House Judiciary leaders have taken the position that they will examine the problem of asbestos injury claims and litigation after the Senate produces legislation.

The asbestos fund concept has faced steady opposition over concerns that it will run out and will not be able to pay claims quickly, along with constitutional concerns that the proposed Senate system would strip asbestos victims of their right to sue.

The GAO report examined the Black Lung Program, the Vaccine Injury Compensation Program, the Radiation Exposure Compensation Program, and the Energy Employees Occupational Illness Compensation Program, focusing specifically on their design, how long it took to establish them, administration costs and their claims history.

"The federal role in all four programs has expanded significantly over time," said Robert E. Robertson, GAO director for education, workforce and income security issues, in a letter to House Judiciary Committee members. "All four have expanded to provide eligibility to additional categories of claimants, cover more medical conditions, or provide additional benefits."

While a cost increase would be expected as the programs grew, the GAO noted that other factors also played a role in raising the price for compensation. "Beyond the costs associated with expanded eligibility, increasing medical costs and new research on exposure levels and medical conditions associated with that exposure that could lead to expanded eligibility may further increase program costs," Mr. Robertson said.

It is also difficult to forecast future costs of compensation programs, Mr. Robertson noted, due to the possibility of an increasing number of claims, and lawmakers should tread carefully before establishing programs that could potentially consume a sizeable portion of the federal budget, he added.

"The difficulty in estimating the actual cost of these programs may be due to the inherent difficulty of estimating the number of claimants and anticipating expansions of the programs," he said. "However, because these programs may expand significantly beyond the initial cost estimates, policymakers must carefully consider the cost and precedent-setting implications of establishing any new federal compensation programs, particularly in light of the current federal deficit."

Mr. Robertson also offered a warning on program design, noting its potential effect on the amount of time it takes to process a claim, depending on the extent to which a claims decision can be appealed and the burden of proof required to verify a claim.

"Ultimately," he said, "these program design decisions reflect trade-offs between processing claims quickly and ensuring accuracy and fairness."

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"…Increasing medical costs and new research on exposure levels and medical conditions…that could lead to expanded eligibility may further increase program costs."