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AASC Secures Congressional Request for Government-Funded Dissipation Study
For Release November 10, 2022
Jennifer Wieroniey
Washington, D.C. – After months of effort on Capitol Hill by AASC members, staff, and third-party advocates, members of the House Ways & Means Committee have formally requested a government-funded study assessing the long-term economic and lifestyle impact of premature lump-sum settlement dissipation. The request was made by Congressmen Lloyd Smucker of Pennsylvania and Gregory F. Murphy, M.D of North Carolina. It will land on the desk of the Honorable Gene Dodaro, the Comptroller General of the United States and head of the Government Accountability Office (GAO), who will assess the feasibility of conducting the study and respond accordingly.
In their request, the Congressmen strongly stated the need for authoritative data on the troubling incidence of premature dissipation associated with lump-sum cash settlements, “For low-income Americans and or disabled individuals, settlement income is depended upon to cover essential costs such as mortgage payments, accident-related medical expenses, and other basic living expenses."
"We are deeply concerned by historical data showing legal settlements made in the form of lump sum payments to injured parties and their families quickly dissipate, leaving victims without income when they need it most.”
AASC member George Audi was instrumental in convincing Rep. Lloyd Smucker’s office to spearhead the issue. As a Pennsylvania native and Sage settlement consultant, Audi was able to speak to his experiences with victims from the Congressman’s district who were tragically impacted by their decision to take their settlements in cash rather than through a structured payout.
“I enjoyed meeting with my colleagues and fellow Pennsylvanians on Capitol Hill during AASC’s Advocacy Day last April,” Audi reflects. “It was evident that Congressman Smucker and his staff were deeply sympathetic to the first-hand stories from personal injury victims whose lives had been tragically altered, first by injuries, then by the rapid depletion of their lump sum cash settlements.”
In addition to analyzing the incidence and impact of premature dissipation on injured parties, the request also asks that the study assess the long-term impact on mortgage foreclosures, medical debt, and other personal debt. With the availability of data that paints a complete picture of premature dissipation’s negative impact, injured parties will be able to make a more educated decision and fully assess the risk associated with cash versus annuitization of payments.
You can download the full request at this link.
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