FAQ: Adjustment to Compensation
Payments
Adjustment to Compensation Payments
Why was $5,000 held back from
my disease Level 2 fixed payment and what was the outcome
of the June 2002 hearings with respect to releasing this holdback?
Since the inception of the administration of the 1986-1990
compensation plans, a $5,000 sum payable under disease level
2 was held in trust in accordance with Section 7.03 of the
Transfused
Plan (Schedule A) and Hemophiliac
Plan (Schedule B).
This $5,000 holdback
was created as a temporary safeguard to ensure a minimum level
of benefits to all claimants.
In June 2002, a motion for directions was heard by the three
Courts having jurisdiction over the 1986-1990 Hepatitis C
Settlement Agreement for directions with respect to the payment
of the holdback. On the recommendation of the Joint
Committee coupled with the advice of actuaries and medical
experts, the Courts decided that the $5,000 holdback is to
be paid to claimants so entitled.
What about the 70% and $75,000
limitations on loss of income or loss of support compensation?
Under s. 7.03 of the Transfused
Plan (Schedule A) and Hemophiliac
Plan (Schedule B), the Joint Committee may bring a motion
every third anniversary of June 30, 2002 asking the Courts
to determine "whether...the restriction on the payment
should be amended or removed in whole or in part" with
respect to the 70% and $75,000 limitations both applicable
in sections 4.02 (loss of income) and 6.01 (loss of support)
of the Transfused
Plan (Schedule A) and Hemophiliac
Plan (Schedule B).
On October 19, 2004, the Courts removed the 70% limitation and have increased the $75,000 limitation to $300,000.
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