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 Wed, Mar 18 1992 Date: Wed, 18 Mar 92 05:44:27 EST Message-ID: 03-18 0000 DECISIONLINE: Insurance USA TODAY Update March 18, 1992 Source: USA TODAY:Gannett National Information Network SIIS PROPOSES 22% HIKE: Nevada employers would be hit with a record 22% hike in industrial insurance rates under a plan detailed Tuesday by the head of the State Industrial Insurance System. The plan was opposed on a 4-2 vote by SIIS directors. But Donald Jayne, the system's general manager, will take the proposal to the state Insurance Department for final approval despite the opposition. (For more, see special SIIS package below.) BENEFITS SUSPENSION BLOCKED: A federal judge said the government and the coal industry must keep a promise made 46 years ago that retired miners and their dependents will have lifetime health insurance, even though the funding mechanism is broken. U.S. District Judge Glen Williams blocked the suspension of benefits to 120,000 elderly miners and miners' widows Tuesday night. CALIF. HEALTH PLAN BACKED: California Insurance Commissioner John Garamendi captured partisan backing for his universal health insurance proposal Tuesday when key committee leaders - all Democrats - urged passage of the still-developing plan. The universal health-care system would be financed largely by employers but include some contributions from workers. HOSPITAL ASSOCIATION HAS PLAN: Hospitals said Tuesday that Ohio should raise cigarette and alcohol taxes and increase fines for drunken driving and seat belt violations to help control health costs. Under the plan offered by the Ohio Hospital Association, the money that's raised would be spent on health insurance for the uninsured, drug education and rehabilitation. STATE DEPARTMENTS HARD TO REACH: State insurance departments around the country are facing increased demand from the public for consumer information amid growing interest about insurance after the recent failures of several major insurance carriers. Weiss Research found that departments in six states (Arizona, Massachusetts, Missouri, New Jersey, New Mexico and South Dakota) could not be readily reached. GAYS GET MORE BENEFITS: Gay and lesbian employees' efforts to win health insurance benefits are gaining momentum. Levi Strauss and Minnesota Communications Group recently joined Lotus Development and about a dozen other U.S. companies in extending health benefits to gay partners. D.C. BILL EXPANDS BENEFITS: The Washington, D.C., City Council has voted to give unmarried couples legal recognition as "domestic partners" and to expand their options for health care benefits. If approved by Congress, the District's bill would go further than similar measures in Seattle and San Francisco by offering tax breaks to private employers who offer health insurance to domestic partners. BLACKS LESS LIKELY TO GET BYPASS: Black Americans on Medicare are 3 1:2 times less likely to receive bypass surgery than white Medicare patients, says a study in Wednesday's Journal of the American Medical Association. In the rural southeast, blacks were seven times less likely to have bypasses than whites, says Dr. Arthur Hartz, Medical College of Wisconsin, Milwaukee. SPECIAL PACKAGE ON SIIS: SIIS GM FIGHTS FOR RAISE: Three management representatives on the SIIS board were joined by labor representative Jim Arnold in voting against the 22% raise. Jayne said he's going ahead with the plan because it's his responsibility to keep SIIS solvent and provide benefits to injured workers. Cited: Increased medical costs, more expensive rehabilitation programs and longer benefit payments to workers. HIKES NEEDED TO OFFSET INCREASE: The SIIS general manager said the rate hike is needed to offset big increases in insurance pay-outs between 1985 and 1988, a period in which SIIS had no rate hikes. Rates started climbing in 1989 but the pay-outs also continued to increase. SIIS raised its rates 11.4% for this year. But Jayne said SIIS will pay out $518 million in expenses by the end of the fiscal year. FUND COULD BE WIPED OUT: Jayne also said the book value of the SIIS investment portfolio was $667 million last July but by this June will be down to about $561 million. Without the rate hike and a restructuring of the agency, he added that the portfolio could be wiped out in about four years. Another problem for the system is a shortfall of about $365 million in a fund used to pay injured worker claims over time. (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. 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