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Showing posts with label Dept of Veterans Affairs. Show all posts
Showing posts with label Dept of Veterans Affairs. Show all posts

19 May 2025

TUESDAY, 20 MAI 2025 IS THE ACLU'S ANNUAL GIVING DAY


 HERE is just a brief note on the work the ACLU is doing to defend our democracy in the courts, the streets, and the halls of Congress from the attacks of the drumpf / trump-musk-vance-administration supported by the gop / greed over people-republican party controlling Congress. Please donate if you can, what you can, no amount is too small. And thank you.


30 May 2014

WEEKLY NEWS ROUNDUP FROM MOTHER JONES 30MAI14

POLITICAL MOJO FROM DAVID CORN, KEVIN DRUM, AND THE NEWS TEAM

MOTHER JONES
May 30, 2014

TOP STORY
By Mariah Blake
According to VA inspector general reports and other documents that have gone overlooked in the current firestorm, federal officials knew about the scheme at the heart of the scandal—falsifying VA records to cover up the long wait times for medical care—years before Obama became president. [READ MORE]

MOST READ


TOP IN SOCIAL MEDIA


IN OTHER NEWS
By Dana Liebelson
The National Security Agency is firing back against former contractor Edward Snowden, who insists he reported his concerns about illegal surveillance activity directly to the agency in writing before leaking his treasure trove of super-secret documents. [READ MORE]



THIS WEEK'S NEWS ROUNDUP
Maya Angelou, acclaimed poet, author, and civil rights activist, died Wednesday at the age of 86. Here's what she told Mother Jones nearly 20 years ago.
Starbucks, Wendy’s, Applebees, Jack in the Box, Chipotle, Chili's, and Sonic have all now told gun rights activists to get rid of their guns or get lost. 
The first eastern Pacific hurricane of 2014 set a new intensity record. Here's why we could see even stronger storms before the year is over. 




Follow Kevin Drum on Twitter
Follow David Corn on Twitter

28 March 2013

We're Still at War: Photo of the Day & Jon Stewart outraged U.S. has flying kill bots but can’t fix Veterans Affairs backlog (video) 28&27MAR13

REMEMBER, we are still at war
Lord, we remember those who have given their lives for the sake of justice and freedom. Help us not to take our own freedom lightly, but to use it to advocate relentlessly for the freedom of others. Amen.

Machine gunners with Echo company, 2nd Battalion 9th Marines, Regimental Combat Team 7, walk to a training site on +Camp Leatherneck, Helmand province, Afghanistan, Feb. 28, 2013. +U.S. Marine Corps photo by +Staff Sgt. Ezekiel R. Kitandwe.
http://www.motherjones.com/mojo/2013/03/were-still-war-photo-day-march-28-2013?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Motherjones%2Fmojoblog+%28MotherJones.com+%7C+MoJoBlog%29

Jon Stewart outraged U.S. has flying kill bots but can’t fix Veterans Affairs backlog
By Eric W. Dolan
Jon Stewart screenshot
On his show Wednesday night, The Daily Show host Jon Stewart blasted President Barack Obama for failing to fix the growing backlog at the Department of Veterans Affairs while arguing the government could be a force for good.

Though Democrats have argued many of the country’s woes are due to Republican obstruction, Stewart noted that funding for the VA had actually increased over the past years. He described the current backlog in claims, which reached 245,00 in 2012, simply as “fucking criminal.” Veterans have to wait an average of 273 days before their disability claims are processed by the department.
Stewart explained the VA was still using a paper-based system — a ridiculous situation in 2013. The department has slowly implemented a new computer program, but it cannot not communicate with program used at the Department of Defense.
“The point is, if you’re making the case that the government has a meaningful role to play in improving people’s lives, then when you’re not obstructed from doing what you want, you better fucking bring it,” Stewart remarked.
“If we are smart and technologically-savvy enough to create flying unmanned robots with 1.8 gigapixel cameras that can spot enemy acne from 10 miles away and national security data mining programs that can store and process more than 10,000 times as much data as is stored in the entire Internet, we should be able to cook up a network spreadsheet program that knows which leg a returning soldier has lost without him having to fill out ten forms and coming in for a person-to-person visual leg assessment surveyance.”
“Otherwise, before long these guys won’t be obstructing the government, they’ll be running it again,” he concluded, referring to Republicans.
http://www.rawstory.com/rs/2013/03/28/jon-stewart-outraged-u-s-has-flying-kill-bots-but-cant-fix-veterans-affairs-backlog/

