KAISER: GOVERNMENT SETTLES WITH HMO ON FEHBP PAYMENT CLAIM

      The U.S. Office of Personnel Management (OPM) has agreed to
 pay Kaiser Foundation Health Plans of Northern California $25.7
 million plus interest to settle a claim that it underpaid Kaiser
 between 1987 and 1996 for premiums to cover workers in the
 Federal Employees Health Benefits Program (FEHBP), according to
 MANAGED CARE WEEK.  David Mlawsky, editor of the newsletter,
 said, "The settlement appears to be the largest in a string of
 recent similar deals the government has struck with several other
 HMOs that contract to cover federal employees."  
      BAD DEALS:  For several years, managed care plans
 participating in the FEHBP program have complained that the
 government does not keep accurate records of the number of
 federal workers and retirees in participating health plans.  As a
 result, many HMOs contend that they are being "gypped out of
 FEHBP premium dollars."  According to MANAGED CARE WEEK, at least
 three other HMOs have reached similar settlements.  In September,
 OPM agreed to pay $8.25 million to NYLCare Health Plan to settle
 claims that FEHBP underpaid premiums for government workers. 
 Last year, the government agreed to pay an HMO run by Rockville,
 MD-based Mid Atlantic Medical Services Inc. $3.3 million in
 premium underpayments.  And in 1994, the government settled with
 the Kaiser Foundation Health Plans of the Mid-Atlantic States on
 $6.8 million in premium underpayments (Atlantic Information
 Services, Inc. release, 12/11).