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Subject: insur Fri, Feb 21 1992
Date: Fri, 21 Feb 92 06:00:50 EST
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DECISIONLINE: Insurance
USA TODAY Update
Feb. 21-23, 1992
Source: USA TODAY:Gannett National Information Network

REPUBLICANS SUBMIT PLAN:
   Rep. Porter Goss, R-Fla., and two other Republicans threw their
plan for improving the health care system in the USA into the
legislative ring Thursday. The bill's sponsors, which include Rep.
Dennis Hastert, R-Ill., and Rep. John Rhodes, R-Ariz., say that
while it is unlikely to pass, they hope some of their ideas will
eventually make it into a health care bill that passes.
(For more, see special Bill package below.)

REPORTS SAY DEATH WAS SUICIDE:
   A ruling reported in British Newspapers Friday that media baron
Robert Maxwell probably committed suicide means insurers will
likely not have to pay on a $35 million accident policy held by
Maxwell companies on his life. In November, the 68-year-old
millionaire was found dead at at sea after going overboard. The
newspapers said evidence pointed to suicide.

IMPLANT RESTRICTION RECOMMENDED:
   After hearings on silicone gel breast implant safety, an FDA
panel recommended Thursday that use of the implants for cosmetic
purposes be limited to clinical trials. The panel also said:
Implants can't be expected to last a lifetime; small amounts of
gel leak from all implants; ruptured implants should be removed;
women with problem-free implants have no reason to have them
removed.

LAWMAKERS AGREE ON LEGISLATION:
   Senate Democrats and Republicans are in agreement on one piece
of health care reform legislation that could make it easier for
small businesses to buy health insurance policies and the
uninsured to get coverage. Sen. Lloyd Bentsen, D-Texas, sponsor of
a bill to reform the insurance marketplace for small firms, said
he hoped to get the measure through Congress swiftly.

BILL HAS STRONG SUPPORT:
   A health care reform bill sponsored by Sen. Lloyd Bentsen,
D-Texas, which has 24 co-sponsors in the Senate, including
Republicans, would prohibit insurance companies from denying
insurance to people with existing medical conditions. The problem
has caused "joblock" for many people who risk losing medical
insurance if they change jobs.

RECORD FAILURES IN 1991:
   Insurance companies were among the type of firms hurt worst in
1991, leading to a record number of business failures, according
to a Dun & Bradstreet survey. Business failures jumped 44% to
87,266 last year, following a 21% jump in 1990, as the recession
and heavy debt took a toll on businesses. Failures among
insurance, financial and real estate related firms were up 53.5%
last year.

UNEMPLOYMENT CLAIMS RISE:
   The Labor Department reported Thursday that first-time claims
for unemployment benefits jumped 18,000 to 452,000 the week ended
Feb. 8., after two weeks of declines. The four-week average of
claims rose to 449,000 from 446,000. Claims above the 400,000
level indicate a recessionary economy. Analysts say claims may
grow, as unemployment could hit 7.5% before improving.

DAMAGE ESTIMATED AT $35M:
   Storms that dumped several inches of rain on Southern
California Feb. 9-12 caused an estimated $35 million in insured
property damage, according to C.E. Hermanson, vice president of
the Property Claim Services division of American Insurance
Services Group Inc. The estimate covers privately insured flood
damage to vehicles and other storm-related damage, such as leaking
roofs.

STRONG RESULTS REPORTED:
   Insurance Auto Auctions Inc. Thursday reported record revenues
of $41.8 million for the year ended Dec. 31, 1991, an increase of
16.7% over the previous year. Operating earnings were $4 million,
up 15.5%. Pro forma net income of $2.2 million was up 42.6 percent
from 1990, while pro forma per-share earnings of 35 cents were up
from 25 cents.

SPECIAL PACKAGE ON BILL:

HEALTH CARE BILL INTRODUCED:
   Rep. Dennis Hastert, R-Ill., said of a health-care bill he
co-sponsored, "It is one of the satellites we hope to put out
there that becomes part of the whole." "We need a plan ... based
on consumer choice, affordability, access and the highest quality
(care) available," said Rep. Porter Goss, R-Fla., another sponsor
of the bill, introduced Thursday.

SAVINGS ACCOUNTS IN BILL:
   Among proposals in the bill is one dealing with Medical Savings
Accounts. Instead of buying sweeping health insurance for
employees at an average yearly cost of $4,500, companies would
spend $1,500 to buy a major medical policy with a high deductible.
Firms would deposit $3,000 in an account for each employee, to be
used for medical bills not covered under their new, higher
deductible.

CAP ON DAMAGES AMONG PROVISIONS:
   The health care bill has three other main provisions. It
proposes that purchases of health insurance to cover long-term
care for the elderly or chronically ill be made tax deductible. It
also seeks to make malpractice suits less attractive by putting a
cap on damages collected for "pain and suffering." Finally, it
proposes making insurance more affordable for small businesses.
(End of package.)

Insurance Editor: Jason Smith. (1-919-855-3491) Making copies of
USA TODAY Update (Copyright, 1992) for further distribution
violates federal law.

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