05 January 2012

VA SCREENING VETS TO TAKE AWAY CONCEALED CARRY PERMITS 1JAN12

ANOTHER piece of propaganda by the nra spreading fear of the Obama administration and the Vets Administration. Pathetic how these people are willing to lie and deceive people to further their gun agenda and even more pathetic how people will spread these e mails without checking them out. At least my friend who sent it to me asked me to check it out to see if it is true or not....From the Military Officers Association of America (MOAA) click the header to go to the MOAA site...

Another viral email about President Obama taking away your guns, this time focused on veterans and VA screening. The story is probably a shadow of an anecdote that was altered for political purposes, but there is no truth to the statement attributed to the nurse in the email below. The volume in this email is rivaling another that we’re working on for a later article regarding a $50 tax penalty for gun owners (which is also clever bilge).



The Most Common Email

U.S. Military Vets being disarmed!
The U.S. Veterans Administration has been instructed by the Department of Homeland Security to ask military vets 3 questions when they come in for any kind of medical check-up or problem. Answering “Yes” to any single question will result in the vet being disarmed by the government.

The following e-mail was sent to the [blank] by a Vietnam Veteran. His identity is being concealed to prevent reprisals.

I had a doctors appointment at the local VA clinic yesterday and found something very interesting I would like to pass along.. While going through triage before seeing the doctor, I was asked at the end of the exam, three questions.

(1. Did I feel stressed?)
(2. Did I feel threatened?)
(3. Did I feel like doing harm to someone?)

The nurse then informed me, if I had answered yes to any of the questions, I would have lost my concealed carry permit as it would have gone into my medical records and the VA would have reported it to Homeland Security. I am a Viet Nam vet and 15 year cc permit holder. Looks like they are going after us vets.” Be forewarned and be aware. If you are a veteran, you’ve been warned.


Origins

Unclear. There are a few variations of the email going through the web and scattered across message boards. The earliest web indexed article regarding the email is from May 17, 2009 and it was the TruthorFiction article that clearly carried a ‘Fiction’ verdict.


Evaluation & Commentary

There are many logical problems with this email (tip of the hat to VA Watchdog for some crucial details, and if they are calling Bilge on a VA matter you can take it to the bank):
  • The first line gives the wrong name for the VA, a dead giveaway from the start. The U.S. Veterans Administration is not the name of the Department of Veterans’ Affairs.
  • The DVA is strict in upholding patient/doctor confidentiality, and does not report information to the Department of Homeland Security unless there’s been a commission of a crime. Being stressed, feeling threatened and having thoughts of harming others are not crimes by any stretch of legalities.
  • DHS has no bearing on whether or not a concealed carry permit is issued. Depending on state laws it is the responsibility of the state, county or city of residence of the citizen.
  • There is no record of DHS asking DVA to ask these questions, and even if they did, the DVA is an independent cabinet position and not under the jurisdiction of DHS.
  • The lack of any good specifics, such as a location, person, etc…
  • These are questions that veterans of combat are routinely asked during examinations to look for signs of Post Traumatic Stress Disorder, and they’ve been a part of screening for longer than Obama has been president.
For further details of the realities of gun control in the Obama era, please read our own analysis, found here. There have not been any significant changes to the situation since that article was written.


