The purchasing groups will now be called "health alliances."

Last summer, she returned to the work force as a sales manager for a purchasing group in the health-care field.

By Jan. 1, 1996, each state must establish one or more of the large purchasing groups, known as regional health alliances, for its residents.

All Federal, state and local government employees must obtain coverage through the purchasing group in the area where they live.

They say the new purchasing groups would give small businesses the same advantages that large corporations have when buying health care.

States would be required to set up regional purchasing groups run by a sophisticated buyer, or sponsor.

The purchasing groups can be a godsend for smaller companies.

The purchasing group would then be allowed to raise its premiums the next year.

At the heart of the plan would be large purchasing groups, representing at least a million people in a state or region.

Another option says that "states shall designate" such purchasing groups within six months or a year.