GAO Report Confirms Need for Pallone’s Bill on Flood Insurance Transparency

FOR IMMEDIATE RELEASE
January 10, 2017


Washington, DC – Today, the U.S. Government Accountability Office (GAO) published a report on the compensation paid to Write-Your-Own (WYO) companies that administer the National Flood Insurance Program (NFIP). The report confirms the need for Congressman Pallone’s Flood Insurance Reimbursement Standards Transparency (FIRST) Cap Profits Act, which he introduced last year and will introduce in the new Congress. The bill would require increased oversight and transparency of the National Flood Insurance Program (NFIP) by the Federal Emergency Management Agency (FEMA) and cap the profits of private companies providing flood insurance at 10%.

The report states “FEMA continues to lack the information it needs to incorporate actual flood expense data into its compensation methodology as well as determine how much profit WYO companies make and whether its compensation payments are appropriate.” In July 2016, Pallone led a bipartisan letter asking FEMA to fulfill its legal obligation to provide oversight of the WYOs.

“It is shameful that private insurance companies have profited from Sandy while failing to meet their basic obligations under the NFIP. This reports confirms yet again that FEMA has failed to provide proper oversight of those entities - especially when Congress has already empowered and required the agency to do so,” said Pallone. “FEMA has a responsibility to ensure that policy holders are treated fairly and charged a fair market price for the service they purchase, and it better get to work.”

In May, Pallone led a bipartisan letter from members of the New Jersey Congressional delegation to Administrator Fugate of the Federal Emergency Management Agency (FEMA) requesting that it take swift action on behalf of those who have suffered from documented, widespread fraud perpetrated by private insurance companies in the aftermath of Superstorm Sandy. The lawmakers asked for an explanation of why it is taking FEMA so long to process the insurance claims of these victims and to detail the steps FEMA is taking to swiftly rectify the situation.

After that letter was sent, Pallone and Congressman Bill Pascrell (NJ-09) met with Roy Wright, Deputy Associate Administrator for Insurance and Mitigation at the Federal Emergency Management Agency (FEMA), to demand that FEMA take swift action to process claims for victims of Hurricane Sandy.

Congressman Pallone Releases Critical Report on Dangerous Medical Injection Practices

Pallone requested GAO report on injection safety and risks

WASHINGTON, D.C—Congressman Frank Pallone, Jr. (NJ-06), Senior Democrat on the Energy & Commerce Health Subcommittee, today released a U.S. Government Accountability Office (GAO) report examining unsafe injection practices.   Due to what appeared to be a significant rise in healthcare transmission of hepatitis, Congressman Pallone requested the GAO report in September 2011 to help Congress identify gaps in current healthcare practices and improve patient safety while reducing associated costs.

The report found that between 2001 and 2011 there have been preventable, widespread outbreaks of bloodborne pathogens related to unsafe injection practices.  According to the report, unsafe injection practices have resulted in substantial costs for individuals and the health care system, as well as long-term health consequences including liver cirrhosis, liver cancer or even death. 

Though data are limited, the study found that from 2001 to 2011 there were at least 18 outbreaks of viral hepatitis B and C associated with unsafe injection practices such as reusing syringes for multiple patients in ambulatory care settings (ACSs).  In these known outbreaks nearly 100,000 individuals were notified to seek testing of possible exposure to viral hepatitis and HIV, and 358 of them were infected with viral hepatitis.  The GAO asserts in the report that the full extent of the outbreaks may be underestimated due to a lack of adequate reporting and reporting requirements, in addition to reporting lag because many patients are unaware they have been infected.

While it is difficult to estimate the financial costs from these outbreaks, data reported from the Southern Nevada Health Department following the largest known bloodborne pathogen outbreak due to unsafe practices in the U.S. estimate approximately $30,000 in short-term costs alone per infected patient.  The study also estimates that nearly $14 million would be needed to cover testing for potentially exposed individuals.

“The findings in the GAO’s report of unsafe injection practices are alarming and make a clear case that more must be done to identify and control unsafe injection practices.  I was particularly disappointed to learn that in New Jersey, 29 patients of a hematology-oncology clinic were infected with hepatitis B due to the clinic’s mishandling of medication vials and reusing saline bags for multiple patients” said Pallone.  “While steps have been taken by HHS to improve unsafe injection practices, the report sheds light on a problem that does not receive adequate attention and highlights that we need more action to prevent these dangerous outbreaks.”

You can view the full report and executive summary here.