HMO REFORMS GAIN SPEED.(MAIN)

Byline: DAVID HESS Knight Ridder

WASHINGTON -- In an effort to prevent a wholesale defection of Republicans on managed-care health reform, GOP House leaders on Friday backed a plan that would give all Americans covered by private health insurance the right to sue their HMOs -- a top priority of the Democrats and President Clinton.

The surprising development came a day after several key Republicans joined House Democrats in backing a reform bill that includes not only the right to sue but also other curbs on HMO cost-cutting practices.

The potential compromise on the contentious issue is meeting stiff resistance from insurers and the businesses that buy insurance for employees.

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