Blog on the Run: Reloaded

Wednesday, April 22, 2009 9:41 pm

You could hate this part of AIG, or you could just be glad it’s profitable

Filed under: Hold! Them! Accountable! — Lex @ 9:41 pm

Me, I’m going with the hating:

Civilian workers who suffered devastating injuries while supporting the U.S. war effort in Iraq and Afghanistan have come home to a grinding battle for basic medical care, artificial limbs, psychological counseling and other services.

The insurance companies responsible for their treatment under taxpayer-funded policies have routinely denied the most serious medical claims. Those insurers — primarily American International Group (AIG) — recorded hundreds of millions of dollars in profits on this business. …

The insurance system for civilian contractors has generated profits for the providers, primarily AIG, the war zone’s dominant player. Insurers collected more than $1.5 billion in premiums paid by U.S. taxpayers and have earned nearly $600 million in profit, according to congressional investigators.

A military audit deemed AIG’s premiums “unreasonably high.”

Insurance companies initially rejected 44% of claims from contractors involving serious injuries and more than half of all claims related to psychological stress, records show. As a result, civilians maimed or traumatized in the war zone often must wage lengthy court battles for medical care and benefits.

The high denial rate is partly due to government rules that give insurers only 14 days to decide the validity of a claim. Insurers often reject first and investigate later.

This is worse than the VA’s disability compensation-and-pension program, and that’s pretty damn bad.

1 Comment

  1. Thanks for keeping this story going.
    We’ve been fighting this for six years and couldn’t bring any attention to it until the media decided they could get some ratings by bashing AIG.

    Comment by defensebaseactcomp — Friday, April 24, 2009 8:49 am @ 8:49 am

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