Scalise: Feinberg announcement good news, follow through still needed
Washington, DC -- Congressman Steve Scalise today issued the following statement after Ken Feinberg, head of the Gulf Coast Claims Facility (GCCF), announced that the methodology and eligibility criteria for final and interim GCCF payments will be released on February 2.
"I'm glad to see that Mr. Feinberg is starting to respond to my calls for transparency, and I expect him to addresses the remaining questions without delay," Scalise said. “While yesterday’s announcement is certainly welcomed news for the people of Louisiana who have endured nine months of hardship in the aftermath of the BP oil spill, there are still many unanswered questions Mr. Feinberg needs to answer, including the decision to pull hundreds more claims processors out of our region.
If Mr. Feinberg is truly committed to full transparency, he will release all formulas used to calculate payments throughout the process as well as provide full disclosure on all submitted, denied, and paid claims by industry and location, so that we can fully understand whether the GCCF is operating in a fair and consistent manner in the best interest of the people throughout the Gulf Coast. As this process moves forward, I will continue pressing Mr. Feinberg to quickly adjust the payment process to ensure that people no longer fall through the cracks, and will continue to demand full transparency from Mr. Feinberg and the GCCF."
On Monday, Scalise sent Feinberg a letter demanding that the GCCF increase transparency and release specific metrics on claims and payments to date. A copy of that letter follows below:
Dear Mr. Feinberg:
As a member of the House Committee on Energy and Commerce Subcommittee on Oversight and Investigations and the Congressman representing Louisiana’s First Congressional District, I write on behalf of the thousands of individuals and businesses in my state and along the Gulf Coast who have not yet been made whole by the Gulf Coast Claims Facility (GCCF) in the wake of the Deepwater Horizon oil spill. The GCCF plays a critical role in helping the Gulf Coast recover, and today I request increased accountability and transparency throughout GCCF’s management of the claims process.
Firstly, I remind you that more transparency throughout the claims process is absolutely necessary. The GCCF’s opaque nature detracts from its credibility and adds to claimants’ frustration as they try to understand why their claim was denied or underpaid. You have acknowledged this problem in town hall meetings and to Congressional offices.
I also find it unacceptable that GCCF has never released the formula by which payments are evaluated, and I remind you of statements you made to Congressional staff on January 12, 2011, that you would release the method for calculating interim and final payments within 30 days.
In light of the recent announcement that local law firms will be assisting GCCF, I agree that having more evaluators and staff located in the Gulf Coast region is absolutely essential to the effectiveness and efficiency of the claims process. Claimants must have the opportunity to speak directly to someone at GCCF who can answer straightforward questions about the status of their claim and the documentation required for it to be processed.
For these reasons, I am surprised at the news that GCCF is considering eliminating about 150 jobs at the Hammond claims processing facility, especially at a time when you have repeatedly pointed to the importance of hiring additional local personnel. This move would run counter to your previous commitments, and would make it harder to get quick answers to claimants who have questions.
Additionally, I remind you of individuals and businesses who are still waiting for their six-month emergency claim to be processed. The deadline for submitting an emergency payment passed over two months ago, on November 23, 2010. These claims must be prioritized as the transition to interim payments and final settlements continues.
To address these issues, I request the following:
1. All metrics on claims and payments, including the total number of both submitted and paid claims, broken down by state, city, industry, and job classification, and the average payment to individuals and businesses in each category;
2. The formula for how payments are calculated;
3. The total number of people employed by GCCF and working on its behalf at affiliate entities, broken down by specific geographic location and employer;
4. Any job transfers or lay-offs in claims processing that GCCF has executed or is planning to execute, including justification for such moves;
5. Specific information and documentation on the decisions leading to the removal of 150 jobs at the Hammond claims processing facility, including where those jobs are being transferred; and
6. The number of unprocessed six-month emergency claims and justification for why these claims remain unresolved.
As you know, GCCF exists to ensure that those individuals and businesses who have experienced damages and losses through no fault of their own can return to the lifestyle they all hold so dear. I urge you to move forward in an accountable and transparent way that ensures the Gulf Coast can recover in the quickest manner possible. I look forward to your prompt reply to my request for the above information.
Sincerely,
Steve Scalise
Member of Congress
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Contact: Stephen Bell
202-226-9113