Congressmen Ask GAO To Look Into Funds Charged By Mutual Funds

In a report to Congress on implementation of the anti-money laundering provisions of the USA Patriot Act, Treasury says that Unit Investment Trusts organized as insurance company separate accounts are likely to be required to establish anti-money programs once a Treasury Department proposed rule is finalized.

"Applying another set of anti-money laundering rules to such separate accounts appears unlikely to increase protection against money laundering," the report says.

Carl Wilkerson, chief counsel for securities with the American Council of Life Insurers, praises the Treasury report. "ACLI applauds the reports thoughtful recognition that the Treasury Department has already developed comprehensive anti-money laundering requirements for life insurers," Wilkerson says.

"Redundant anti-money laundering requirements would impede Patriot Act compliance and unreasonably stretch resources," he adds.

On the estate tax front, the Boston-based group Responsible Wealth renewed its campaign to preserve the estate tax.

At a media event here last week, the groups chairman, William Gates Sr., called for a nationwide campaign to preserve the tax.

Repealing it, Gates says, would exacerbate the disparity between rich and poor in America.

Gates was joined at the event by world-renowned financier George Soros.

Responsible Wealth is planning a series of events across the country to generate support for retaining the estate tax.

Finally, the American Association of Health Plans, Washington, says the Medicare+Choice program is facing a funding crisis that could displace 670,000 more senior citizens and disabled people from the program by January 2004.

AAHP President Karen Ignagni, who appeared at a media event last week with a group of senior citizens, says the funding crisis puts Congress at risk of reneging on its promise to give seniors greater choices and lower out-of-pocket costs in Medicare.

The Medicare+Choice programs allows Medicare beneficiaries to choose to receive their health care services from managed care organizations.

Ignagni says that when funded adequately, Medicare+Choice offers beneficiaries better benefits with lower out-of-pocket costs than Medicares fee-for-service plan.

However, she says, because of inadequate funding, hundreds of thousands of beneficiaries are being forced out of the program.

According to a new AAHP survey, she says, more than 276,000 beneficiaries are projected to leave the program this year.

An additional 394,000 beneficiaries will leave the program by January 2004, Ignagni says, if the 108^th Congress fails to take action to stabilize Medicare+Choice.

Reproduced from National Underwriter Life & Health/Financial Services Edition, January 20, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.