rulemylife
Posts: 14614
Joined: 8/23/2004 Status: offline
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HEALTHCARE: AIG vs. the VA Recently, the LA Times did an investigative report concerning the health care that private contractors from Iraq received upon their return to the States. The report is a real eye opener when comparing the VA to private health care providers. Over 31,000 private contractors have been wounded in Iraq and Afghanistan. Unlike American soldiers who get VA care, the contractors must deal with AIG! Private insurance companies have collected over 1.5 billion in premiums from Iraq & Afghanistan contractors. A military audit claimed that those premiums were “high”. They were so high that often as much money was spent on insurance premiums as was actually paid to the contractor. And since the insurance premium was included in the contracts between the government and the contractor: your tax dollars paid those premiums! So what did we get for our tax money? AIG rejected 44% of claims involving serious injury and over half of all claims for PTSD. (This included claims for artificial limbs! As an insurer, how do you deny a man his artificial leg?) From the onset of the war, there was concern that insurance companies would not process claims quickly. So the contracts were written requiring AIG to respond to claims within 14 days. Rather than hurry an investigation, AIG simply denied the initial claims as a matter of course. Then the claims would go to mediation if the contractor filed an appeal. If no agreement could be reached (and in more than 1,000 cases they couldn’t reach an agreement) the matter is referred to court. Now you are looking at approximately two years of litigation before a resolution is reached. In approximately 75% of the cases that went to court, AIG lost and was ordered to pay the contractor’s medical care. Then AIG would file an appeal. And throughout this long process, the contractor is responsible for the cost of his own medical care. The quality of the care is also different between AIG and the VA. The Rand Corporation recently did a study comparing VA care to private insurers that showed striking differences: “The patients were randomly selected males aged 35 and older. Based on 294 health indicators in 15 categories of care, they found that overall, VA patients were more likely than patients in the national sample to receive recommended care. In particular, the VA patients received significantly better care for depression, diabetes, hyperlipidemia, and hypertension. The VA also performed consistently better across the spectrum of care, including screening, diagnosis, treatment, and follow-up. The only exception to the pattern of better care in VA facilities was care for acute conditions, for which the two samples were similar.”
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