Further Reading/Tools

Truth or Fiction Page
VA Watchdog
Message Board Example

You Can Help

Remember that forwarding a message you read but are unsure of without checking the available resources helps contribute to the Bilge. Help us battle it, and if you haven’t seen us write one of them up, email it to us here.

13 October 2011

Introducing "Beyond the Battlefield" 10OKT11

WE all have different opinions on U.S. military policy and the wars in Iraq and Afghanistan. Probably the only thing we can all agree on is these wars have taken a terrible toll on American troops who have experienced them firsthand, and those who have been wounded deserve the very best care. This is a series on the care of our wounded troops on HuffPost, the full series will be available it's own page on this blog, and you will also be able to access the series as published so far by clicking the links below...
Starting today, The Huffington Post begins a ten-part series, Beyond the Battlefield -- an exploration of the physical and emotional challenges, victories and setbacks that catastrophically wounded soldiers encounter after returning home from the battlefields of Iraq and Afghanistan.
Beyond the Battlefield is the result of several months of reporting and scores of interviews by the HuffPost's veteran military correspondent, David Wood. It is a deeply-felt, hard-won and wide-ranging exploration of what it means for a soldier to suffer extraordinary, disabling wounds -- and how friends, families, and hometowns, as well as the military and medical communities, adjust and respond to the physical and emotional struggles these wounded warriors endure.
Today you'll meet Tyler Southern, who lost both of his legs and an arm to an IED blast in Afghanistan last year. Southern has gone from nightmares in a hospital bed at Walter Reed to a new marriage, in part because of stunning medical advances that have stretched the boundaries of what it means to rescue and revivify fallen soldiers who once would have been left for dead. Southern also has re-entered the world due to his own stubborn resilience. "Cryin' ain't gonna grow anything back," he says. "I was raised to find the silver lining."
In future articles, you'll also meet soldiers so torn asunder by war that they continue to struggle with anger, depression, and alienation, with little hope of finding any tether back to the world they once knew. And you'll meet unsung heroes such as the spouses and parents of disabled soldiers, who remain the most powerful and unflagging advocates of wounded warriors despite having to confront daily humiliations and frustrations. Many of these caregivers give up jobs and their own identities to commit themselves to spouses or children whom war has unwound.
As one mother, Luana Schneider, so memorably notes in the series, her son went off to war "in the best physical condition of his life," only to return home "in pieces." Yet Schneider has spent the last several years feeding, clothing, and bathing her son, and continues to wrangle with the military bureaucracy to try to ensure that he gets proper care because, she says, she's driven by a simple dictum: "That is my child, and you owe my child respect.''
While Beyond the Battlefield is the most direct handiwork of David Wood, many talented folks at the HuffPost have played a role in bringing this series to life and their work is stellar. There are several moving videos accompanying the series, thanks to our video producer, Adam Kaufman, and our executive producer, Ken Shadford; there is an array of compelling, interactive data visualizations and infographics, courtesy of Chris Spurlock; there is an abundance of riveting photography, which Chris McGonigal helped engineer, and the words flow along nicely on the site thanks to deft editing help from Jeff Muskus. Get ready to see more superb narrative journalism from this team.
In the meantime, for those of you who would like to offer help of your own to severely wounded and disabled soldiers, please visit our Impact page, where you will find a list of resources that can help make that possible.

15 February 2011

VA Warns Vets About For-Profit School Scam from MOTHER JONES 15FEB11

PLEASE pass this on to any vets you know.....from Mother Jones....

