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1 , The Daily Register VOL.98 NO.26 SHREWSBURY, N. J. MONDAY, AUGUST 4, 1975 15 CENTS """""" '"" '"'"uiMiiimn miiiiiiiiiin.il i mi II iiiiiMiniiiiiii , ,„,„„„ ,„,„„ ,„,„ „„„„„„„„„„„„„„ uiiiiiiiMiiHiiiiiininiiii i H niiiiiiiniu IIIHII iiiiiiHiiiiiiiiiiiiiiiiiiiiiiiHiiiiiiiiiiiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiniutiiiiiiiiHiiimi Blue Cross: Lack of controls boosts costs By WILLIAM STOCKTON In Florida, Blue Cross asked the state insurance commis- 10 /ears, according to government statistics, while doctors' A doctor who testified at a congressional hearing projected (First of a series of five articles) sion for a 26 per cent rate hike. Florida Blue Shield wants 14 fees have gone up 85 per cent. The cost of living, meanwhile, this saving nationwide and came up with a saving of $5 bil- per cent more. has risen 68 per cent. lion WASHINGTON (AP) - The cost of medical care in In North Carolina, one class of Blue Cross-Blue Shield The AP investigation indicates that Blue Cross and Blue Blue Shield, which pays doctor bills, gives doctors a ma- America is rising more rapidly than the cost of living, partly coverage would increase 43 per cent, other classes {8 per Shield — now involved in the payment of 30 per «ent of the jor say in determining the amounts Blue Shield will pay them because Blue Cross and Blue Shield hesitate to impose con- cent. nation's $100 billion annual medical bill - might put brakes trols on doctors and hospitals. for treating subscribers. But the formula used encourages New Jersey Blue Cross sought approval of a 29 per cent on this in nation. doctors to raise their bills, because the bills they submit help A three-month investigation by The Associated Press in- hike from state insurance officials, Blue Shield 34 per cent. All of the Blue Cross and Blue Shield plans, for example, determine the reimbursments they'll get. Only five of the 71 dicates that Americans might save millions, and perhaps bil- Increases in Colorado range from 10 per cent to 40 per cent. agree to pay the hospital and doctor costs of elective surgery Blue Shield organizations have put limits on this system lions of dollars, annually if Blue Cross and Blue Shield Rates vary widely among the 144 Blue Cross and Blue without requiring a second opinion on the need for that surge- changed some of its practices. Blue Cross, which provides hospital insurance, is helping Shield plans. Coverage for one family now often costs be- ry. One New York City union instituted a second opinion re- finance over 60,000 surplus beds in American hospitals. Only Instead, the rates' of the two nonprofit, public service tween $50 and $65 monthly. quirement in its health insurance plan. That was in 1972 and three of the 73 Blue Cross plans require hospitals to verify the health Insurance organizations are climbing steeply across The price ol a semiprivate hospital room has risen 197 per elective surgery has been reduced by 17.5 per cent among the the country. medical necessity of a hospital admission at the time it occurs cent — to $100 a day or more in many hospitals — in the past 11,000 union members since then, at a saving of $7 a member. See Blue Cross, page 21 """ """" "••••••••ilium II i iiiiiiiiiiiiiiiii niiiiiiiiui inn HI i iiiiiiiniiiiii mini i i IIIIMIIIIIIIIIIIMIIIIM u i i iiiiiiiiiiimiiiiiii mi iiiiiiiiiiiiiuii niiiiiiiiui iiiiiniiiiiii IIIIIIIII IIIIIIMIIIIIII Illlllllllllllllll Rain today may bring respite in heat wave By HILDY and JIM gency water alert continued the incoming tide that did not though police reportedly MeCORMICK yesterday in Highlands, even make bathing appealing. turned away cars headed east though water was restored to Dale B. Engquist, area on Rt. 36 to the park. Possible thunderstorms homes that were without it manager at Gateway Nation- By late yesterday after- today may cool the scorching Saturday. al Recreation Area. Sandy noon, most of the usual Sun- sands braved by beach-goers Today's forecast called for Hook unit, said state and day northbound traffic on Rt. last weekend, but the humid, possible afternoon or evening Coast Guard tests show the 9, and Routes 34 and 36 was warm weather that some- showers with temperatures substance is a norr-toxic over. However, the traffic times reached to 100 degrees a little lower tomorrow. The "waning bloom of micro- jam on the Garden State is expected to continue in the humidity is expected to con- organism." Parkway continued past 11 Ms. tinue high. Mr. Engquist said the park p.m. Power outages reported in was filled to capacity Satur- A concentration of upwards several Monmouth County Many bathers braved the day and was closed at 11 a.m. of 200 fishing boats off Sea communities Saturday did not hot sands only