MAJORITY REPORT. 
CHAPTER VII. 
THE FINANCIAL RESOURCES OF THE HEALTH 
INSURANCE SCHEME. 
154. One of the most important points confronting us in the 
course of our investigations relates to the question whether the 
whole of the present financial resources of the National Health 
Insurance system are in fact required to provide for the existing 
benefits and the related cost of administration, or whether, as 
has been urged from some quarters and notably by the National 
Confederation of Employers’ Organisations, there is an appreci- 
able margin which might be made available for other purposes. 
As we have seen in the preceding chapter, the Employers’ 
Confederation advocate very forcibly a substantial reduction in 
the rates of contribution. On the other hand, many responsible 
witnesses press for extensions of benefit in various directions. 
Before we proceed to examine this important question of the 
margin, it will be helpful to give a brief account of the financial 
structure of the Scheme. 
THE FINANCIAL STRUCTURE. 
155. This need be attempted only in the broadest outline, as a 
detailed description of the financial machinery and of the 
numerous accounts relating to National Health Insurance is given 
in Section D of Appendix I to our Minutes of Evidence. That 
statement has been supplemented by oral examination (Q. 2127 to 
2543) which revealed nothing of a substantial nature lending itself 
to adverse criticism. The financial machinery is undoubtedly 
elaborate in character and thus may offer difficulty to society 
officials untrained in accounting problems. But we are told that 
the actual work is not so complex as would appear on the surface 
(Strohmenger, Q. 2448), and that the Department strives to 
effect all possible simplification. In our opinion the arrange- 
ments are well devised and in general the machinery appears 
to work smoothly and effectively. 
156. The revenue of the Scheme is derived from contributions 
and State grants. The contributions are in the main paid by 
affixing Health Insurance stamps to cards which have a currency 
of six months. For this purpose about £500,000 worth of stamps 
on the average are purchased week by week, by employers 
at Post Offices. The value of the stamps sold amounted in the 
year 1924 to some £27,000,000, and since the beginning of the 
Scheme in 1912 to the end of 1924 the receipt from sales of 
stamps amounted to upwards of £250,000,000. The Post Office 
pays over weekly the amount of these receipts to the respective 
National Health Insurance Funds. Employers on whom is 
imposed the responsibility for paying the full contribution affix