Wednesday, May 13, 2009
Blackwater employees
Throughout the United States’ “War on Terror,” various services have been contracted out to private firms. These service contracts, which can range from equipment and weapons manufacturing to diplomatic security details, are often awarded without competitive bidding. In Iraq and Afghanistan combined, there are hundreds of thousands of private contractors deployed, and they now outnumber U.S. soldiers. Although these contracts are with private companies, the United States taxpayers have been footing the bill for their employees’ medical expenses while on the job.
According to a report by the Inspector General of the Department of Defense (PDF), military medical facilities have repeatedly failed to bill contractors’ insurance providers for medical expenses. These health insurance policies are bought and paid for by the private contractors and are most commonly provided by AIG. Department of Defense policy requires that the military be reimbursed for costs incurred when providing services to private contractors; however no agency is effectively able to enforce this policy. This is because the Department lacks a unified system of billing, and contracts are vague about who should pay. Instances of military clinics failing to collect from contractor insurance companies are fairly common.
The military hospital at Bagram Air Force Base in Afghanistan reported that a third of its patients were civilian contractors. The Pentagon report audited nine medical facilities and showed an average loss of $1.2 million per year. In response to this news, the Pentagon has implemented a pilot program in four military hospitals whereby patient tracking cards keep a record of individual medical expenses. While this program does show promise in making sure that private insurance companies reimburse taxpayers for public services, it fails to address a another issue of concern: military commanders have for a long time grumbled at the added strain on medical facilities resulting from treatment provided to private citizens.
-Tyler Schenk-Wasson
Contractors Using Military Clinics (by Walter Pincus, Washington Post)
Military Fails to Collect From AIG for Care to Injured Contractors (by T. Christian Miller, ProPublica)
Health Care Provided by Military Treatment Facilities to Contractors in Southwest Asia (Inspector General, United States Department of Defense) (PDF)
Injured in Iraq and Afghanistan, Contractors Fight AIG for Medical Care (by Noel Brinkerhoff, All Gov)
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