WASHINGTON, April 30 (Reuters) - High-deductible health plans, touted by some health insurers as a way to contain runaway medical costs, are attracting wealthier individuals than typical plans, a government report on Wednesday found.

The plans charge steeper yearly deductibles, typically about $1,000 for individuals, in exchange for cheaper monthly premiums. The higher out-of-pocket limits are aimed at encouraging patients to make wiser treatment decisions.

Critics say they attract the healthiest and wealthiest, leaving sicker people in the wider insurance pool and boosting overall health care costs. They also say the plans push costs onto patients and are too pricey for the poor and uninsured.

The General Accountability Office (GAO), an investigative arm of Congress, found the plans do indeed attract the wealthier, those with an average income of $139,000, compared with about $57,000 among others plans, an analysis based on income tax records.

Rep. Pete Stark, the California Democrat who requested the GAO report, argued the plans are being used as a tax shelter for the wealthy.

"They aren't the answer for providing adequate health insurance coverage for the average American," Stark said in a statement.

More than 6.1 million people were covered by such plans by the beginning of 2008, up from about 3.2 million in 2006, according to America's Health Insurance Plans (AHIP), which represents insurers such as UnitedHealth Group (UNH.N: ) and Aetna Inc (AET.N: ) and released a separate report on Wednesday.

Karen Ignagni, president of AHIP, said the government study is based on 2005 data, when only 1 million people were in the plans.

She also cited industry data that the plans are attracting a wide age range, to counter the argument they simply benefit the young and healthy.

The plans are typically coupled with a tax-favored savings account to help patients pay for medical bills. About 40 percent of those in the plans chose that option, GAO found.

"The assertion is these accounts are letting people stash assets. But if you are getting an MRI, it could be $1,000 or $1,500," Ignagni said.

Health care costs have been rising at a pace at least twice the rate of inflation, and faster than wages, for several years. The plans have also been promoted as an option for the uninsured, now at about 47 million, or about 15 percent of the U.S. population.

The number of uninsured is expected to keep growing, especially if the economy continues to deteriorate. (Editing by Tim Dobbyn)

© Thomson Reuters 2008 All rights reserved

But the heart of “Sportsmanlike Conduct” is learning how the combination of an average salary of $500,000 a year and an average playing time of three-and one half years equals the need for serious financial planning. The Financial Advisers Program was set up by the NFL Players Association to protect the professional athletes from incompetent financial advisers. Dana Hammonds, director of the NFL's Financial Advisers Program, said the most significant challenge facing new players is handling “sudden wealth.” “When you come out of college, even if you have some sort of financial training, there's not much that can prepare you for earning $200,000 to millions of dollars,” she said.

According to Miller, the adviser program will be expanding into other professional sports soon. “I believe that basketball, baseball and hockey want to do the same type of program, and they will probably pick those of us that are registered and make us their first group,” Miller said.

Try out a Best's Review Video Experience. Get the inside scoop by watching Best's Review's award-winning editors talk about their May stories at http://www.bestreview.com/videos.

May's Other HIGHLIGHTS:

* Want to get ahead? Look for A.M. Best's listing of 113 insurance designations.

* Discover what's at the top of IT's “to do” list in Best's Review's exclusive survey.

* Find out the story behind the high-profile employee defections that are sparking a wave of lawsuits among brokers and insurers in “Musical Chairs.”

Best's Review is published by the A.M. Best Company for insurance professionals , including home office executives, agents, brokers and others who are affiliated with the industry, such as bankers, lawyers and educators.

To read these articles and more, subscribe to Best's Review by visiting our Web site at www.bestreview.com, call the A.M. Best customer service department at (908) 439-2200, ext. 5742, or e-mail your request to customer_service@ambest.com.

WASHINGTON (Reuters) - The Federal Reserve lowered interest rates by a modest quarter percentage point on Wednesday, as expected, and hinted the move could be the last in a series meant to buffer the economy from a credit crunch and housing downturn.

The Fed, however, kept its options open and nodded to ongoing financial market stress, tight credit and the deepening housing contraction, leaving some market participants guessing rates could still move lower.

The central bank's action takes the bellwether federal funds rate target, which banks charge each other for overnight loans, to 2 percent -- the lowest since December 2004. It was the seventh cut in a campaign that has brought the key lending rate down by 3.25 percentage points since mid-September.

The Fed also on Wednesday cut the discount rate it charges on direct loans to banks by a matching quarter point.

(Additional reporting by David Lawder and Alister Bull in Washington and Jennifer Ablan in New York; Editing by Neil Stempleman, Gary Crosse)

© Thomson Reuters 2008 All rights reserved

Quoting a conversation with Dick Weil, PIMCO's chief operating officer, the FT said PIMCO was looking to hire in areas such as mortgage securities trading and credit analysis.

Citigroup (C.N: ), Morgan Stanley (MS.N: ) and Merrill Lynch (MER.N: ), among other Wall Street companies hurt by the global credit crunch, have cut jobs recently.

A PIMCO representative was not immediately available for comment.

