GAO Studies Payment Denials to Wounded Vets

The Government Accountability Office (GAO) is reviewing the Traumatic Servicemembers Group Life Insurance (TSGLI) program started by Congress in 2005. Like commercial accidental death and dismemberment policies for civilians, it was intended to provide a quick lump sum benefit to help address the financial burdens facing Servicemembers before they start receiving veterans’ benefits. The benefits can range from $25,000 to $100,000 depending on the type of injury.
A 2009 GAO audit raised several concerns about how the program is administered and the denial of claims. It found a lack of quality assurance that claims decisions were accurate, consistent and timely, and that the Department of Defense (DoD) and the Department of Veterans Affairs (VA), which both administer the program, lacked reliable data for overseeing claims.
Representatives of TSGLI said improvements have been made in reviewing claims. For fiscal year 2009, the overall approval rate is 73 percent, with the Marines, Air Force and Navy rates between 73 and 81 percent. The Army, which files the most claims, has an approval rate of 67 percent. There are no incentives for a branch of service to deny or approve claims. To read this story in its entirety, please go to:http://www.military.com/news/article/insurer-denies-payment-to-wounded-vet.html?wh=news