N001301
Wednesday, January 02, 2002 4:25 PM
Interim Final Rules
While I am not in a position to question the interpretation of the legal
issues involved in the classification of certain items as collateral sources,
I find it quite difficult to place a number on their magnitude. If for
example, New York State Workmans Compensation and Social Security Survivor
payments are to be deemed collateral sources, it appears virtually impossible
to determine the amount of the offset. What life expentancy tables will be
used?...IRS publication 939 values?...single life annuity tables?..something
else. Even establishing the appropriate annuity factor, it brings into
question why life expentency is a valid criteria. If for example the
surviving spouse remarries, she would lose her benefit. The same situation is
relevant for benefits received under Workmans Comp, as the surviving spouse ,
upon remarriage, would receive a lump sum of $50, 000 and no further
benefits. Many similar difficulties are not addressed in the regs. For
example, life insurance proceeds paid to a single individuals sibling would
not be a collateral source if the deceased died intestate in NY because that
sibling would not receive anything under the intestacy laws of NY. This
presents the classic case of form over substance working at variance with the
stated guidelines of the regulations to provide fairness and consistency.
There is also the issue of the Workmans Compensation carrier attempting to
recover a portion of payments made as well as future payments. In the case
of NY, this could be as much as 2/3 of said present and future payments.
Unless these and a myriad of other similar issues are clarified, the tables
are rendered useless in approximating a potential award.
Submitted by:
Father of deceased
Individual Comment