Woman Found Dead In W-b Motel Room

Alice M. (boone) Kiesinger

By M. PAUL JACKSON michaelj@leader.net
 Wednesday, January 08, 2003 &nbsp;&nbsp;&nbsp;&nbsp;Page: 1A 





WILKES-BARRE - Blue Cross of Northeastern Pennsylvania could be ordered to
pay up to $40 million to provide lower medical malpractice insurance premiums
for doctors - a prospect that has Blue Cross officials fuming. &nbsp;&nbsp;&nbsp; 
 Gov.-elect Ed Rendell's solution to the malpractice insurance crisis
includes using funds from the investment reserves of the state's Blue Cross
companies to pay doctors' premiums. &nbsp;&nbsp;&nbsp; That move could jeopardize subscribers, insurance company officials argue. &nbsp;&nbsp;&nbsp; 
 The proposal must be approved by the state Legislature, and there's no
guarantee it will pass, said insurance company officials. &nbsp;&nbsp;&nbsp; 
 ``Using the surplus dollars to pay for medical malpractice is an
inappropriate use of those health-care dollars,'' said Gerry Snyder, spokesman
for Blue Cross of Northeastern Pennsylvania, which has accumulated more than
$400 million in surplus funds. &nbsp;&nbsp;&nbsp; 
 Premiums for liability insurance - the insurance that protects doctors from
malpractice lawsuits - have risen by more than 100 percent over two years. &nbsp;&nbsp;&nbsp; 
 Some physicians have threatened to scale back their practices or leave the
state. &nbsp;&nbsp;&nbsp; 
 Under Rendell's plan, the state would suspend physician payments to the
state Medical Care Availability and Reduction of Error Fund for 2003, a move
that could reduce physician payments up to 30 percent. &nbsp;&nbsp;&nbsp; 
 The state fund insures physicians against claims of more than $500,000. &nbsp;&nbsp;&nbsp; 
 Rendell also is suggesting that all health insurance companies pay a
one-time ``emergency assessment'' from their reserves to cover the cost of the
suspended payments. &nbsp;&nbsp;&nbsp; 
 The assessment would be based on the size of the company's surplus. &nbsp;&nbsp;&nbsp; 
 The state's four Blue Cross companies, which are regulated by the state
Insurance Department, were taken to task in September for maintaining reserves
well above the state-mandated minimums. &nbsp;&nbsp;&nbsp; 
 Ken Snyder, a Rendell spokesman, acknowledged that insurance companies
might not be happy with Rendell's plan. The Blues already have voiced
opposition, Ken Snyder said, adding ``they are as unhappy about it, probably,
as the governor is asking for it.'' &nbsp;&nbsp;&nbsp; 
 Cutting into the reserves could jeopardize each company's ability to insure
its subscribers in case of an emergency such as a terrorist attack, said
Leilyn Perri, spokesman for Highmark of Camp Hill. &nbsp;&nbsp;&nbsp; 
 Highmark, which provides Blue Shield coverage in Northeastern Pennsylvania,
has about $2 billion in reserves - about four times its state requirement of
$499 million, according to the state Department of Insurance. &nbsp;&nbsp;&nbsp; 
 ``Taking money from our reserves to supplement (Rendell's proposal) is a
short-term fix,'' Perri said. &nbsp;&nbsp;&nbsp; 
 ``The monies that are in surplus are designed to pay for medical claims,''
said Gerry Snyder of the local Blue Cross. ``They're not designed for medical
malpractice.'' &nbsp;&nbsp;&nbsp; 
 Blue Cross of Northeastern Pennsylvania, the largest insurer in the county,
has reserves of about $409 million, more than five times its state requirement
of $77 million. &nbsp;&nbsp;&nbsp; 
 Under Rendell's proposal, ``there is a very high potential that a
significant amount of money will flow from Northeastern Pennsylvania to pay
for doctors in Philadelphia,'' Gerry Snyder said. ``It's the people of
Northeastern Pennsylvania who are going to pay for it.'' &nbsp;&nbsp;&nbsp; 
 Some physicians - who have loudly called for liability changes - also
seemed worried that Rendell's plan would succeed. &nbsp;&nbsp;&nbsp; 
 Dr. Mark Schiowitz, a Wilkes-Barre general surgeon, said he is pleased with
Rendell's proposals, but was aware of the opposition by insurance companies. &nbsp;&nbsp;&nbsp; 
 ``We're skeptical that we even have a Band-Aid in place,'' he said. Without
the surplus dollars, ``the Band-Aid isn't even funded.'' &nbsp;&nbsp;&nbsp; 
 Rather than dip into surplus funds, Perri called for state reductions in
medical errors and fewer excessive lawsuits. &nbsp;&nbsp;&nbsp; 
 Legislators and insurance officials say a permanent solution is needed. &nbsp;&nbsp;&nbsp; 
 If Rendell's plan passes, ``that will get us through the short-term, but
what we really need to do is (find) compromises between the insurance
companies, the lawyers, the doctors and the hospitals,'' state Rep. Todd
Eachus, D-Butler Township, said. &nbsp;&nbsp;&nbsp; 
 Times Leader Harrisburg reporter Kenneth P. Vogel contributed to this
story. &nbsp;&nbsp;&nbsp; 
 &nbsp;&nbsp;&nbsp; 
 M. Paul Jackson, a Times Leader staff writer, may be reached at 829-7134. &nbsp;&nbsp;&nbsp; 
 &nbsp;&nbsp;&nbsp;

Rendell Sees Blues' Surplus Aiding Docs 
The Health Insurer Denounces A Plan By Incoming Gov. Ed Rendell To Help Cover
The Rising Costs Of Liability Insurance.

Rendell Sees Blues' Surplus Aiding Docs The Health Insurer Denounces A Plan By Incoming Gov. Ed Rendell To Help Cover The Rising Costs Of Liability Insurance.