Protections needed for disaster victims

The aftermath of Hurricane Katrina revealed significant shortcomings in our country's ability to deal effectively with a national disaster. The obvious and immediate needs were for the basics of life: food, water, and shelter. Now the focus must be on restarting the systems of daily living. To rebuild their lives, hurricane victims must have accessible and affordable health care, protection from unfair financial practices, and effective communications services.

While some steps have been taken, more can and should be done by the government and private sector to assist those affected by this and future disasters.

Health care. States' Medicaid programs should be temporarily opened to victims whose incomes are below the federal poverty level--$9,570 for an individual and $19,350 for a family of four--for five months. That helps states that have taken in relocated victims by shifting the extra health-care costs to the federal government, and it helps evacuees by suspending most of the paperwork needed for enrollment.

Private health-insurance plans should also be flexible. The government is helping victims keep their insurance by extending the time allowed to find a new policy without losing coverage for pre-existing conditions and by extending the time to apply and pay for interim COBRA insurance. CU applauds this move.

The pharmaceutical industry should do its part by expanding existing low-income assistance programs to serve those in affected areas.

Financial matters. Some creditors have announced programs that allow Katrina victims to delay a payment without penalty, but lenders aren't required to provide that relief to borrowers, and the burden may be on consumers to ask for a change in their payment schedule. Most lender programs aren't guaranteed to last long enough for victims to recover. Congress should set standards that apply to consumers affected by a disaster: limiting interest accumulation and fees, not reporting late payments to credit bureaus, and establishing how long accommodations must remain in effect.

Reduced security for records containing financial and personal information in the affected areas makes victims ripe for identity theft. All consumers need strong anti-ID-theft protections from Congress and state legislatures. For disaster victims, the time that it takes to remove negative credit information generated by a thief can interfere with prompt access to the credit, insurance, and employment that they badly need.

Communications services. Part of the nation's airwaves should be set aside for open wireless Internet networks over which public-health and safety officials can communicate when the usual networks fail. This resilient technology already exists: It was used in a limited capacity by federal and city officials in New Orleans to establish emergency communications and at shelters to help evacuees locate family members. Widespread availability and usability of these networks should be part of any effective disaster-preparedness strategy.

For victims of Katrina and other disasters, cell phones may be the only means of connecting with friends, family, and officials. Such people should be provided with emergency replacement equipment at reduced or no cost. Consumers should not lose cell-phone service for nonpayment during an evacuation-and-recovery period or be charged for out-of-state use, early cancellation, or times a telecommunications service wasn't working during and after a disaster. And deposits should be waived for displaced residents who establish accounts in their new location.

then	& now

1981		2005
You see them everywhere--the simultaneously tuned-in, tuned-out people. You'll recognize them by their enigmatic smile and faraway look as they jog, skate, commute, or wander the aisles of the supermarket. When answering questions, they use an unnaturally loud voice, though not unfriendly. That's how we described, in 1981, those folks who first sported what we called walkaround tape players. Portable, personal, and already chic, these gadgets enabled you to listen to an entire cassette. Now, thanks to flash memory, the iPod Nano, at right, stores up to 1,000 songs yet weighs just 1.5 ounces. Portable, personal, and already hip, the Nano is our top choice among MP3 players. And like the earlier trendsetters, Nano fans are recognizable by their enigmatic smile and dreamy look as they listen to their favorite music.