Confusion lingers over health care of Grace claims
The settlement between W.R. Grace & Co. and the Official Committee of Asbestos Personal Injury Claimants, announced on April 7, is being met with skepticism by some in the Libby community.
Many worry that there is a lack of specific information about how funds will be dispersed among claimants.
The issue of health care for those contaminated by asbestos in particular is raising suspicion among claimants. While the settlement offers approximately $2.9 billion in cash and equity, it does not specify the future of the several health care programs currently operating in Libby.
The largest medical program funded by Grace is the Libby Medical Program. It was set up in 2000 to aid in treating, diagnosing and covering costs of diseases related to asbestos.
While William Corcoran, head of Media Relations at the company, insists that “Grace is committed to and will keep funding the Libby Medical Program,” there is no legal requirement for them to do so. The program is run by Health Network America, out of New Jersey.
Another program known as the Libby Asbestos Medical Program (LAMP), resulted out of a one-time payment by Grace in order to settle a fine imposed by the Department of Justice.
Grace reiterated their support for the Libby Medical Program in a press release on April 8, but Lincoln County Commissioner Rita Windom expressed her concern in meetings last week that there were no provisions for health care.
She emphasized that it was one of the major components of the asbestos problem and the most import to Libby residents.
One such resident is Red Busby, listed as suffering from “severe” asbestos poisoning, who has received no assurances, in writing, that his medication, oxygenation and yearly check ups will continue once the settlement is agreed upon.
“I’ve heard nothing,” he said. “Whatever they do will be on their own part.”
John Heberling, a lawyer in Kalispell who represents Busby and other Libby victims, agrees: “There is no specific agreement that Grace will continue funding the Libby Medical Program or if the plan would continue now that the settlement is reached.”
The future of health care represents only one of the problems expressed by those familiar with settlement.
“This settlement represents the whole pie, but we have no idea of determining how big our slice of the pie is going to be,” added Heberling.
The sum will be divided between 120,000 plaintiffs, represented generally by 11 law firms across the country. Heberling predicted it will take one to two years before the money is distributed.
Only a few specific elements of the deal are known. A trust fund will be established with an initial deposit of $250 million, followed by an additional $1.55 billion over from 2019 through 2034. The fund will be guaranteed by 50.1 percent of Grace common stock. Claimants will also be allowed to buy 10 million shares of Grace stock at $17 a share
Of the eleven members on the Personal Injury Committee, Libby represented the only vote against approving the settlement.