Under retired Army general Eric Shinseki, the much-beleaguered Department of Veterans Affairs has begun in earnest to undo the extensive damage to troops and their support services that's been wrought in recent generations. One of its smarter moves was to jump on the social-media wave and use the interwebs as a way to get immediate feedback from vets and their families. The effort is spearheaded by blogger Alex Horton, an Army vet and pioneer milblogger who started tinkering with the format with a mostly-photos site, Army of Dude, while he was deployed in Iraq. He manages to build bridges between service members and their civilian counterparts with insight while avoiding political minefields or tossing the right-wing grenades that so many milblogs regularly lob. Yesterday, he offered civilians a heartfelt primer on how to talk to a vet. Today, he gives vets a rundown on how to maximize their education benefits—while avoiding some very nasty profit-making schemes:
Go to Google and search for "GI Bill schools." The first link you get isn't a page run by the Department of Veterans Affairs. The first result is GIBill.com, and it uses the name of the most recognized public education program in existence to its financial benefit.  It appears to be a legitimate site for information, but a cursory search of its privacy policy shows it is owned by an online marketing firm that, according to a major business publication, specializes in directing students to for-profit schools through its page. It's a questionable marketing strategy that seeks to legitimize a page that serves little purpose other than to funnel student Veterans and convince them their options for education are limited to their advertisers.
Questionable, indeed. MoJo's written about the scary ripoffs perpetrated by for-profit colleges here and here and here and here. They extract a lot of cash from unwitting students with little or no payoff, in terms of degrees and jobs. But they're so profitable, they've become highly valued among investors—possibly overvalued, to such an extent that they could represent a bubble market not unlike subprime mortgages.
But Horton brings up yet another way these schools break basic rules of fairness: by using official-looking sites to target service members and newly discharged vets, who come flush with government cash to apply to an education. Late last year, Bloomberg estimated that 20 for-profit colleges reaped more than half a billion dollars in taxpayer money, from GI Bill-eligible vets alone. No word on how many of those students ultimately graduate and get a job—or on how much they end up owing, above and beyond their benefit levels—but across the board, attrition and debt levels at for-profit schools are staggering, well above those for students at reputable state and private colleges. So, big props to Horton and the VA for drawing vets' attention to the racket. It may be the least the government can do, but it's a great start.
In not-so-related news, if you're an out-of-work vet, Rep. Jesse Jackson Jr. (D-Ill.) may be willing to help you. He's offering to enter unemployed vets' resumes into the Congressional Record to get them some exposure. (Craigslist, eat your heart out.) Interested parties, email your credentials to resumesfromveterans@mail.house.gov.
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Adam Weinstein is Mother Jones' copy editor. For more of his stories, click here or follow him on Twitter. Get Adam Weinstein's RSS feed.

21 October 2010

After Service, Veteran Deaths Surge 16OKT10 & BETWEEN NOW AND VETERANS DAY from IVAW 21OKT10

IT is sad the Pentagon is not addressing the problems of PTSD and the suicide rate among Iraq and Afghan war vets with the same vigor they are the fighting in these countries. For all their talk about concern about active duty soldiers and vets, they are failing these men and women and their families, with tragic results.
Iraq Veterans Against the WarSupport Our Work: Donate Now

Read the NY Times article by Aaron Glantz: After Service, Veteran Deaths Surge and send it to your friends.

Dear Craig,

In an effort to raise awareness about our Operation Recovery campaign to stop the deployment of traumatized troops, Iraq Veterans Against the War will be exposing information about the different forms of trauma troops and veterans experience.  Each week, between now and Veterans Day, we will share information with you about the realities of Post Traumatic Stress Disorder (PTSD), Traumatic Brain Injury (TBI), and Military Sexual Trauma (MST), conditions that affect hundreds of thousands of military members and veterans.
This week, we are focusing on PTSD.
You can help us spread the word by sharing this information with your friends, family, and colleagues.
Forward this email in its entirety, or click here to send a NY Times article about the surge in veteran deaths once they get home.

The Link Between PTSD and Suicide

Every 36 hours, a military member commits suicide

The occupations in Iraq and Afghanistan are continuing by the use of exhausted troops who are sent to war over and over again on multiple deployments.  Common sense as well as the Pentagon's own study tells us that increased exposure to traumatic events increases the likelihood of Post Traumatic Stress Disorder (PTSD).  A dangerous symptom of PTSD is suicidal thoughts and tendencies.
Last week, in an effort to de-stigmatize the issue of mental health within the military, the American Psychiatric Association initiated a call to reverse the policy of the President not sending condolence letters to families who have lost a service member due to suicide.  This is one step in addressing an overall military culture that stigmatizes those who seek help for mental or emotional distress, but there is a lot more work to do.

