Grace settlements' impact on CARD

To the Editor:

The Center for Asbestos Related Disease (CARD) has had several people asking questions about what the proposed W.R. Grace settlements could mean to CARD and to patients who receive healthcare at CARD. It is important to understand that the cleanup and people who have individual claims against W.R. Grace could benefit from these settlements. However, the settlements will have no impact on CARD or the patients who come to CARD for healthcare unless that individual has their own claim against W.R. Grace. Therefore, we thought it might be important to explain these settlements in a little more detail. We are not legal experts, but here are the basics.

Recently, the U.S. Justice Department issued a press release announcing a $250 million settlement in the W.R. Grace bankruptcy proceedings, ongoing since the company’s 2001 Chapter 11 filing. According to a Justice Department consent decree, the money will be used to reimburse the federal government for the costs of cleanup. According to published reports the agreement would settle a government claim to recover expenses for past and future costs of asbestos cleanup in Libby homes, businesses, schools, and public places. By the EPA’s own estimate, $168 million has been spent in Libby to date and another $175 Million will be needed.

In addition, Grace has announced the formation of a trust, which it pledges to fund to the tune of $3 Billion to cover the costs of civil damages (past and future) it expects will be levied against the multinational, and financially vigorous, corporation for asbestos claims. However, one must realize that only 1 percent of claimants (individuals and families) with suits filed against Grace are from Libby. In fact, the attorney who represents many Libby claimants and sat on the committee that negotiated the civil side of Grace’s bankruptcy proceedings, Jon Heberling, voted against the settlement as it was “too uncertain for Libby” and “Grace made no special provision for Libby.”

It is important to note that this consent decree makes no mention of money being earmarked for healthcare or to fund the healthcare providers or their organizations in Libby who provide treatment and services to those who suffer from asbestos-related disease. Libby’s CARD clinic treats nearly 2300 patients, most of them local residents. The primary source of funding for the CARD is fee-for-service; a patient comes in for treatment and likely pays for the visit with personal insurance or one of the uncertain asbestos healthcare benefit programs. Fees collected cover only half of the CARD’s operating expenses. To date, the CARD has not received any funding directly from Grace; neither will the CARD benefit from any of the above settlements.

Although the Grace-funded Libby Medical Program continues to deteriorate in covered benefits, and the limited LAMP program has secured enough funds to last another year, coverage for healthcare is still a challenge. The CARD remains committed to providing healthcare for asbestos related disease and is working with community groups to find long-term healthcare solutions for those exposed to Libby asbestos. The CARD also plans to further develop its research and foundation activities to generate badly needed capital funds.

CARD is committed to patients and will continue to be an organization in the Libby community committed to providing healthcare, research, and outreach related to Libby amphibole asbestos related diseases.

Michael S. Giesey, president Board of Directors