Officials of the Atlantic Southern Insurance Company are in the territory this week to reassure clients that the company is in good shape financially and will continue providing group coverage, despite pulling individual medical coverage last year.
"The company is alive and well and is most definitely in the group major medical business, " said Robin Bolton , president of the Puerto Rico-based company.
Atlantic Southern has about 350 group policies in the Virgin Islands, covering small and large businesses, he said.
"Having group medical insurance is as good for the businesses as it is for the employees. It creates a loyalty factor, a comfort factor and creates a situation where people want to stay with a company," he said. "And if employees get sick, they will be back sooner and healthier."
The confusion over Atlantic's status was caused in part, Bolton asserted, by former Lt. Gov. Kenneth Mapp's warning that residents would lose their group coverage after the firm announced it would no longer cover individuals.
"The company pulled out of individual major medical coverage business in the Virgin Islands last year, but the previous Lieutenant Governor made some erroneous statements that the company was pulling out of group major medical coverage, but that was never the plan in the slightest," he said.
Atlantic stopped covering individuals because of the rising costs of health care, Bolton said.
"The reason we got out of individual coverage is, the cost of health care is escalating, there was aggravation for the clients and we decided not to put our rates up."
Individual coverage is also more expensive because it is typically less healthy people who take out policies, Bolton said.
Group coverage, on the other hand, is more profitable and easier to manage, he said, because it covers many people, some of whom are very healthy and don't incur significant expenses.
"We're now in much better financial condition and we're concentrating on the business we know and business close to home," Bolton said.

Police have announced the arrest of two 20-year-olds, Damien Warner of 36 Green Street and Jahmal Elmes of Domini Gade #8, in connection with an armed robbery in the area of Ulke Gade near Western Cemetery.
The pair were arrested on Sunday. The statement from Police Chief Jose Garcia did not say when the robbery occurred.
Warner was charged with first-degree robbery and possession of stolen property. According to police, he was positively identified as one of the robbers. Police have not identified the victim.
Elmes, who police said was also identified, was charged with first-degree robbery and possession of a controlled substance with intent to distribute. Bail for Elmes was set at $86,000. Warner is being held on $85,000 bail.

Rotary East meets at 6.30 p.m.Wednesday, August 4, in the Conference Room at the Elysian Beach Resort.
The guest speaker is Ms Fern LaBorde, president of the Cancer Society.

Dear Editors;
Let's all hope the governor has the wisdom to veto the mandatory car insurance boondoggle being pushed by the legislature until it has been discussed in public hearings.
The legislature should never pass legislation which forces people to surrender property (money) without first being absolutely sure it is necessary. Being certain is what public hearings can accomplish. Being certain is where mandatory insurance fails the test. Who needs it? Does it accomplish its intended purpose? Is there a better way? We have lived for a decade without mandatory insurance. We have lived quite well without it. Why go back to forced "protection" payments?
Insurance doesn't save money overall. It makes profits for insurance companies. Have our legislators been approached by these companies? Sure they have. What company with a profitable product wouldn't want the purchase of that product to be made mandatory? It's a salesman's dream.
The legislature, except those voting against like Ms Gomez, should be ashamed of this scam.
Terry Conklin
St John

St. Croix educator Vineta Emelda Hinds Gordon, who died in Rochester, NY, on July 26, was remembered by Gov. Charles Turnbull Monday.
Turnbull extended his condolences to Gordon's family and loved ones in a statement sent from Dallas, where he is traveling and attending various meetings.
"Mrs. Gordon dedicated her life to the education and enlightenment of many St. Croix children. During my tenure as Commissioner of Education, Mrs. Gordon was an inspiration to all who had the distinct pleasure of working closely and sharing ideas with her," Turnbull said.
"Her life's work was dedicated to the betterment of our youth and she gave unselfishly of her time and love. She will be missed by all," Turnbull continued.
St. Croix Administrator also expressed sorrow and extended condolences.
"I was saddened to learn of the untimely passing of my former colleague and friend. I have worked with Mrs. Gordon and her husband, the reverend Vincent H.A. Gordon, Sr., and can say that she was indeed a wonderful person," Ross said.
"Magnanimous in her efforts, she did so much for many people. She was a god fearing person woman who can be viewed as the 'quintessential educator,'" Ross said.

Garbage receptacles will be moved out of Market Square in an attempt to spruce up one of the island's top historic districts.
The Department of Public Works will remove the receptacles near the Friendly Bar on August 4, DPW Assistant Commissioner Wayne Callwood announced Monday.
Another factor motivating the move is there are no residences in the immediate and the surrounding commercial establishments, under V.I. Code, are responsible for the disposal of waste generated while conducting business.
DPW and the V.I. Police Department will monitor the area to ensure no garbage is dumped on the street after the receptacles are moved.

