Thursday, August 16, 2007

Defence Contract workers have problems with health insurance

The extent of contracting out in the Iraq war is much higher than in previous conflicts. This provides a great source of profit for private capital. This is the sort of thing that Chris Floyd notes as a success in the face of failure. As long as the war keeps on the profits will keep rolling in. The casualties will not have the medical support that is offered to soldiers, not that their support is always that marvelous.

HEALTH-US: Defence Contract Workers Fall Through Insurance Cracks
By Eli Clifton

WASHINGTON, Aug 15 (IPS) - New statistics from the United States Department of Labour offer greater insight into the number of defence contractors killed in Afghanistan and Iraq, but questions remain about compensation for injured or dead contract workers and their families.

The data, which was requested by the office of Congresswoman Jan Schakowsky, Democrat of Illinois, discloses that 76 contractors died in Afghanistan between Sep. 1, 2001 and Jun. 30, 2007.

In Iraq, the Department of Labour reports that 1,001 contractors died between Mar. 1, 2003 and Jun. 30, 2007.

Furthermore, for claims involving "lost time", "four days or more" is the data's longest period recorded. This category could reflect lost time from illness, such as a long bout with the flu, but could also indicate contractors having suffered serious injuries. The numbers are relatively high, with 879 contractors in Afghanistan and 4,837 in Iraq.

"Anyone who is injured working as a contractor in Iraq or Afghanistan should have defence base act (DBA) insurance," Phillip Morris Davis, a law clerk at Pitts & Associates, told IPS. "Most of the employers are also insured by AIG (American International Group). They are required to provide compensation in terms of medical management and 'scheduled injuries'," such as losing a finger.

However Pitts & Associates, who represent a number of injured contractors, say the claims process for injured contractors to get their medical coverage and expenses paid can be an uphill battle against insurance companies and contracting firms eager to avoid costly compensation payouts.

"AIG and many of the other insurance providers have been most unwilling to expand benefits to most of the contractors. Twenty-five to 30 percent of the time they'll pay. The rest of the time they contest. Especially with PTSD (post-traumatic stress disorder)," said Davis.

"When the insurance companies do have to pay, and don't contest it, they usually wait until told to do so by administrative law judges. Hearings usually require nine to 18 months to schedule," he added.

"When a claim is filed we have 14 days to accept the claim or deny it. If it goes over 14 days to collect documentation you have to reject the claim. Then you can accept the claim after you've received the documentation," AIG spokesman Chris Winan told IPS.

"Large numbers of rejected claims do get verified and claimed as quickly as possible. Our experience is that much more than 90 percent of all claims are paid without dispute," he said.

The U.S.-led war in Iraq has, according to many analysts, seen the highest use of contractors by the United States when compared to other military conflicts.

With 160,000 soldiers stationed in Iraq, it is estimated that between 126,000 to 186,000 contractors provide the support labour for U.S. forces, meaning there is roughly one contractor for every soldier stationed in Iraq.

"As a contractor you're much worse off than a soldier when you go into the field. (Contractors) might make more money in the short run, but in the end you lose out," CorpWatch editor Pratap Chatterjee told IPS.

"The life of a contractor is incredibly hard, and if you're Indian or Bangladeshi you don't make a whole lot (of money), and if you get hurt or killed you're out of luck," he said.

"We have a war that's being fought by poor people from South Carolina or Bangladesh," Chatterjee added. "The U.S. government preys on these people."

Defenders of the U.S. policy of using increasing numbers of contractors point to the numbers of Iraqis and South Asians hired for support positions as evidence that the contracting business is good for workers in Iraq as well as developing countries.

"Iraqis are doing a lot of contracting jobs, but it's as if (to the media) they don't even exist. Contractors do use locals and create jobs in the local economy. It's why the UN uses them and NGOs use them," International Peace Operations Association (IPOA) -- a trade association for contracting firms -- president Doug Brooks told IPS.

U.S. contractors do end up performing support operations roles in positions where security clearance or access to secure bases is required.

Russell Skoug, of Diboll Texas, worked on refrigeration and diesel generators used for transport trucks in Iraq for Wolfpack Security and Logistics before he was injured by an improvised explosive device (IED) while riding in a convoy.

Skoug was medivacked first to Germany and then to Andrews Air Force Base in Maryland before being flown to Texas Orthopaedic Hospital in Houston. He lost four inches of his femur bone and sustained significant flesh injuries.

"Bills started coming back from Cigna International (where Wolfpack told Skoug they had DBA insurance). Grounds for denial were that it was an on-the-job injury in a war zone. Cigna paid me until the end of December and then I didn't receive any more payments so I guess I was just off the payroll after December," Skoug told IPS.

Skoug says he eventually found out that Wolfpack never had DBA insurance, a requirement for firms contracting with the U.S. government in Iraq.

Karen B. Holko of Westbranch Michigan was a truck driver in Iraq with Kellogg Brown and Root (KBR) when the convoy she was with came under attack. Her truck fell off a 30- foot embankment, leaving her with injuries to her back and neck, and PTSD.

"We were supposed to have insurance from the moment we got on the plane," Holko told IPS. "I never received information or an insurance card. When I tried to file for a worker's comp in Iraq I was told it was beyond the limitations of the accident."

Despite the injuries she sustained and the legal battle she faces to get health care coverage, Holko still sees contracting in Iraq as a the best option for some people to earn money.

She says, "As far as KBR goes, if you're signing up to make money just go and make money." She adds later: "I'd go back in heartbeat, but next time I'd make sure I'm fully armed with all the paperwork before I go." (END/2007)

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