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 Mon, Mar 23 1992 Date: Mon, 23 Mar 92 05:45:26 EST Message-ID: 03-23 0000 DECISIONLINE: Insurance USA TODAY Update March 23, 1992 Source: USA TODAY:Gannett National Information Network PARTIAL VICTORY FOR MINERS: Democratic Sen. Jay Rockefeller declared at least a partial victory Friday in his fight to preserve retired coal miners' health benefits, even though President Bush vetoed the bill that would have guaranteed them. Rockefeller said that since Congress passed the measure as part of the Democratic economic growth package that should make it easier to get approval for another bill later. USAIR COMMUTER PLANE CRASHES: A USAir commuter plane with 51 aboard crashed Sunday at LaGuardia Airport during a snowstorm after an aborted takeoff attempt, killing at least 15 people, officials said. USAir officials said Flight 405, carrying 47 passengers and four crew members, was enroute from LaGuardia to Cleveland. PROPOSAL MADE FOR INSURER: Belvedere Corp. and Christiania General Insurance Corp. announced Friday that Christiania has made a proposal to enter into a merger agreement providing for the acquisition of Belvedere by Christiania. The proposal provides for each holder of common stock of Belvedere to receive $6.00 per share in cash. Christiania currently owns approximately 54.8% of Belvedere's common stock. PURCHASE AGREEMENT EXPIRES: Atlantis Group Inc. announced Friday that the definitive agreement which had been signed in December 1991 for the sale of its Western Pioneer Insurance Co. has expired by its terms. The agreement, which was subject to financing, expired because the prospective purchaser was unable to arrange suitable financing prior to the expiration date of the contract. WORKERS' COMP COSTS UP IN KAN.: According to William Hager, president of the National Council on Compensation Insurance, rising medical and litigation costs are among the factors driving up workers' compensation costs in Kansas. Hager said that medical costs accounted for 45.5% of the Kansas claim dollar in 1990 vs. the national average of 40%, and the cost of semiprivate hopsital room rose almost 120% from 1980 to 1990. NATIONAL PLAN NOT POPULAR: Although it has received a lot of attention, the idea of national health insurance is not going over well among voters in presidential primaries, according to Carl Schramm, president of the Health Insurance Association of America. Schramm said the unsuccessful campaign of Sen. Bob Kerrey, D-Neb., who stressed health care, shows people are disinterested in a national plan. ADMINISTRATIVE CUTS MUST BE CUT: Uwe Reinhardt, a professor of political economy at Princeton, says private insurers must reduce the percentage of premiums that go toward administrative expenses if they want to survive. He says that the expanded use of electronic claims processing could sustantially reduce such costs, which ideally would be no more than 10% of the premium, but are often as high as 40%. SEARCH FOR ARSONIST CONTINUES: A search continued Sunday for an arsonist who set five barns on fire in western Daviess County (Ky.) and tried to torch two others, police said. The blazes set Saturday destroyed three barns and damaged equipment inside. Damage estimates were put at $100,000. MORE INSPECTIONS NEEDED: Three-thousand workers in Michigan will die of job-related illnesses in 1992 due to lax inspections and mild fines for safety violations, The Detroit News reported Sunday. Cited: Twenty-one inspectors must police over 185,000 sites. The agency that does inspections needs more state resources, official said. PAYMENTS IN QUESTION: In Farmington, Mass., Sun Crest Hospital will remain eligible for Medicare payments. Cited: Deficiencies found by federal inspection have been corrected. Also, medicaid payments to two ambulance firms - accused of making over $800,000 in false claims - have been halted by the state of Texas, the San Antonio Express-News reported Sunday. The companies are appealing civil actions. FIRE PROBE UNDER WAY: In Weatherford, Texas, a probe is under way of a fire that destroyed the historic John L. Heartsill Store warehouse. The 19th century warehouse burned Saturday. The stone structure has housed two castor oil companies, tanning plant, Coca-Cola bottling plant and American Legion Hall. The cause of the blaze is unknown. FUND CHANGES TACTICS: The USA's largest pension fund, the California Public Employees Retirement System, says it will take a different approach this year to change things at companies it has invested in. CalpPERS says that instead of using shareholder proposals in battles with corporate boards, it is negotiating with companies to get them to be more shareholder-friendly. Insurance Editor: Jason Smith. (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