Veteran death rate is 300% higher than rate of those killed in combat

A recent study of veteran deaths in California reveals startling figures - between 2005 and 2008, three times more veterans died at home than died in combat in Iraq and Afghanistan during the same period.  The results of the study, described in a recent NY Times article by Aaron Glantz, counted the deaths of veterans by suicide, drug overdoses, motorcycle accidents, and other risky behaviors linked to PTSD.  While the study was done just in California, there is no reason to think that similar death rates of veterans would not apply across the country.  The government isn't counting these numbers, thus keeping under wraps the human costs of the ongoing occupations in Iraq and Afghanistan.
You can share this article with a friend by clicking here or forward this email in its entirety.

By spreading the word about the effects of redeploying traumatized troops you can help us stop the wars in Iraq and Afghanistan.
Thank you for your continued support.
In Solidarity,
The Campaign Team

After Service, Veteran Deaths Surge

by Aaron Glantz


In the six years after Reuben Paul Santos returned to Daly City from a combat tour in Iraq, he battled depression with poetry, violent video games and, finally, psychiatric treatment. His struggle ended last October, when he hung himself from a stairwell. He was 27.
The high suicide rate among veterans has already emerged as a major issue for the military and the families and loved ones of military personnel. But Mr. Santos’s death is part of a larger trend that has remained hidden: a surge in the number of Afghanistan and Iraq veterans who have died not just as a result of suicide, but also because of vehicle accidents, motorcycle crashes, drug overdoses or other causes after being discharged from the military.
An analysis of official death certificates on file at the State Department of Public Health reveals that more than 1,000 California veterans under 35 died between 2005 and 2008. That figure is three times higher than the number of California service members who were killed in the Iraq and Afghanistan conflicts over the same period. The Pentagon and Department of Veterans Affairs said they do not count the number of veterans who have died after leaving the military.
The figures, according to the federal Department of Veterans Affairs, legislators and experts in post-traumatic stress, underscore how veterans in Bay Area communities and across the state engage in destructive, risky and sometimes lethal behaviors.
The data show that veterans of Iraq and Afghanistan were two and a half times as likely to commit suicide as Californians of the same age with no military service. They were twice as likely to die in a vehicle accident and five and a half times as likely to die in a motorcycle accident.
“These numbers are truly alarming and should wake up the whole country,” said United States Representative Bob Filner, Democrat of San Diego, who is the chairman of the House Veterans’ Affairs Committee. “They show a failure of our policy.”
The coroners’ reports do not indicate whether each veteran was deployed to a war zone. But the ages at which they died — 18 to 34 — match the ages of at least two-thirds of veterans who served in Iraq and Afghanistan. Even the veterans in this cohort who did not see combat served in support functions, often at locations like Walter Reed Army Medical Center in Washington or Landstuhl Regional Medical Center in Germany, caring for those who were wounded on the front-lines.
The analysis was conducted by New America Media, a non-partisan news organization, in partnership with The Bay Citizen. It examined the most recent death certificates filed by coroners, medical examiners, physicians and funeral homes from California’s 58 counties.
According to the data, veteran fatalities exceeded the number of combat deaths involving service members from almost every county from 2005 through 2008. In the Bay Area, 114 young veterans died after returning home, nearly three times the number of Bay Area service members who died in the Iraq and Afghanistan conflicts over the same period.
Suicides represented approximately one in five deaths of young veterans, the data showed. Many other deaths resulted from risky behaviors that psychologists say are common symptoms of post-traumatic stress.
Jonathan Shay, a clinical psychiatrist who counseled Vietnam veterans for more than 20 years and has taught at the U.S. Army War College, said the high number of deaths shows how the combat experience can create psychological damage that manifests itself in a range of dangerous and nihilistic activities.
Veterans with post-traumatic stress often try to re-create the rush of combat, Dr. Shay said. “There is definitely an inclination of danger seeking,” he said, “seeking out fights, living on the edge, fast motorcycle riding, anything to get that adrenaline rush.”
The Department of Veterans Affairs only began to track suicides committed by Iraq and Afghanistan veterans in 2008.
Kerri Childress, a V.A. spokeswoman, said the analysis conducted by New America Media and The Bay Citizen was more accurate than figures available from the federal government. She described the figures as “extremely high and extremely devastating.”
Paul Sullivan, a Gulf War veteran and executive director of Veterans for Common Sense, said that the V.A. and Department of Defense are not serious about slowing the death rate of returning soldiers.
These government agencies could monitor this information on a regular basis, Mr. Sullivan said, adding that many other states in addition to California report a veteran’s status on death certificates.