Gov. Charles Turnbull is reportedly close to naming a press secretary — an individual he has done without for the first seven months of his administration.
Radio One reported Monday that former Government House spokeswoman Rina Jacobs McBrowne, who worked in the press office during the Luis and Farrelly administrations, will be named to the post.
The press secretary is not only the governor's official spokesperson but writes press releases and oversees the general public relations operations of Government House and the executive branch.
James O'Bryan, Turnbull's Special Assistant for Public Policy, has been serving as unofficial press secretary since the administration took office in January.
A series of public relations officers from elsewhere in the executive branch have also filled the role over the past seven months, including Elliot Whisonant of the Department of Planning and Natural Resources, Lee Vanterpool, now with the Health Department, and Juel Anderson of the Tourism Department.

With the Beal Aerospace proposal for St. Croix’s Great Pond Bay still in limbo, encouraging words have come from Andrew Beal himself after meeting with Gov. Charles Turnbull in Dallas on Monday.
"We had very candid discussions and lengthy dialogue about our proposed project on St. Croix, and took particular effort to clarify points of confusion about our project," Beal said in a release Monday afternoon. "We look forward to a very long and prosperous relationship with the people of the Virgin Islands."
Turnbull and Rudy Krigger, assistant to the governor for Fiscal Policy and Economic Affairs, left the territory Friday to meet with Beal in Dallas. Before he left, Turnbull said he was going to "convey the government's support for the establishment of the proposed Beal plant at a St. Croix location."
That "location" is the key to Beal Aerospace locating its world headquarters and rocket assembly on St. Croix. Currently, the Beal proposal is stalled in the V.I. Legislature pending action on a land exchange agreement that includes Beal acquiring 14.5 acres of government-owned land near Great Pond Bay in exchange for two parcels it owns in Grange Hill and Estate Whim.
Beal holds the option to approximately 280 acres of land off of Great Pond Bay on St. Croix’s rural southeast shore. The company needs the 14.5 Camp Arawak parcel for a portion of its parking lot and buffer zone surrounding its proposed facility.
The Camp Arawak land, however, was deeded to the V.I. government in 1974 for the sole purpose of being developed for public park land for the people of the Virgin Islands. The entire 280-plus acres would also have to be rezoned for industrial use.
Opponents of the development at Great Pond want Beal and the V.I. Port Authority to work out a deal so the company can purchase land VIPA owns near the already industrialized area of the island.
Although Beal in his statement alluded to a "long and prosperous relationship" with the territory, he was vague about any movement to locate operations at Betty’s Hope. Beal said the meeting with Turnbull was a chance to reiterate the "attributes and advantages" of the project.
"We specifically underscored our commitment to environmental protection and our desire to work with the governor, the government and the people of the USVI to everyone’s greatest benefit," Beal said.
Meanwhile, after his stop in Texas, Turnbull and his Cabinet officials will met with federal officials in Washington, D.C., on Tuesday and Wednesday to discuss the territory's financial crisis. Turnbull will return to the territory on Aug. 5.

The privatization of the V.I. Water and Power Authority will likely be the main point in a Senate Committee on Government Operations meeting Tuesday.
Following a July 23 meeting for which many WAPA officials and board members failed to show up, Sen. Gregory Bennerson, chair of the committee, subpoenaed them for Tuesday’s session, said his press officer, Richard Nicks. Those supposed to attend the meeting, billed ostensibly as a chance to discuss the status of the utility, were WAPA Executive Director Raymond George, Assistant Executive Director Gregory Willocks and the utility’s governing board.
Soon after WAPA experienced an island-wide power outage on St. Croix earlier this month, the governing board approved a request by Gov. Charles Turnbull that Southern Energy be awarded a 60-day due diligence period that normally precedes a sale agreement. Along with the company’s operations in the U.S. and Europe, Southern Energy operates utilities in Trinidad and the Bahamas.
Former Gov. Roy Schneider twice floated attempts to sell WAPA to Southern Energy for approximately $30 million to $40 million. The attempts were more an attempt to increase revenues and to balance his budgets than to shore up a utility beset by outages and debt.
The V.I. government alone owes WAPA $33 million said Sen. Anne Golden, a vocal proponent of privatizing the utility.
Unlike the Schneider administration, Golden said, a sale shouldn’t be based on the government collecting increased revenue. Rather, she said, it should be done to improve service and the territory’s ability to lure investment.
"It’s about the survival of the fittest and a free market. The more government controlled WAPA is, the worse it gets," Golden said, adding that opponents of the idea were afraid of losing control. "Nobody wants to come here with a utility that’s falling apart."
The fear of off-island ownership, though, is stunting chances for quality service and investment in the territory, she said.
"A partnership with a private firm to improve the quality of service should be the factor" when contemplating a sale, Golden said. "It’s not going to get any worse than it is now."
Meanwhile, as the due diligence period with Southern Energy continues, the WAPA governing board has put off approval of purchasing a 23-megawatt gas turbine. The unit is needed to satisfy St. Thomas’ peak load, which is being hit now.
Because of the peak load situation, Sen. Lorraine Berry said last weekend on her radio show, an agreement between Southern Energy and WAPA for additional generating power wouldn’t come as a surprise.
Many hurdles remain in any potential sale of WAPA, including union employment questions and if retiring the utility’s large debt load would affect rates.
WAPA now carries approximately $200 million in outstanding tax exempt bonds. A potential buyer would have to refund the bonds after taking ownership, which translates to additional $4-million-a-year payments.
The Government Operations Committee hearing is set for 10 a.m. Tuesday in the Legislature's chambers in Frederiksted.

