section of the Disbursing Office. Plans are already well underway to set up the program under the act, consistent with the rules and regulations promulgated by the Civil Service Commission.

Should I find the administrative burden too great to handle within the current request, I shall be forced to come to you for additional funds to hire the necessary people.

Mr. NORRELL. Will you add more people to handle that work, or do you plan to try to do it with present people?

Mr. ROBERTS. I plan to carry out the program with the people I have. If it becomes impossible I shall be forced to come to you for additional funds.

Mr. NORRELL. What funds do you now have available to do that? Mr. ROBERTS. The lump-sum fund in the Disbursing Office. There are two other lump-sum funds; one for clerical assistants in the Clerk's Office and the administrative assistant's lump sum.

Mr. HORAN. Mr. Chairman, is this item open for discussion at this point?

Mr. NORRELL. Yes.

Mr. HORAN. I have a couple of questions. Will this appropriation for health insurance be on a fiscal year basis?

Mr. ROBERTS. Yes; just like the other.

Mr. HORAN. Some of the other items are on a calendar year basis. Mr. HARPER. Some of the allowances are on a calendar year basis but the appropriations are on a fiscal year basis.

Mr. RORERTS. Suppose I go a little further.

The health benefits program, effective July 1, 1960, will apply to Members of Congress and all employees of the House of Representatives (except those employees of the folding room paid on an hourly, intermittent basis).

It is a voluntary program, partly paid for by the Government as the employer, to protect Members and employees and their families against costs of illness and accident.

I have a more complete statement covering the general provisions of the act which I request be inserted in the record at this point. Mr. NORRELL. Who would be eligible?

Mr. HARPER. These brochures give the details of the major plans; the two plans. They have not been distributed yet. They are very complete as to what the various plans provide.

Mr. NORRELL. On what date did the health insurance bill pass? Mr. ROBERTS. It was Public Law 86-382, approved September 28, 1959.

CALCULATION OF COST OF HEALTH PROGRAM

Section 7(3) (c) of Public Law 86-382 provides that the sums authorized to be contributed by the Government toward the cost of health insurance coverage for House employees shall be paid from the contingent fund of the House. The amount of $200,000 requested for this purpose was arrived at by presuming that 85 percent of our approximate 3,800 eligible employees would elect to participate. The Civil Service Commission has suggested that for the purpose of planning budget requirements we assume that 60 percent of the employees will enroll for family, at the cost of $81 per year; and that 40 percent will enroll for self only, at the cost of $34 per year.

HEALTH PROGRAM BENEFITS

The health benefits program, as authorized by Public Law 382, 86th Congress, 1st session, will go into effect July 1 of this year. It offers an opportunity for Members of Congress and all employees of the House of Representatives except employees of the folding room paid on an hourly, intermittent basis to join a group health benefits plan with better rates and better protection than are purchasable as an individual, regardless of age or physical condition. It provides basic coverage plus major "catastrophic" benefits that go beyond usual costs of surgery and hospitalization to help finance chronic, long-term, or serious illness or accident.

The program offers a choice of plans, to provide the kind and amount of protection an employee actually needs and wants. All Members and employees will be eligible to select either the governmentwide service plan or the governmentwide indemnity plan; each of these plans will have two options, one offering a higher level of benefits at a higher cost, and the other offering a lower level of benefits at a lower cost. An employee organization plan is available to employees who are members of such an organization which offers an approved plan. If the employee lives or works in a geographic area where an approved comprehensive plan is available, he may select such group-practice or individual-practice prepayment plan. All plans will offer benefits fairly related to their cost; the right to convert from group plan to an individual contract; temporary extensions of coverage to allow time to convert; the same benefits, at the same cost, for eligible annuitants as for active employees; and the right, at certain times and under certain conditions, to change from one plan to another.

The subscription rates and the amounts of medical costs paid by the program will depend upon the plan chosen. Most plans will cover some but not all of the costs of hospitalization and of surgical and maternity care. The kinds of expenses covered, and how well they are covered will vary, however.

All Members and employees will be given detailed information on the specific benefits of the various plans-and options-available under the program, and will be urged to compare carefully the benefits and costs of the plans so that they can make an informed choice. Registration will begin about June 1.

The Office of the Clerk will provide counseling services for the employees and the Office of the Sergeant at Arms likewise for the House Members. We request that Members and employees consider carefully their family's health-care needs, the specific benefits and costs of each plan, what each can afford to pay, and then pick the plan that appears best suited. The benefits of this program are real, are substantial, and offer an extra measure of family security.

We cannot overemphasize the urgency of prompt registration and respectively request each Member's concern and cooperation in urging their employees to register prior to the effective date, July 1.

For the information of the committee, I was able on Saturday to obtain a few advance copies of the governmentwide indemnity benefit plan and the government wide service benefit plan, which will undoubtedly be the plans most certainly used, and I am glad to leave a few copies with you.

Mr. HORAN. If you will permit me to comment, this matter of prepaid health and hospital assistance is not new. It is not alone a matter of the Government. In the State of Washington we have any number of county medical services who urge people to take this sort of protection. It is also protection for the doctors and the hospitals. It makes certain there are some funds there when they perform the services. The wide use of insurance programs such as Blue Cross and Blue Shield indicate the idea of a prepaid health and medical service in the United States is not new. One of the criticisms of some of the measures now pending before the House is that they are discriminatory; that they do not cover everyone. I do not think we are going to cover everybody in the United States with prepaid medical and health insurance. We can go back to the Bible and read where the Saviour said that the poor we will have with us always. We manage in the United States to take care of them in one way or the other. That is one of the reasons hospital fees have had to go up. They are required to take in anyone who is sick and do the best they can. I think that is about as good an answer we can get on this. Meanwhile we have the program we are going to start on July 1, and we are here now trying to figure out how we are going to make it work, and work fairly and justly for all concerned. Thank you for allowing me to comment.

Mr. NORRELL. If you have any further questions on this, Mr. Horan, this might be as good a time as any to ask them.

MECHANICS OF ADMINISTRATION

Mr. HORAN. I would like to know what you presume will be the way this program will function mechanically after July 1. Let us say somebody gets sick July 2. What do we do? How do we determine whether they are really sick?

Mr. HARPER. The mechanics, insofar as the Clerk's Office is concerned, will be this: During the month of June we will contact each individual employee of the House of Representatives to ascertain one of three things; one, that he wishes to participate in the plan; or that he does not wish to participate in the plan, and if he wishes to participate ascertain from him which plan he chooses to go under. We