“V.A. and D.O.D. appear to have a policy for veterans called ‘Don’t look, don’t find,” Mr. Sullivan said.
Ms. Childress said the V.A. had begun efforts to monitor stateside casualties. The agency has started numerous outreach campaigns focusing on veterans of Iraq and Afghanistan, she said. But less than half of returning veterans turn up at a V.A. facility for treatment.
On Sept. 24, Berkeley police found Alex Lowenstein, an Iraq veteran who was months from earning his degree in Peace and Conflict studies at the University of California at Berkeley, dead in his room at the Delta Upsilon fraternity house. Mr. Lowenstein, a Mill Valley native who was 24, died of a bullet wound to the head from his own gun.
The police initially concluded that his death was a suicide, but now say it may have been accidental. According to the police report, Mr. Lowenstein had been drinking and smoking marijuana on the night he died. No suicide note was found.
He was the second Iraq war veteran to die while attending Berkeley over the past two years. In 2008, Elijah Warren, a 26-year-old political science student who served multiple tours in Iraq and Afghanistan, shot himself in the head.
“These deaths are a difficult thing for everybody because of the preventative nature of it,” said Trevor Harris, the secretary of the veterans club at the university.
Mr. Harris, a former marine who served two tours in Iraq, said he personally knew three veterans who had died from suicide or motor vehicle accidents.
“We all understand that in war people get shot, but this doesn’t have to happen,” he said.
Neither Mr. Lowenstein nor Mr. Warren had visited V.A. health centers before their deaths, Ms. Childress said.
Stephen Xenakis, a retired brigadier general who formerly served as Commanding General of Southeast Army Regional Medical Command, said he expected the stateside death toll to increase because the psychological wounds associated with combat may not emerge right away.
“What you’re seeing is young men and women who saw combat in their early 20s as well as everything else that went on in the theater and then in their late 20s they get symptomatic,” he said.
When Mr. Santos, the Daly City veteran, first returned from Iraq in October 2003, his family thought he was fine.
“He still had his sense of humor,” his mother Paula, a secretary at a local elementary school, said in an interview.
Mr. Santos, who was known as Chip, was the son of Native American parents. He left Westmoor High School early with a G.E.D. to join the Army. It was before the Sept. 11 attacks, and Mr. Santos never thought he would go to war, according to his parents.
After he returned from Iraq, he slowly began to lose his spark and wit, his friends and family said. He rarely worked, and he could not keep a job. He would take a class at City College of San Francisco, then drop out. Mostly, he stayed home and played violent video games for most of the day and into the night.
His fixation on the video games infuriated his parents, but in a poem published after his death by the Institute of American Indian Arts in Santa Fe, Mr. Santos described the games as a way of “holding onto denial that is burning cancer into hope.”
Mr. Santos met his girlfriend, Waci Lone Hill, at the institute. The two were enrolled in the same creative-writing program. Ms. Lone Hill said she was attracted to Mr. Santos by his intelligence, his sense of humor and his old-fashioned style of courtship.
But, as early as 2005, Mr. Santos would “wake up in the middle of the night hollering” from nightmares, his girlfriend said. Sometimes, Mr. Santos would hold her so tight that she felt like she was being strangled. He started to drive erratically, sometimes at more than 120 miles an hour.
“If there was a lot of traffic, I could see the sweat break out on his forehead and hear the shallow breathing,” Ms. Lone Hill said. “He’d get this completely stone face, and I’d get scared and just be quiet.”
Not until five years after his return from Iraq did Mr. Santos see a social worker or a psychiatrist from the V.A. At first, his mother said, Mr. Santos did not want to admit that he had a problem. Then, after three years passed, he erroneously thought he was no longer eligible for V.A. health care.
When Mr. Santos finally applied, Ms. Lone Hill said it was difficult for him get regular appointments. He was only able to see a therapist once a month, she said. The therapists were often different, so Mr. Santos was forced to tell his story over and over.
Six months before his death, Mr. Santos enrolled in a study overseen by Charles Marmar, an expert in post-traumatic stress who recently left the V.A. to become chairman of the department of psychiatry at New York University.
As part of the study, Mr. Santos was able to get treatment every week from the same therapist, who administered cognitive behavioral therapy, in which the veteran relives the traumatic experiences in an effort to overcome them. Dr. Marmar described the therapy as “the gold standard” for treating post-traumatic stress.
Nine weeks into the treatment, Mr. Santos left the study, Dr. Marmar said. His therapist rated him as having “no clinical anxiety at that time.” Dr. Marmar said the V.A. tried repeatedly to contact Mr. Santos after he withdrew from the study, but he did not respond.
Three months after leaving the program, Mr. Santos hung himself in his Santa Fe apartment.
In an e-mail to his brother and his girlfriend that he said took him almost a month to complete, Mr. Santos wrote: “I’m tired of fighting this. I feel like I’ve tried everything but electro shock therapy.”
By the time his brother opened the e-mail, Mr. Santos was dead.
aglantz@baycitizen.org
This article originally appeared in the New York Times on October 16, 2010.

04 October 2010

U.S. pays as Prudential invests troop death benefits 3OKT10

THIS is disgusting, the greed exhibited by Prudential Financial is worse than the greed of the corporate pigs at aig, bank of america, citibank, wells fargo and all that other wall street trash......
By David Evans
Bloomberg News
Sunday, October 3, 2010; G1


When Prudential Financial invests the death benefits owed to survivors of U.S. troops killed in battle, the money comes from a source with deep pockets: the federal government.
After a service member dies in combat - including the more than 4,000 who have been killed in Iraq and Afghanistan - the Department of Veterans Affairs sends Prudential the full amount of each family's life insurance coverage, usually $400,000.
The government has paid Prudential $1.7 billion for these benefits since 2003, when the war in Iraq began, according to information provided by the VA.
Prudential holds that taxpayer money, invests it and reaps the gains.
Here's how it works: If survivors request a lump-sum payment of the death benefit, Prudential opens a retained-asset account, a quasi-checking account that allows families to draw money when they are ready to spend it.
(READ: Washington Post special report on soldier's traumatic brain injuries and coming home a different person)
Until the money is used, it stays in Prudential's corporate account. There, the insurer invests it, mostly in bonds, making returns as much as eight times what it is paying out to holders of the retained-asset account.
What this means is that Prudential is investing - and profiting from - death benefits owed to service members' families, using money provided by the government.
"They have what appears to be a nice sweetheart deal with the federal government," says Michael Powers, a professor of risk management and insurance at Temple University in Philadelphia. "This strikes me as the same sort of thing as those classic stories of the government paying hundreds of dollars for a wrench or a toilet seat."
Ninety-five percent of survivors paid by Prudential ask for lump-sum payments, the VA says. Since 1999, the company has sent out more than 60,000 Alliance Account checkbooks, instead of checks, covering more than $7 billion in death benefits when families asked for full payouts.
On average, Prudential holds about 16 percent of survivors' money for at least a year, according to the company. As of June 30, Prudential had $662 million belonging to military families in its general account, the VA says.
Prudential's general account earned 4.2 percent interest in the first half of 2010, regulatory filings show. The company paid survivors holding Alliance Accounts 0.5 percent in the same period.
"It sure looks like the VA provided an ill-conceived giveaway, or that Prudential played the VA like a fool," said Steven Schooner, co-director of the Government Procurement Law Program at George Washington University. "It's a lose-lose proposition for everyone but Prudential."
Prudential spokesman Bob DeFillippo said the professor is wrong.
"Prudential assumes the vast majority of mortality risk for the participants," he says. "We also assume all of the investment risk." He declined to elaborate on what the company's insurance and investment risks are.
The VA says it is taking steps to better help survivors.
"The VA is working to ensure that all aspects of the Alliance Account and all choices to the beneficiary are made absolutely clear and that all facts concerning the administration of the accounts continue to be fully transparent and disclosed," said Thomas Lastowka, the VA director for insurance.
