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KEMPER NATIONAL EXECUTIVE URGES CUOMO AND LEGISLATIVE LEADERS TO DRAFT SUBSTANTIVE WORKERS COMPENSATION REFORM BILL

 New YORK, Dec. 8 /PRNewswire/ -- The president of the Kemper National Insurance Companies'(NYSE: KEM) New York City Division today called on Gov. Mario Cuomo, Senate Majority Leader Ralph Marino and Assembly Speaker Weprin urging them to draft a workers compensation reform bill that gets at "the root of many of the cost drivers in the current system."
 The New York Legislature will probably consider workers compensation reform when it goes back into session Dec. 16. In letters to the governor and legislative leaders, Barry E. Scammell, the Kemper National executive, asked them to address managed care for all New York businesses, repeal of the Dole v. Dow doctrine, and establishment of objective standards to determine permanent partial disability in the reform bill.
 Kemper National has 6.1 percent of the workers compensation insurance market, making it the fifth largest workers compensation insurer in New York. In 1992, it had premiums of just under $119 million.
 Following is the full text of Scammell's letter to Gov. Cuomo. Identical letters were sent to Majority Leader Marino and Speaker Weprin:
 I understand that you, Speaker Weprin and Senate Majority Leader Marino are working to develop a workers compensation reform bill. I commend you for taking the initiative to solve some of the problems with the current system.
 Speaking for the Kemper National Insurance Companies, an employer of several hundred throughout New York and the workers compensation insurer for hundreds of thousands of New York workers, I hope the bill that is ultimately considered by the Legislature will include the following provisions that are at the root of many of the cost divers in the current system:
 -- A managed care system for all New York businesses, not just pilot projects;
 -- Repeal of Dole v. Dow, the doctrine that allows employees to sue third parties and recover damages from employers. As I am sure you know, New York is the only state in the nation that has such a rule, and it costs businesses approximately $200 million every year, and;
 -- Establishment of objective standards to determine permanent partial disability.
 I am confident that only by addressing these important measures can there be reform of the workers compensation system that will result in meaningful cost savings for New York businesses.
 -0- 12/8/93
 /CONTACT: Kevin E. Barber, Kemper National public relations director, 708-320-2410/


CO: Kemper National Insurance Companies ST: New York IN: INS SU:

SP -- NY059 -- 1766 12/08/93 12:29 EST
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Publication:PR Newswire
Date:Dec 8, 1993
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