(Reporting by Aarthi Sivaraman; Editing by Louise Ireland)

© Thomson Reuters 2008 All rights reserved

The Mortgage Insurance Cos of America said on Wednesday that 58,131 insured borrowers were at least 60 days late on payments in March. That is up from 42,362 a year earlier, but down 4.6 percent from February's 60,911.

The March figures marked the first time in four straight months defaults had not exceeded 60,000.

The number of mortgage holders who are late on payments is key because this is often a precursor to foreclosure.

(Reporting by Lilla Zuill; Editing by Andre Grenon)

© Thomson Reuters 2008 All rights reserved

Advisors Remain Optimistic on U.S. Markets, Economy

BERWYN, Penn.--(BUSINESS WIRE)--Brinker Capital, a leading investment management firm, today released results of the first quarter’s Brinker Barometer, a gauge of financial advisor confidence and sentiment regarding the economy, retirement savings, investing and market performance.

“The first quarter’s Barometer results show some interesting differences between the still-optimistic views of financial advisors contrasted against market volatility, escalating oil prices and inflationary fears,” noted John Coyne, President of Brinker Capital. “In fact, 64% of our financial advisor respondents say they are either ‘highly confident’ or ‘somewhat confident’ about the U.S. economy, and 66% feel the same way about the financial markets. What’s remarkable is that these sentiments haven’t changed in any discernible way since we began issuing the Barometer a year ago.”

If it has to be a Democrat…

Financial advisors leave little room for doubt as to which party they favor to win the presidential race, with 22% of advisors reporting in the Q4 ’07 Barometer that a Democrat in the White House was their “single greatest economic worry.” When pressed in Q1, however, to pick the Democratic candidate likely to have the most positive impact on the U.S. economy, 54% of advisors selected Barack Obama, with the remaining 46% giving the nod to Hillary Clinton. In Q2 ’07, John McCain scored highest among the three candidates still in the race as to who would most likely have a positive impact on the economy.

The Economy is Job 1

When asked what the most immediate priority of the new president should be, a full 48% of respondents said “bolstering a weak economy,” followed by 16% who noted “winning back America’s respect in the eyes of the world,” and 13% who said “shoring up a falling dollar.” Other notable responses included “capping gas prices at the pump,” “Iraq troop reduction” and “healthcare reform.”

Government to the Rescue

Asked to name the areas in which they would most welcome Federal intervention, 65% of advisors responded with “supporting a weakened dollar,” 59% with “stabilizing the financial markets,” and 31% noting “cutting interest rates before year’s end.” Other responses included “discourage job outsourcing to foreign nations,” “regulating gas prices” and “providing financial relief to embattled homeowners.”

For a copy of the full Q1 survey, please contact:

Jemile Dragovic, jdragovic@middlebergcommunications.com

 www.brinkercapital.com

James Ketner, President and CEO of Kelyniam Global, Inc. stated: “The reason for this new policy is the company is currently in negotiations to provide engineering consultants for a major U.S. Aircraft Manufacturer. One of the requirements of entering these negotiations is that Kelyniam Global, Inc. has retained the necessary insurance coverage for potential employees placed at their facility.” www.kelyniam.com  

“Today, instead of Betty Grable’s legs, it is Ugly Betty star America Ferrera’s smile which is insured at Llloyd’s for ten million dollars.” Levene stated during his presentation.

In his presentation, he noted that the premium generated in California alone, was larger than the total premium from much of Western Europe, combined! 

Following his presentation to the BABC Lord Levene met privately with Mike Petersen and Tom Petersen of Petersen International Underwriters, to discuss how the Lloyd’s market, through Petersen International Underwriters, was being utilized for other forms of High Limit Disability insurance, as well as international major medical and kidnap ransom coverages! Lord Levene indicated he was impressed with the variety and volume of business placed into the Lloyd’s market through Petersen International Underwriters. He also congratulated the Petersen’s for working on behalf of the market to change legislation in New York, to allow for the selling of High Limit Disability insurance which was previously prohibited a year ago. piu@piu.org

Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist, today announced the publication of Managing Prosperity: 2008 Bermuda Update Report, which closely examines the recent financial performance of Bermuda-based primary insurers and reinsurers and looks ahead to the future of the market in 2008 and beyond.  The report finds that despite a ten-year record of outperforming the Standard & Poor’s (S&P) 500 in generating shareholder value – driven by low tax rates, experienced executives and a friendly regulatory regime – the Bermuda market faces significant challenges to prosperity in 2008.

“The low catastrophe losses we witnessed in 2006 and 2007 have caused balance sheets to swell, but on the other hand, the opportunities to deliver the outsized returns that investors desire have nearly vanished,” said Cliff Rich, Managing Director and Head of Market Information, Guy Carpenter.  “Assuming current market conditions remain, the profit rate of Bermudian companies will almost certainly decline in the coming year, and Bermuda-based entities will face new challenges in an era of more modest returns.”

According to Guy Carpenter’s Bermuda Composite index, comprised of 25 Bermuda-domiciled insurance holding companies, return on equity (ROE) stood at 18.4 percent in 2007, an enviable performance compared to most investment opportunities in today’s economy. In addition:

Retained earnings saw companies' capital increase by 14.2 percent in 2007, creating a high hurdle for the coming year.

