A New York workers' compensation measure, that would haveincreased the threshold for prior authorization of certain medicaland diagnostic services, was vetoed last night by Republican Gov.George Pataki.

An insurers trade group praised the governor's rejection of A.8713 sponsored by Assemblyman Herman D. Farrell Jr., D-Manhattan,which would have raised the ceiling on treatment without priorapproval from $500 to $1,200.

Kristina Baldwin, regional manager and counsel for the PropertyCasualty Insurers Association of America (PCI) said today that NewYork has the second highest cost level for comp claims in thenation and the bill would have limited one of the few measuresavailable to limit costs.

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