to find a light for two hours. The park was Bright and Monmouth Beach recur yesterday. An emer- brown substance floating with not closed yesterday, even Saturday resulted in what one bather described as "a sea of aluminium cans" being wash- ed up on area beaches. A massive traffic jam was reported last night on Ocean Ave. between West End and the boardwalk in Long Branch. Blackouts were reported CAN'T BEAR IT — It's been hot In West Germany, heat via slumberland, probably dreaming of cooler Saturday in areas of Manala- too, and this polar bear In Duisburg zoo escaped times and places. pan, Rumson, Matawan and Ocean Township. They re- portedly did not reoccur yes- terday. Highlands water storage Japanese terrorists seize tank went dry Saturday after- noon, but Thomas Schultz, Civil Defense director, said last night "we are holding our own" after nearly 40,000 gal- U.S. consul in Malaysia lons of water were pumped KUALA LUMPUR, Ma- and three Malaysian employ- was no word of progress. Embassy window. It included back into the tank early yes: laysia (AP) — A gang of es in his 9th-floor office, a The press spokesman said a demand that a Japan Air- terday morning. Japanese Red Army terrorists U.S. spokesman said. that one of the armed intrud- lines plane take "the man* or "Because of the heat we seized the U.S. consul and a Swedish Charge d'Affaires ers was demanding that sev- men" out of Malaysia to a just ran out of water Satur- Swedish diplomat today and Frederick Bergenstrahle and en Red Army people in Japan destination to be named. day," he said. "A lot of threatened to blow up the his secretary were seized at and the "operative unit" be In Washington, State De- people in the hill area had no building where they were about the same time, the em- set free. Officials said they partment spokesman Robert water at all. Pressure was being held if their demands bassy official said. did not know whether the Funseth confirmed the gun- low downtown." were not met, U.S. Embassy The building also houses the "operative unit" reference man had entered the consular After Mayor Cornelius J. officials said. Several women Japanese and Canadian em- was to the group of terrorists section of the Embassy at Gulney and Mr. Schultz de- also were seized in the build- bassies, but it appeared that in the Embassy. 11:30 p.m. local (12:30 a.m. clared a state of emergency, ing which houses several em- all the other diplomats were First reports were that only EDT) and had seized, in addi- BIG SPLASH —'These youngsters on Renler Court In New Monmouth dealt officials notified the county bassies. evacuated safely. one gunman had entered the tion to the American diplo- with the heat problem yesterday by opening a fire hydrant on their street. radio of the problem. The officials reported that The hostages were seized building. mat, "perhaps one or two Ma- The result was a strong torrent of cold water. Authorities have warned that "Before we knew it, we had "four to six" terrorists were on the ninth floor of the 12- A list of demands was tossed laysian employes" of the em- the practice Is prohibited. water from all over the coun- demanding that seven Red story American International in a yellow envelope from the bassy. See Heat, page 2 Army prisoners held in Japan Assurance building in the be freed or explosives planted heart of the capital. in the building would be deto- Malaysia's highest ranking nated. police officer, Inspector Gen- 20 city policemen Restoration of budget cuts A guard and a policeman eral Haniff Oman, was trying trying to control a crowd out- to talk the gunmen into giving side the 12-story building themselves up after the build- were shot and wounded by ing was surrounded by more get subpoenas in the gunmen after they seized than 150 policemen, many of set for completion today U.S. Consul Robert Stebbins them marksmen. But there TRENTON (AP) - The job cover operating expenses for a program providing state aid from the collections of the department probe of restoring $267.8 million to the fiscal year that started to schools on an equitable business personal property New Jersey's state budget is July 1. basis. He said the only way to tax to the state treasury. The By JANE FODERARO after a black city youth was expected to be completed Gov. Brendan T. Byrne had implement a meaningful pro- transfer involves surplus shot by a police officer here today. ordered the cuts when the gram of fiscal reform is via funds in the pool created by LONG BRANCH - Approx- last December. The officer, The Senate Is scheduled to lawmakers refused to enact an income tax or revision in the tax. imately 20 city policemen John Adams, was acquitted of vote on a package of taxes his proposed income tax.

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