Henry Waxman, the U.S. Congressman representing California’s 30th District, which includes West Hollywood and Beverley Hills, is spittin’ mad at private contractors in Iraq.
According to CNN, Waxman raged yesterday that the Pentagon allows private contractors to negotiate worker’s compensation without any major concern for competition between insurance providers to make sure taxpayers get a good deal. See, we bankroll workers’ comp for such companies, but the state department, the corps of engineers and other federal bodies that aren’t the Pentagon make carriers compete to offer the federal government their coverage.
Meanwhile, insurance providers that sell the insurance to contractors for the defense department, like KBR and Blackwater, who then send us the bill, make huge profits of nearly 40 percent, according to Waxman. CNN quoted Waxman saying that during the last half decade, the four largest private insurers have made almost $600 million in profits through this system.