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What happens when arrangements are made to provide medical and hospital services on an insurance basis without sufficient actuarial data is clearly told in a news release from the Associated Hospital Service of New York. The new agreement which the Associated Hospital Service is making with its subscribers is based on a study of the four years experience of the service; it embodies several new limitations and some liberalizations of the former contracts.
About 57,000 contracts with subscribers who enrolled through individual instead of organized group applications are to be terminated. This was announced recently as a result of this study, which indicated that under past enrolment procedures a proper distribution of risk was not provided.
Three types of contracts are to be issued: one for individuals, one for husband and wife, and one for a family group consisting of husband, wife and all unmarried children less than 18 years
ASSOCIATED HOSPITAL SERVICE OF NEW YORK REVISES ITS CONTRACTS. JAMA. 1939;113(8):682–683. doi:10.1001/jama.1939.02800330048014
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