Tags: AIG, Defense Base Act Insurance, FECA
According to a recent Department of Defense posting, it is seeking comments concerning the future of the Defense Base Act insurance system, which in case you are new to this blog, is a workers’ compensation that covers civilian employees working for companies contracting overseas through the Department of Defense.
For now they are seeking input from the insurance industry and from major defense contractors. Eight possibilities for the future of the Defense Base Act have been proposed, but the DoD is open to other alternative recommendations:
Tags: AIG, Defense Base Act Insurance, KBR
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This comes as no surprise to many, but AIG may have been lining its pockets at the expense U.S. taxpayers. AIG is currently under investigation for overcharging KBR Inc., the Army’s largest contractor in Iraq, possibly by tens of millions. The money paying for these overpriced premiums comes from tax payers as part of the $23+ Billion contract KBR has with the Department of Defense. AIG actually gets to charge the American tax payer twice, because your tax dollars not only pay the premiems, but also reimburse AIG for what it pays out on the 15,000+ Defense Base Act claims filed with AIG since 2003.
In case you missed this story, read more about it below in an article from Bloomberg.com by Tony Capaccio: