Hoxha stated in late 1969 that 185,000 flats and houses had been built since World War II. The average annual rate of construction, as indicated by incomplete reports for the 1960s, was 6,000 private dwellings and 3,000 state-owned and cooperative apartment units. Total requirements were not stated, but with annual population growth at approximately 40,000 to 50,000 persons, and considering reports relating to crowded conditions, the critical condition was unresolved. Hoxha stated in late 1967 that the housing situation had reached the point where in some instances five persons were living in one room. Most rural houses are of one or two rooms, with a hearth, and are of simple construction. They are small and sparsely furnished. Many are made of natural rock or stones. Urban houses and apartments are usually small and lack central heating. Kitchen and toilet facilities in apartments must be shared by three or four families. Social Insurance The social insurance program is administered by state organizations and covers medical care, compensation for incapacities, old-age pensions, family allowances, and rest and recreation. Social insurance was introduced in 1947. Several modifications were made later to the basic program. The law of 1953 provided a program closely resembling that of the Soviet Union, and for a number of years, following the Soviet example, trade unions administered a large number of social insurance activities. In 1965 the state assumed the administration of all phases except those for rest and recreation facilities. The social insurance program, as provided for in the Council of Ministers decision of September 13, 1966, and effective January 1, 1967, included benefits for workers, employees, and others. Peasants in the collectives were not included in this law, but similar welfare benefits were provided from funds established by their organizations. The 1966 law continued the policy announced in 1964 that free medical care was provided to everyone. Drugs, such as penicillin and antibiotics, and vitamins prescribed during outpatient treatment had to be paid for by the user. Funds for social insurance payments came from the state budget. Contributions were paid by state institutions and enterprises that were in the role of employers.