The lack of a long-term fiscal recovery plan and shaky revenue projections make Gov. Charles Turnbull's first executive budget proposal too flimsy to deal with the current financial crisis, according to the League of Women Voters.
The LWV's highly critical assessment, which was released this weekend, comes just before the Senate Finance Committee begins its month-long budget hearings, which are scheduled to start Wednesday with Turnbull's top financial planners presenting an overview of the government's financial condition.
"The proposed FY 2000 budget is woefully out of balance and provides a meager sum for essential services to taxpayers," LWV President Erva Denham wrote. "The League urges a reconciling of the inconsistencies in the budget and a submission of realistic revenue and expenditure projections."
Due to worsening finances, Turnbull has already cut his original budget proposal by approximately 15 percent, from about $488 million to under $420 million. The nearly $70 million decrease is expected to result in pay cuts, layoffs and a reduction in government services.
"At this time, one of the most obvious shortcomings of the budget is the absence of a long-term plan for fiscal recovery," Denham stated. "And rumors of anticipated recovery and reorganization plans are, as of this writing, just that, rumors,"
The few cost-cutting initiatives the Turnbull administration has undertaken to stimulate the economy — such as a hiring freeze and curtailed use of government vehicles — completely ignore the private sector malaise, Denham wrote:
"The League is concerned that the proposed economic stimuli do not include any proposals designed to stimulate the private sector; rather, they rely too heavily on Government-sponsored capital projects which at best, produce short term gains."
The Turnbull administration must attempt to boost the private sector before the territory's businesses will be able to rehire laid-off government employees, she said.
The administration's government reorganization plan is expected to be presented to the Finance Committee at the end of its budget hearings later this month. The LWV, however, said the reorganization plan should be in place before the budget is approved.
"To be effective, any reorganization must take into account the staffing needs of the departments and agencies along with the reduction caused by attrition," Denham wrote.
Much of the Senate's budget work is done by the majority caucus between the end of the Finance Committee hearing and before a budget is passed by the full Senate.
The legislative and judicial branches should also attempt to reduce expenditures, the LWV suggested:
"The League remains very concerned that, while actions to reduce the expenditures of the executive branch are proposed, no concurrent action exists for the budgets of the Legislature, the Territorial Court, instrumentalities, boards and commissions."
Each of the three branches of government needs to examine its payroll, the LWV also recommended.
"The League notes that some offices, such as the Office of the Governor, have higher payroll costs for FY 2000 than in FY 1998, with 10 fewer positions in FY 2000," Denham wrote. "The executive branch should examine all government salaries over $40,000 with a planned reduction on a sliding scale, and call on the legislative and judicial branches to do likewise."
Turnbull's questionable revenue projections are no change from the inflated projections of past administrations, said the League.
"As in prior years' budget proposals, some of the major revenue categories are lacking in a solid foundation," Denham wrote. "How realistic is the projected collection of $32 million in delinquent real estate taxes? Has any assessment been made to determine what portion of these are, in fact, collectible?
"The projected increase in income taxes also does not reflect reality. By all accounts, business closings are increasing and more people are leaving the territory, especially on St. Croix."
The Bureau of Internal Revenue must collect aggressively for the administration to have any hope of meeting revenue projections, Denham stated.
"This should help to eliminate the necessity of making long-term loans for the operating expenses of a single fiscal year," she wrote.
Last month, Turnbull announced the government would likely seek a $100 million loan to fund payroll costs and other operating expenses.
"For the League . . . as well as for all taxpayers, the time is overdue for a realistic, specific, constructive plan formulated from realistic, specific financial data with an equally realistic and specific timetable," Denham concluded.