Washington==An amendment to asbestos injury claims legislation designed to win support of business and insurance interests will be taken up tomorrow when the Senate Judiciary Committee resumes work on the bill.
But the amendment, which strengthens the criteria that claimants with terminal illnesses will have to meet to secure fast payment during the startup phase, is unlikely to win the support of key Democrats, according to several lobbyists who have followed the bill for several years.
And, even in the unlikely event the amendment wins the support of Sen. Patrick Leahy, D-Vt., and Sen. Dianne Feinstein, D-Calif., it is still unlikely to win the backing of the big insurance companies who will pay the dominant part of the industry's $46 billion contribution to the $140 million trust fund that would be created to pay claimants, the industry lobbyists said.
"It is necessary, but not sufficient," one industry lobbyist involved in the talks said.
Moreover, the proposed amendment has prompted the AFL-CIO, which represents victims' interests, to prepare a detailed critique on why it can't support the bill that will be released tomorrow when work on the bill resumes, according to other sources.
The latest proposal, in the form of a manager's amendment, was drafted by Judge Edward Becker, a former federal appeals court judge. He has been working with Sen. Arlen Specter, R-Pa., for over a year in an effort to shepherd legislation establishing an alternative claims handling mechanism for those injured by exposure to asbestos through Congress.
The latest initiative backs the view of most insurance industry lobbyists that the bill will be reported out of committee, probably by mid-June. But, even given committee support, most observers view it as still likely to fail to pass the Senate this year.
The manager's amendment was proposed by Judge Becker. It deals with the startup phase of the claims handling mechanism created by the bill. The bill calls for creation of a trust fund to be populated by defendant, insurer and existing trust fund money, that will pay claims over a 27.5-year period.
The work on the bill was supposed to resume today but its start was delayed until tomorrow. The committee will also work on the bill Thursday, committee staff said.
The proposed amendment will require those with an "exigent claim," that is, suffering from mesothelioma, a terminal illness, to win the personal approval of the fund administrator before being paid.
Specifically, the amendment will say that "the administrator or interim administrator make a determination of exigency upon initial receipt of an application," and not accept the diagnosis of a qualified specialist.
It is being added, Judge Becker said, "out of stakeholder concern about the absence of a process whereby defendants can challenge the validity of the exigent claim." The concern, Judge Becker said, is that the legislation not create an "incentive for the defendants to 'settle' with all claimants despite their actual status of exigency."
A lobbyist familiar with labor's position says that the amendment "creates an additional hurdle for people who are dying" to be paid quickly. It also signals, the lobbyist said, that the committee "is abandoning its even-handed approach on the bill in favor of business."
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