Private insurance plans wishing to do business in the Medicare market would have to be certified as meeting Federal standards.

Under their proposal, the government would provide drug benefits, through a contractor, if private plans did not enter the Medicare market.

The two companies also appeared to have differing views on the Medicare market.

Many such organizations have pulled out, saying the Medicare market was not profitable enough.

Until now, insurers have generally shunned the Medicare market in rural states.

Will increased federal payments lure private health plans into the Medicare market?

The purpose of the fund is to induce preferred provider organizations to enter and stay in the Medicare market.

The insurance companies did not want the competition, but Gingrich gave them new products to sell in a more open Medicare market.

Companies gave several reasons for moving aggressively to stake out positions in the Medicare market.

Excluding a charge related to the departure from some Medicare markets, the loss was $36.6 million, or 26 cents a share.