FEMA Offensive

FEMA’s authorized overbilling by insurance companies is something I have seen next to nothing about in the press and media. Yet when FEMA announced it is trying to reclaim $485 million that was overpaid to Hurricanes Katrina and Rita victims it is news. And just what does FEMA’s offensive look like for hurricane victims? This from Oyster

Occasionally I help out one of my tenants with his FEMA rental
assistance forms (he’s illiterate). The other day, I had to tell him
that the most recent FEMA letter he received stated that he must give
back $10k in assistance he received over the past 18 months. “Why?” he
asked. “It doesn’t say”, I replied. Then he commenced to kneel and
pray, and I left his room. This man lost everything in the flood, and
now washes dishes in a great restaurant in the Quarter. He makes
minimum wage, and $10k represents about two-thirds of his yearly income.

That’s Offensive.

As Oyster points out the amount overpaid to hurricane victims represents just 7% of the total paid. I wonder what percentage of taxpayers money was eaten up by the fraudulent overbilling done by insurance companies? Oh that’s right the feds have no idea. I’m sure they’d like to keep it that way. And so far that’s working out for them.

Where is the press on this?

Allstate Sucks up Your Tax Dollars


Federal Judge Orders Dept of Justice to Enter in Insurance Companies Katrtina Fraud Case or Show Cause


Taylor calls for subpoenas related to insurance companies’ Katrina fraud


Scout’s Obsession with the GAO: Feds don’t know what they’re paying for

6 thoughts on “FEMA Offensive

  1. oyster says:

    Thanks Scout, as always, for spreading the word about this important story.

  2. virgotex says:

    When I first saw this, I had one question: how are they going to enforce non-re-payment?
    Credit reporting, wage garnish, jail time?
    Talk about blood from a stone.

  3. jeffrey says:

    This particular juxtaposition of the “scandal” that has been made of the amount of money “wasted” on actual storm victims with the “non-story” of the overcompensated insurance companies is pretty much all you need to know about your classist American press.

  4. Tena says:

    that he must give back $10k in assistance he received over the past 18 months. “Why?” he asked. “It doesn’t say”, I replied.
    Holy shit – offensive is putting very mildly. What the goddamn hell is going on? These people need help to get any kind of fairness out of the government. You are helping. And damn am I glad- cause damn few people visibly are helping. I said visibly, cause I’m sure there’s more going on than I know.
    But sheeeit! I’m just sick all the way through over every single bit of this bullshit – just sick.

  5. MapleStreet says:

    I hate to say it, but your poor, illiterate tenant can’t defend himself. If you sue a large insurance company, they are experts at using court tactics to delay / deny .
    Its called picking the low-hanging fruit.
    (Plus I wonder how much your tenant gave to the Bush campaign?)

  6. scout says:

    Oyster I should thank you sir

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