A New York workers' compensation measure, that would have increased the threshold for prior authorization of certain medical and 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 prior approval from $500 to $1,200.

Kristina Baldwin, regional manager and counsel for the Property Casualty Insurers Association of America (PCI) said today that New York has the second highest cost level for comp claims in the nation and the bill would have limited one of the few measures available to limit costs.

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