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By Elinor Nelson
Parties to a recent lawsuit challenging the Commonwealth of Massachusetts'
disparate long-term disability coverage (LTD) for its physically
and mentally disabled employees have reached a settlement.
After fully arguing their case before the Supreme Judicial Court,
"both sides were sufficiently risk averse to say, hmmmm…let's go
back to the table," said Stephen Rosenfeld, attorney for plaintiff
Valjeanne Currie. Based on the questions asked by the justices during
legal argument, "both sides thought it was the prudent thing to
do and she (Currie) got what she wanted," said Rosenfeld. Legally,
the settlement has no far-reaching consequences for other state
employees denied long-term disability coverage for mental illness.
The case arose because Currie, a Massachusetts Mental Health Center
employee since 1985, left in June 1999 because of schizophrenia.
Her Group Insurance Commission (GIC) disability benefits were to
last one year. Physically disabled workers, however, could continue
to collect benefits until returning to work or until age 65 (whichever
came first). Mentally disabled workers like Currie could collect
benefits beyond one year only if they were hospitalized. Currie
was not hospitalized.
Currie sued the Commonwealth of Massachusetts and managed to get
her benefits extended through March 2003 via a Superior Court injunction
and settlement with the Hartford Insurance Company, the provider
of the state's disability coverage.
The case remaining against the GIC was briefed and argued before
the Supreme Judicial Court in early October. Had the SJC agreed
with Currie, Massachusetts would have bucked the tide nationwide
and become the first state to prohibit discrimination against the
mentally ill in long-term disability insurance.
According to the settlement document, "Ms. Currie recognizes that
her legal case may be an uphill battle and has therefore decided
to accept the settlement offer proposed by the GIC in early August."
By the settlement terms, "the Commonwealth will make a lump sum
payment to Ms. Currie of $156,775.81, which represents the current
value of Ms. Currie's future benefits." This figure represents a
monthly benefit payment of $1,250, beginning April 2003 and ending
in July 2017 (the month she turns age 65) with a 4% discount rate.
However, the settlement will be paid from the Commonwealth's settlement
and judgment fund, "which is subject to the legislature's appropriation,
which is not within the control of the GIC or any other defendant
in this action. Thus, there is no guarantee that the legislature
will fund this settlement agreement by April 2003."
According to the settlement, "the GIC has already sought to expand
the disability insurance benefit available to state employees who
become disabled due to mental illnesses. Specifically, the Group
Insurance Commission's current long-term disability plan for state
employees provides benefits for mentally disabled employees who
receive outpatient treatment at least four days per week, five hours
per day…Both parties agree that the GIC's practice has been and
will continue to be, to expand long-term disability coverage for
psychiatric conditions, if, in the GIC's judgment, increases in
the LTD plan enrollment make it financially feasible for enrollees
to afford the cost of coverage."
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