BROKEN TRUST FUND

A vote against an asbestos trust fund bill in the Senate last week gives lawmakers a chance to improve the legislation to ensure fair compensation to those sickened by the mineral. The concerns of both liberals and fiscal conservatives who opposed the bill can be answered by putting more money into the fund.

Under the bill, which was stalled on a procedural vote last week, asbestos makers and insurers would contribute a total of $140 billion to a trust fund. Victims, who would no longer be able to sue in court, would receive from $25,000 to $1.1 million based on the severity of their illness. This is too little for victims who will basically suffocate to death.

About 10,000 Americans die from asbestos-related causes every year, according to the Environmental Working Group. Asbestos was used until the 1980s for insulation, building materials, auto parts and other products. Asbestos fibers are easily inhaled and can cause lung cancer and other lung damage. Symptoms often take decades to develop.

The court remedy is slow, uneven and lawyers end up with much of the compensation money. Some victims have received millions of dollars, but most have received nothing as dozens of companies that made or used asbestos have sought bankruptcy protection. Some victims die before their cases are resolved.

The problem with the trust fund is that it doesn’t contain enough money. Republican Sen. John Ensign of Nevada raised a procedural objection to the bill, saying it violated a congressional limit on spending because taxpayers could be left to bail out the fund if it ran out of money. Sixty votes were needed to overcome the objection. The measure fell two votes short, with Maine’s senators voting to move the bill forward. Even if the bill overcomes Sen. Ensign’s objections, it would require another vote for passage on the Senate floor.

The bill’s supporters have vowed to bring the measure back for another vote. Before doing so, they need to improve the fund by, for instance, having more funding available in the early years. Asbestos makers and insurance companies should contribute more to compensate victims and to ensure that the fund doesn’t run out of cash.

Under the bill, asbestos manufacturers would have their payments capped at $27.5 million per year for 30 years, for a total maximum liability of $378.5 million. A study last year by Public Citizen found that the 10 largest asbestos firms would pay nearly $26 billion under the current system of lawsuits. According to the report, Dow Chemical projects its future asbestos liability to be as much as $2.2 billion between 2004 and 2019. In fact, the company’s stock price is expected to increase in price if Congress approves the trust fund because that system would save the company money.

A trust fund, rather than stricter requirements for lawsuits, which some senators are advocating, is the right solution. But, the fund must be big enough to help victims without leaving taxpayers paying part of the bill.