Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.insur From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: insur Thu, Feb 20 1992 Date: Thu, 20 Feb 92 06:16:57 EST Message-ID: DECISIONLINE: Insurance USA TODAY Update Feb. 20, 1992 Source: USA TODAY:Gannett National Information Network BENEFITS TIED TO FITNESS: Dan Houston is finding that being thinner through the hips also means being thicker in the wallet. Houston, who works for The Principal Financial Group, and his wife will save $240 in health insurance premiums this year because neither smokes and both are exercising regularly, watching their weight and keeping their cholesterol and blood pressure levels in check. (For more, see special Benefits package below.) EXECUTIVE LIFE GETS NOD: Rejecting challenges to the competitively bid sale of Executive Life Insurance Co., a judge Tuesday issued an order giving final approval of its purchase by MAAF subsidiary Aurora National Life Assurance Co. and Altus Finance. The decision removes the last judicial hurdle for California Insurance Commissioner John Garamendi's plan to capitalize the new company. POLICYHOLDERS WILL GET PAID: The court's action permits transfer of the majority of Executive Life's junk bond portfolio for a cash payment of $3.25 billion and paves the way for the transfer of policyholder obligations from Executive Life to Aurora. When the transfer is made, MAAF will inject $300 million in capital into the company. Officials say over 95% of policyholders will receive 100% of their contract values. HEALTH CARE SECOND IN N.H.: Health care and national health insurance were the second most important election considerations of New Hampshire voters, participating in the presidential primary, according to a Kaiser:Harvard:KRC survey. Behind economic concerns, health care and insurance outranked taxes by two to one and education by four to one. It ranked second among both Democrats and Republicans. INSURERS WILL BACK VICTIMS: If the Food and Drug Administration bans silicone gel breast implants, most U.S. women with implants won't find their medical benefits curbed by insurance companies, shows a spot check of major health insurers. If the FDA strongly challenges implant safety, some may even get expanded coverage, such as payment for removal, even if they have no implant problems, insurance companies say. COURT OVERTURNS CAFE STANDARD: A federal appeals court Tuesday overturned the government's 1990 auto fuel economy standard. Ruling: The National Highway Traffic Safety Administration illegally ignored the Corporate Average Fuel Economy program's effect of restricting the availability of larger, more crashworthy cars. The ruling invalidates the agency's decision to maintain the 1990 standard at 27.5 mpg. CAFE PROGRAM KILLS: A number of recent studies have demonstrated that CAFE increases traffic deaths by restricting large car production. A 1989 Harvard-Brookings report found that the 27.5 mpg standard causes 2,000 to 4,000 occupant fatalities in a single model year's fleet. Studies by the Insurance Institute for Highway Safety and NHTSA confirm CAFE's effect. BURROUGHS TO CUT DRUG PRICES: The Burroughs Wellcome Co. says it will reduce prices for its prescription medicines, including AZT, to certain public health clinics financed by the federal government. The new prices will take effect March 1. The pharmaceutical industry has been under increased scrutiny from critics who say drug makers profit on expensive drugs that only the insured and the weathy can afford. MEDICAL ERRORS KILL 155,000: About 155,000 Americans die in hospitals each year as a result of preventable medical accidents such as drug overdoses and infected wounds, a new study suggests. That's roughly three times the number of people killed in traffic accidents. A 1990 Harvard study found that one in 25 hospital patients in New York suffers an unintended injury caused by treatment. SPECIAL PACKAGE ON BENEFITS: EMPLOYEES SHARE IN SAVINGS: The Principal is one of a growing number of companies giving employees who adopt healthy lifestyles a break on their health insurance payments. The idea of offering lower insurance premiums to healthy employees is based on the assumption that fit employees file fewer medical claims, thus saving the company money. Employees who qualify for the discounts share in the savings. HY-VEE OFFERS INCENTIVES: This year, for the first time, Hy-Vee Food Stores Inc. of Chariton, Iowa, is offering lower premiums to non-smoking employees and insured spouses. "We've been doing a lot with our benefits plan not only to encourage health among our employees but also to contain cost," said Hy-Vee spokeswoman Ruth Mitchell. "If their own health isn't a good motivator, maybe money will be." HEALTHY LIFESTYLE MEANS MORE: At Hy-Vee, employees and their spouses qualify for discounted premiums if neither has smoked in the last six months. The Principal also instituted discounts for non-smokers first, giving a break of $5 per month for the employee. This year, it added additional discounts for workers who wear seat belts, keep their weight down and exercise regularly. (End of package.) Insurance Editor: Michele Coleman. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 08:0002200000D0220 INTE- R D Rabin-takes-party-from-Peres.......... A D0220 This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM