Insurelane Insurance Blog

Republican Senator Larry Craig of Idaho wants insurance payouts for injured veterans to be issued faster. Currently, it takes an average of 55 days for a veteran to receive an insurance payout.

Two years ago, Congress created an insurance program for injured veterans through the Department of Veterans Affairs. The policy, called traumatic injury insurance, provides payments to veterans who suffer from life-changing injuries.

In the program’s short history, over 3,000 veterans have been compensated for injuries to help them and their families through recovery and rehabilitation. The payouts range from $25,000 to $100,000, depending on the injury.

“Out of terrible tragedy, this is at least some good news for those who are injured and their families. That money is helping them cope during a time of incredible personal challenges,” said Senator Craig.

The nearly 2 month delay for payment is because injuries must be approved in a 3-step process by service members, medical experts, and service officials — who then have to complete an 8-step application form. Payment is finally received around 4 days after the entire process is completed.

Craig is proud of the program’s success, but thinks it can improve. He wants Veterans Affairs to “see how they can speed up the process.”

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A bipartisan group of legislators in the U.S. House of Representatives designed a bill to expand and improve the National Flood Insurance Program (NFIP), which provides affordable insurance coverage for Americans living in flood risk areas.

The bill would raise the NFIP’s funding by almost $1 billion, and would increase the maximum coverage payouts for insurance claims. It also aims to address many of the NFIP’s current weaknesses.

Currently, the NFIP provides $250,000 in coverage for a home’s structure, $100,000 for the home’s contents, and $500,000 for commercial buildings. The new legislation bumps up coverage maximums to $335,000, $135,000, and $670,000, respectively.

The maximum payout increase is meant to update NFIP coverage to today’s market prices.

The legislation will also increase fines for lenders not enforcing federally mandatory flood insurance regulations. All homeowners who live in floodplains or have federal mortgages are required to have flood insurance.

“Congress must act now to modernize this important safety net for homeowners,” said Republican Representative Judy Biggert of Illinois, the ranking member of the House Financial Services Subcommittee on Housing and Community Opportunity.

“The 2005 Gulf Coast hurricanes showed the nation how important the National Flood Insurance Program is to the average homeowner… The program needs to provide a financial safeguard for homeowners while protecting the interests of taxpayers,” Biggert added.

The bill is co-sponsored by Democratic Representative Barney Frank of Massachusetts.

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Colorado’s House of Representatives is expected to introduce legislation to roll back a law that allows insurance companies to set small group insurance rates based on members’ health.

Currently, companies selling small business health insurance are able to charge higher plan rates based on age, location, industry, existing medical conditions, and claims history of their members. The law only applies to businesses with less than 50 employees.

Supporters of the new bill say small businesses and employees are hurt with unfairly high insurance premiums because of this law.

“[The goal is to] make health insurance for small business more affordable and more easily accessible,” said State Representative Tom Massey. “We hope to increase coverage.”

The measure is facing strong opposition from the insurance industry. They argue the roll back will decrease competition in Colorado, leading to higher rates in the long run.

Industry representatives also point out there is a provision in the current law offering discounted rates for healthier members. If the new legislation is passed, the discounts will be taken away. One study done by the Colorado Association of Health Plans found twice as many small businesses benefit from the current law then are hurt.

But lawmakers still contend that the higher set rates are making health coverage too expensive.

“We think it will be very beneficial for small businesses in Colorado. And long term, it will benefit Colorado’s economy,” said Massey.

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