Gross written premiums for Bermuda companies in 2007 grew at a modest pace of 5.1 percent.

Underwriting profits were strong for the Bermuda Composite in 2007, with the combined ratio recording a record low of 84.9 percent.

“To maintain their current rates of return, Bermuda companies would need to substantially increase earnings – a daunting proposition, given the overall softness in the insurance and reinsurance markets,” said Sean Mooney, Chief Economist, Guy Carpenter.  “While the low level of insured losses from catastrophes certainly played a key role in delivering strong financial results in 2006 and 2007, it is unrealistic to expect a third benign catastrophe year in a row.” 

A full copy of the report can be downloaded at www.guycarp.com. 

(San Diego California, May 1st 2008) Taking a page from the playbooks of leading Silicon Valley and other technologically sophisticated firms, the Mark Ross Group of Companies today completes a dramatic change in its operational format moving fully to a hybrid traditional / virtual operating environment. MRG will situate its executives in satellite offices, supported by local and independent staff, across the country, having successfully linked all corporate activities to the new central office location in San Diego, California. The new format is expected to position MRG uniquely among competitors and to yield savings, efficiencies and other dividends immediately. For information contact Mr. Steve Acunto at 914 966 3180 ext 110.

Unless a person is extremely wealthy or virtually penniless, the income the person earns is the heart and soul of his/her livelihood.  It provides the means to buy food, clothes, a home, education, recreation, and hopefully a decent retirement.  But the chances of sustaining a long lasting earned income cash flow is dependent on the consumer staying alive and remaining unencumbered by income interruptions, the major cause of which is getting sick or hurt and being in a state of disability, whether permanent or temporary.

Earned income is most peoples’ only tool.  Even a modest level of income earned week after week, month after month, and year after year is a very formidable weapon to be used against the ravages of destitution.  A person, age 35, who earns $50,000 per year, will have earned over $1,500,000, even if he never gets a raise.  At $100,000, the figure becomes $3,000,000 and at $250,000 the accumulative total is $7,500,000.  Two factors need to be explained.  One:  Americans don’t save money, according to the U.S. Department of Labor.  The saving rate last year was 0.05%.  The other factor is:  due to improvement and inflation most people will increase their income by 5% each year.  The 35 year old who increases income 5% per year over his $250,000 annual income will have produced $16,609,700 by age 65.  A formidable sum!

These glimpses into earnings makes it obvious that adequate income cash flow is indispensable if a life is to be lived without desperation or failure.  The only dependable source of adequate income cash flow is from a well designed Disability Income Insurance Plan.  It’s like having money in a wall safe.

It is instant—you don’t have to save over a lifetime.

It is TAX—FREE.  This is valuable even to wealthy people.

It is always available quickly, and each time one is sick or hurt.  It is not a fund that once used is gone forever such is the case with savings and investment accounts.

Nearly 49 top rated insurance companies offer quality disability insurance in adequate amounts to perform the task.  It is available from over 256,000 licensed, professional insurance agents, brokers, and financial planners.

Wheaton, Ill., April 30, 2008—Property/casualty insurers will soon have access to a new endorsement option for adding equipment breakdown coverage to a homeowners policy.

The endorsement will be made available on a sample basis (not filed) as part of the Homeowners Program developed and maintained by the American Association of Insurance Services (AAIS), a national advisory organization that develops policy forms and rating information used by more than 600 property/casualty insurers throughout the U.S.

COLUMBUS, Ohio--(BUSINESS WIRE)--To help consumers diversify their investments more simply through asset allocation, Nationwide Financial Services, Inc. (NYSE: NFS), today announced the introduction of the NVIT CardinalSM Funds as part of its annual updates to strengthen investment options within the company’s variable annuity and life products.

Carter said Nationwide’s newest asset allocation solution includes seven fund-of-funds managed for different levels of risk, from conservative to aggressive, offering consumers a simpler way to diversify.  www.nationwide.com

MAYFIELD VILLAGE, Ohio--(BUSINESS WIRE)--For years, Massachusetts drivers saw national advertising for a product they may have wanted to buy, but couldn’t: Progressive car insurance. But today, that comes to an end as the country’s third largest auto insurer begins offering policies to Bay State drivers online at progressive.com. www.progressive.com

Bay Shore, N.Y.—May 1, 2008—The Brownyard Group (www.brownyard.com), a program administrator providing specialized insurance coverage for select industry groups, announced today that it has renamed its cosmetic manufacturer program FoundationSM, and will add Meadowbrook Insurance Group as an admitted market on May 1.

Meadowbrook, rated A- (Excellent) by A.M. Best, will provide a new general liability market for Foundation, and enable the program to expand its coverage.

a program administrator providing specialized insurance coverage for select industry groups, announced today that it has given a new name—SASSI (Salon & Spa Specialty Insurance)—to its specialized beauty industry programs and added Meadowbrook Insurance Group as an admitted market for SASSI. Meadowbrook is rated A- by A.M. Best.