Federal Register - June 17, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 115 / Thursday, June 17, 2021 / Rules and Regulations
As a result, we estimate total annual processing costs for these 50 claims to be $309,284 to $458,036.
In summary, total estimated annual costs of this interim final rule are $1,710,386 to $3,315,638.
e. Transfers Regardless of the number of claims in which malpractice occurred, the only claims in which damages will be awarded are those which exceed the offsets for any payment to be made.18
Subject to some exceptions such as insurance benefits for which Service
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18 The Congressional Budget Office CBO, when scoring section 731, assumed an additional 50
claims per year would be paid at cost of $600,000
per claim, for a total of $30,000,000 per year or $300,000,000 over 10 years. These estimates did not appear to take into account offsets so the number of paid claims will be less.
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members have paid premiums, benefits received through the DoD and VA
comprehensive compensation system applicable to all injuries and deaths will be applied as an offset in calculating malpractice damages to prevent a double recovery. Because of these offsets, regardless of the number of claims filed, the only claims pertinent for purposes of payments made by the government are those that would exceed applicable offsets.
We estimate 7 claims per year will result in additional payments made to individuals, which is the number of claims anticipated to involve additional payments after offsets are applied. To help explain how we reached this estimate, we prepared the following tables as notional examples to illustrate what benefits are available under the existing comprehensive compensation
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system, both those that are offset and those that are not, and the value of these benefits in Fiscal Year 2020. In addition to the benefits in the above tables, disability retirees and survivors receive healthcare for life through TRICARE. In Fiscal Year 2020, based on information from the Office of the Assistant Secretary of Defense for Health Affairs, the average value of the TRICARE
benefit for an under-65 retiree family of three was $14,600 per year. Benefits provided through the Social Security Administration, such as Social Security disability benefits and Social Security survivor benefits, are also in addition to the above tables. Calculations in the tables were provided by the Office of Military Compensation Policy, within the Office of the Under Secretary of Defense for Personnel and Readiness.
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