Rep. Scalise responds to GCCF request for public comment on draft methodology

Washington, DC -- Congressman Steve Scalise today responded to the Gulf Coast Claims Facility’s (GCCF) request for public comments on the proposed draft methodology for settling claims. In a letter to Ken Feinberg, head of the GCCF, Scalise critiqued the organization’s transparency while expressing concerns with the appeals process for denied claims, the lack of scientific peer-review for the GCCF’s economic recovery timeline for the Gulf Coast, and the process by which GCCF determines whether losses are directly attributable to the oil spill.

“After hearing from people and businesses throughout Southeast Louisiana, many of my concerns about the GCCF still exist,” Scalise said. “People are still not able to get answers when their claim is denied or underpaid, and we are not seeing the transparency in payment data that President Obama and Mr. Feinberg promised. Mr. Feinberg needs to make changes to address these much needed reforms and also provide adequate answers to explain why he shifted 150 jobs from the Hammond claims processing facility and moved them to other states outside the Gulf Coast, which will keep families affected by BP’s disaster from getting the timely answers they deserve.”

In the letter, Scalise asked Mr. Feinberg to:

• Release any and all criteria used by the GCCF when calculating payments, including how the GCCF evaluates whether a loss was caused by the oil spill
• Ensure that any reports citing a timeline for the economic recovery of the Gulf Coast have been thoroughly and rigorously peer-reviewed.
• Review and revamp the appeals process for denied claims to ensure that all claimants have a fair appeals process.
• Provide additional statistics on all submitted and paid claims, pointing out the Feinberg has repeatedly promised complete transparency, but the information has not been adequately broken down by industry and geography.
• Maintain a local GCCF presence along the Gulf Coast so that those affected by the oil spill can speak directly with someone who can answer questions about their claim.

The full text of the letter sent by Scalise follows below.

Dear Mr. Feinberg:

After hearing from individuals and businesses in my district and throughout Southeast Louisiana, I have many concerns remaining about the Gulf Coast Claims Facility (GCCF) payment process. Please give strong consideration to the following concerns as you review public comments and revise the interim and final payment draft methodology.

Firstly, your draft methodology does not go far enough to reveal the formula used to calculate payments, specifically with regard to how GCCF determines whether losses are directly attributable to the oil spill. Your draft methodology announcement states that “GCCF will evaluate each submission to determine whether a loss was caused by the Oil Spill,” but you do not mention how GCCF performs that evaluation. This is particularly concerning considering the recent criticism you received from the Justice Department for using strict industry categories to determine eligible and ineligible payments. I again urge you in the strongest terms possible to publicly state any and all criteria GCCF is using when calculating payments.

Next, any predictions on possible economic recovery of the Gulf Coast used by the GCCF must be subjected to a rigorous peer-review process in order to ensure that those who continue to suffer economic loss in the months and years to come are given proper compensation for all current and future damages. Analysis on predicted recovery should be a constant, on-going process, and I urge you to ensure that you are reviewing predictions of future loss continuously, not every four months as you specify in your methodology.

As part of your repeated promises for continued transparency, I also request that you ensure claimants will receive specific information on why their claim was denied or underpaid when they are notified of their interim or final payment offer. During the emergency six-month payment phase, claimants would, often after weeks or months of waiting, receive notification of payment or denial with absolutely no specifics on how that payment amount was calculated. I urge you to ensure that every notification of payment or denial includes clear, specific information on how the GCCF arrived at their payment decision and amount.

Additionally, I am concerned about the GCCF appeals process. While you repeatedly say that anyone can go to the Coast Guard if they feel that they have been wronged by the GCCF process, the Coast Guard had not overturned a single appeal in over 500 claims as of February 2, 2011. You have established an additional appeal process for those who have been awarded over $250,000 in damages. Yet, those receiving over $250,000 account for less than .02% of individual claimants, and less than 4.34% of business claimants. All claimants deserve a fair chance at a full GCCF appeals process, especially in light of the fact that GCCF has not provided explanations for why claimants are denied or underpaid when claimants are finally notified of their claims status.

I also repeat my request for additional statistics on all submitted and paid claims. You have repeatedly promised complete transparency, yet we still do not have enough information on submitted claims broken down by industry and geography. I again urge you to reveal metrics on both paid and denied claims, broken down by city, state, industry, and job classification, so that the public can be assured that the money is going to the individuals and businesses that have been most directly affected by the spill.

Lastly, I remind you that maintaining a GCCF presence in the Gulf Coast is absolutely essential to ensuring that Gulf Coast residents can speak to someone who can answer straightforward questions about their claim. I urge you to place evaluators in the communities that were most directly affected by the spill. You claimed that you have eliminated over 150 jobs in the Gulf Coast because “it is time to begin to downsize the massive infrastructure which has been part of the payment program.” At a time when GCCF is preparing the enormous undertaking of evaluating interim and final payments, this job-shifting out of the Gulf Coast is unjustified. I urge you to ensure that any adjustments in GCCF staffing preserves the essential need for keeping evaluators located in the Gulf region, where communities have been most directly hurt by this disaster.

To conclude, I urge you to remember that the GCCF exists to ensure that victims of this oil spill can be made whole. I repeat my calls for you to move forward in an accountable and transparent way that ensures the Gulf Coast can recover in the quickest manner possible. I appreciate your attention to these concerns.

Sincerely,

Steve Scalise
Member of Congress

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Contact: Stephen Bell
202-226-9113