Proposed asbestos trust would quickly go broke
Monday September 19, 2:45 pm ET
WASHINGTON DC. - According to a study released Monday, a proposed national trust fund for asbestos victims will go broke within three years of its' start. The analysis, done by the economic consulting firm Bates White, concluded that the proposed fund would face claims between $301 and $561 billion dollars, while the proposed budget of the fund was only $140 billion.
The estimate was much larger than an estimate released by the Congressional Budget Office last month, which predicted payouts between $120 and $150 billion over the next 30 years. However, the CBO estimate did not account for the probable rise in claims filed, instead using the current rate. The Bates White analysis included this variable, as the fund would create a new entitlement for those affected by cancer, but not currently compensated in court.
