From Robert Ceniceros at Business Insurance April 11, 2013
Proposed Defense Base Act changes
The president’s proposal also would replace the current Defense Base Act program with a governmentwide benefit fund that would bill individual federal agencies for their workers comp insurance costs.
The DBA provides benefits for contract overseas workers on U.S. military bases and for workers on overseas public works projects.
Under the DBA’s current structure, federal agencies pay for their insurance through a “patchwork” of individual contracts, and its costs now exceed benefits paid “by a significant margin,” according to the budget proposal.
The proposal points out that the DBA’s caseload increased by nearly 2,600% from 2002 to 2011, with more than 11,600 claims filed in 2011.
More information is available on page 128 of the proposed budget here.