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2005 Annual Report

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Schedule Q - Summary of Joint Committee Work

  1. The Joint Committee (“JC”) has a mandate to implement the 1986-1990 Hepatitis C Settlement Agreement and Plans and to supervise the ongoing administration of claims.

  2. The JC worked on a regular basis with the Administrator to assist in getting claims processed as efficiently as possible. The JC held quarterly meetings with the Administrator and liased with the Administrator as follows:

    1. met with the Administrator to ensure adequate management and staffing was in place;

    2. tracked claim activity and efficiency of payment of claims;

    3. evaluated the performance of the administrator;

    4. developed ongoing strategies to improve claim processing time and claimant satisfaction; and

    5. monitored complaints.

  3. The JC prepared additional material for Court Approved Protocols and Standard Operating Procedures to govern and guide the Administrator in handling claims and claimants.

  4. The JC continued to closely monitor the sufficiency of the Trust Fund, the performance of the portfolio of assets held by the Trust Fund, whether the portfolio components are meeting benchmark targets and disbursements out of the Trust Fund. In summary, the overall return was again very substantial with total assets continuing to grow after deducting total disbursements for compensation payments and administrative costs. Total compensation paid to class members amounted to approximately $430 million million at the end of year five.

  5. In the fifth fiscal year, the JC concluded its work it commenced in the fourth fiscal year, namely, a mini-review of the cohort size to determine whether there were sufficient funds in the Trust Fund to prudently lift the two remaining restraints pertaining to income loss and loss of services. Pursuant to court hearings in all three jurisdictions, the 75% ceiling pertaining to income loss and loss of services was lifted and the gross income amount for calculating loss of income was increased from $75,000 to $300,000. As a result, substantial benefits flowed to a large number of class members.

  6. In the fifth fiscal year, the JC has committed a substantial amount of time working with actuaries, statisticians and medical doctors to prepare for the triennial hearings pertaining to the overall sufficiency of the Trust Fund. The JC anticipates having a medical modeling report, a medical report and an actuarial report by the summer of 2005 in preparation for sufficiency hearings later in 2005.

  7. In November, 2004, the Federal Minister of Health announced that the Government of Canada intended to "enter into discussions on options for financial compensation to people who were infected with hepatitis C through the blood system before January 1, 1986, and after January 1, 1990". Although some limited discussions have ensued, the JC fully understands its first and foremost duty to the class members and intends to ensure that there will be no negative effect on current benefits or future entitlements of class members.

  8. The JC monitored appeal decisions for claimants whose claims were denied by the Administrator. The JC provided guidance to Fund Counsel with respect to difficult and exceptional cases.

  9. The JC continued to monitor legal proceedings in Alberta which started off as a challenge to the 1986-1990 Hepatitis C Settlement Agreement.

  10. The JC is responsible for making recommendationsto the courts pertaining to the appointments of service providers, negotiating budgets for service providers, obtaining court orders pertaining to approval of their budgets, instructing service providers and receiving and assessing advice and reports from service providers. The service providers to which this description applies include:

    1. the trustee;

    2. the investment managers;

    3. the investment consultants;

    4. the auditors;

    5. the actuaries;

    6. physicians who assist in medical modelling; and

    7. epidemiologists.

  11. The JC continued to liase with Canadian Blood Services and Hema-Quebec on traceback issues and obtaining claimants’ medical records from hospitals and on various issues pertaining to the stored frozen blood samples.

  12. The JC continued holding bi-weekly conference calls to discuss and resolve administrative issues as they arose. The JC also held periodic conference calls with Fund Counsel, the Administrator and Justice Winkler’s monitor to discuss and resolve issues as they arose.

  13. The JC has also done the following to improve the administration of the Plans:

    1. addressed the complaints and inquiries of class members including meetings with class members and representatives of class members;

    2. met with physicians/experts to keep abreast of medical science pertaining to HCV;

    3. met with physicians/experts for information on new HCV testing developments and treatments;

    4. met with physicians/experts in medical modeling to undertake an ongoing research study of claimants;

    5. monitored costs of service and negotiated budgets with service providers and made recommendations with respect to ongoing and exceptional costs; and

    6. responded to direction from the Courts of Ontario, British Columbia and Quebec with respect to the implementation of the plan and issues pertaining to sufficiency.

  14. The JC continues to appear before the Courts of Ontario, British Columbia and Quebec to seek orders as necessary for the implementation and administration of the Plans and to report to the Courts on material issues.

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