MAJORITY REPORT.

in the National Health Insurance Act, 1924, which came into
operation on the 1st January, 1925.

PrEvVIoUs INQUIRIES INTO THE SCHEME.

11. We have spoken of the present inquiry as being the first
general and comprehensive investigation into the working of
the Scheme. There have, inevitably in a scheme of this
magnitude, been several inquiries into certain aspects of its
operation. Of these, two call for mention by reason of their
wider scope and their more general interest. The first was the
Committee which sat under the Chairmanship of Sir Claud
Schuster in 1913-14 to inquire into allegations that excessive
sickness claims were being made on the funds of Approved
Societies. The report of this Committee presents an interesting
account of the working of Societies at the outset of the Scheme
and of the difficulties of administration which confronted them.
Issued at the beginning of the War, and in consequence overshadowed
 by greater events, the report had less practical effect
than might have ensued had it appeared in happier circumstances.
 The other inquiry of considerable importance was that
which in 1916 reported on questions of Approved Society finance
and administration. This Committee, of which Sir Gerald Ryan
was Chairman, devoted a large measure of its attention to
questions of simplification, an end desirable in itself yet appearing
particularly desirable under the stress of war. The labours of
this Committee were reflected, as has been noted, in the very
considerable amending Act of 1918.

OUTLINE OF THE SCHEME,

12. A full description of the present legislative provisions
governing National Health Insurance, as contained in the Acts
and the Statutory Regulations and Orders made thereunder,
together with an account of the method of administration of
the Scheme in England, was supplied to us by the Ministry
of Health and is contained in Part I of the Appendix to our
Minutes of Fvidence. The same volume also contains statements
 supplied by the Scottish Board of Health and the Welsh
Board of Health respectively, showing the variations in those
countries from the position as set out in the Fnglish statement.
As these complete statements with regard to the law and the
method of administration of the Scheme are included in the
official record of our proceedings, we do not think it necessary
here to give more than the broadest descriptive outline of the
system.

13. The Scheme of National Health Insurance in this
country is on a compulsory and contributory basis. The persons
who are required to be insured are, subject to certain exceptions,
all those between the ages of 16 and 70 who are employed under