The VA announced on Sept. 14 that Prudential had agreed to stop automatically sending checkbooks to survivors who request a lump-sum payment. Instead, the insurer will offer families the option of receiving the full amount by check.
Decades-old law
The reason why taxpayers pick up the tab for all life insurance benefits owed to the families of troops killed in combat dates back 45 years.
Before the Vietnam War, the U.S. government ran its own life insurance programs, with separate plans specifically created for World War I, World War II and the Korean War. By 1956, the military had closed to new enrollments all of the programs insuring combat forces.
To provide coverage for troops being sent into harm's way in Vietnam, Congress adopted legislation in September 1965 - proposed by the life insurance industry - that created the Servicemembers' Group Life Insurance program.
The law required that, for the first time, the federal government would work with a life insurance company to cover war deaths. Congress also put into the law another mandate endorsed by the industry, which was concerned about the casualty rate in Vietnam.
The Life Insurance Association of America endorsed a provision guaranteeing that the government pay the full costs to the insurance company for death benefits due to families of troops killed in battle.
Nine days after President Lyndon B. Johnson signed the bill into law on Sept. 29, 1965, the VA awarded a no-bid contract to Prudential.
The first taxpayer money made its way into Alliance Accounts in 2003, as service members died in Iraq and Afghanistan, according to VA documents.
After taxpayers covered $18 million that year, annual payments to Prudential peaked at $460.9 million in 2007. Taxpayers sent Prudential $213.2 million in 2009. The seven-year total of public money going to the company was $1.7 billion, 95 percent of which went into Alliance Accounts.
Financial cushion
The VA doesn't reimburse Prudential for benefits owed to families of troops who died noncombat deaths, but it does help the insurer in another way. The agency provides a financial cushion.
To do that, it has set premium payments for service members at levels high enough to build up a so-called contingency fund, which Prudential manages. The VA says that fund held about $835 million as of June 30, 2009.
The contingency fund is too large, Lastowka said, adding that VA actuaries have determined it should hold about $230 million less. As a result, the VA lowered premium payments by 7 percent, to $26 a month, starting July 1, 2008.
In 1965, before Congress created the new insurance program, the American Legion tried to persuade lawmakers not to contract with an insurance company.
The nation's largest veterans service organization, chartered by Congress in 1919, expressed concern that the government would set and collect premiums, do record-keeping and pay for war deaths - so there would be no need for an insurance company.
"Nothing remains, really, for the commercial companies to do except realize a profit," American Legion executive John Corcoran said at a hearing on Sept. 9, 1965. "Indemnifying the lives of our servicemen and providing a degree of protection to their parents, widows and orphans is not a business transaction; it is the responsibility of the government."
Peter Gaytan, executive director of the American Legion in Washington, says the organization's position hasn't changed: "We have to overhaul the system so nobody can make profits off soldiers who died in action."