Government Insurance

-by David Sherbula

I think maybe the Republicans are right. The U.S. Government probably has no business being in the insurance business. But since it already is, it should start off small in eliminating programs. Like Representative Paul Ryan (R-WI) said, we need to wind these programs down slowly, so as to not create problems for those people who were counting on them.

I say we start with the U.S. Government Flood Insurance program. Let's put it on Ryan's Roadmap. It is not widely used and is a consistent loser. (That's why it was created. The private sector wouldn't touch it.) 

Congress created the National Flood Insurance Program (NFIP) in 1968 as the government's response to the rising cost of taxpayer funded disaster relief for flood victims and the increasing amount of damage caused by floods. The Federal Emergency Management Agency (FEMA) manages the NFIP and oversees the floodplain management and mapping components of the program.

...Over 20,000 communities across the United States and its territories participate in the NFIP by adopting and enforcing floodplain management ordinances to reduce future flood damage. In exchange, the NFIP makes Federally backed flood insurance available to homeowners, renters, and business owners in these communities.

Flood damage is reduced by nearly $1 billion a year through partnerships with communities, the insurance industry, and the lending industry. Further, buildings constructed in compliance with NFIP building standards suffer approximately 80 percent less damage annually than those not built in compliance. And, every $3 paid in flood insurance claims saves $1 in disaster assistance payments.

Flood insurance claims and all operating expenses of the program are paid for through premiums. None of these costs are paid by taxpayers.

How could the Republicans vote against eliminating a government insurance program that always loses money? How would Sen. DeMint of South Carolina vote on that? What about ConservaDem Mary Landrieu of Louisiana. Senator Cornyn of Texas, are you in? How about you Senator Shelby?  Where do you stand on Government Flood Insurance Senator Lindsey Graham and Mitch McConnell? And what about all you Republican governors with the big yaps-- and the big floods-- like ole Haley Barbour in Mississippi, Bobby Jindal in Louisiana, Tim Pawlenty in Minnesota, Mark Sanford in South Carolina or Argentina, Sonny Perdue in Georgia and John Hoeven of North Dakota? 

I've seen some pretty horrible floods in Des Moines Senator Grassley; how would you vote?

Common sense tells you not to build in a flood plain or hurricane prone area. If the private sector refuses to insure you, then why should the Government? Why don't people who make a choice to live in these areas have to assume the responsibility? 

I can only hope some member of Congress puts this up to a vote. We'll see who is really against Government Insurance then. On the record.


Note from Howie: Let's see if we can get Darrell Issa, Gary Miller, Buck McKeon, Mary Bono Mack, David Dreier, Ken Calvert and Tom McClintock to introduce a simultaneous bill in the House banning government earthquake insurance. That would go a long way towards making California's congressional delegation a whole lot saner. And speaking of Republican hypocrisy and deceit, the chart showing U.S. job losses (above) and this video explaining the two-faced nature of Republican carping (below) just came out today: