Analysis of Labor Department data found that insurers had denied about 44 percent of all serious injury claims — those involving more than four days of lost work. The companies also turned down about 60 percent of contractors who claimed to suffer psychological damage such as post-traumatic stress disorder. The Times sued the government for access to Labor Department records.
“There are clearly serious deficiencies in the health coverage of civilian employees who have been injured while working overseas to keep us safe here at home — costing not only the men and women who are being refused coverage for the treatment they need, but also for the American taxpayers who are footing the bill for their coverage,” Cummings said.
This looks like some good legislation. Thanks to the work of Propublica and others, these insurance loopholes and wasteful practices will hopefully be shut down. It is also atrocious that at one point in this war, up to 44 percent of all serious injury claims were being denied. It is appalling that contractors were treated like this.
So hopefully this law get’s passed and it actually fixes the problem. I like the language in the bill in regards to assessing the law’s effectiveness after one year. If you have anything to add, either in support or against, let us all know.
If you want a great primer on what spurred on this legislation, check out Propublica’s work and there is lot’s of great info on this industry there. If you have any nightmare DBA claim stories, feel free to put that up in the comments section as well. –Matt
Cummings Introduces Legislation to Reform Defense Base Act Insurance Program
June 6, 2012
Rep. Elijah E. Cummings, Ranking Member of the House Oversight and Government Reform Committee, introduced legislation today that would save taxpayers huge sums of money by transitioning the existing workers’ compensation insurance system for overseas government contractors away from private sector insurance companies to a federal self-insurance program.
“There is absolutely no reason American taxpayers should be lining the pockets of private insurance companies,” said Cummings. “This bill would save billions of dollars while improving the ability of contractor employees who risk their lives in war zones to obtain the medical care and support they deserve.”
According to a 2009 Pentagon study, Congress could save as much as $250 million a year by transitioning the existing Defense Base Act (DBA) insurance program to a government self-insurance program. The study found: “In the long run, the self-insurance alternative may have the greatest potential for minimizing DBA insurance costs, and it has several administrative and compliance advantages as well.”