Alaska News

With interest

There's no surprise in Exxon Mobil's further attempts to delay of payment to 32,000 Alaskans hurt by the Exxon Valdez oil spill of 1989.

Exxon argues that the Supreme Court limited the total punitive damages payment to $507.5 million in its June 25 decision. No interest on top of that allowed.

Plaintiffs argue that Exxon should have to pay $488 million in interest dating back to 1994, when the trial court entered the original verdict.

Unfortunately, the court left this detail undecided.

As details go, it's big. Interest of $488 million almost doubles the award, and puts a little more bite in a punitive damages award that Exxon can well afford.

As justice goes, the interest is fair. Plaintiffs won in principle -- in some amount, punitive damages will be approved -- but have paid dearly for the victory. Exxon won as a practical matter. The oil company will pay much less than $5 billion awarded in 1994, less than the $2.5 billion ruled after a series of appeals and judicial back-and-forth. It earns in days what it will be obliged to pay, interest or not.

It's not clear when the Supreme Court might rule on the interest question. So now thousands of Alaskans will continue to wait for justice.

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The Supreme Court should settle this question as soon as possible, include the interest and make clear that Exxon should pay. Now.

BOTTOM LINE: What's next, Exxon -- an appeal to the World Court?

Medicare

At last, help for Alaska seniors: a boost in doctor payments

Alaska's congressional delegation achieved a breakthrough for residents 65 and over this week. They helped pass a federal law that includes a 35 percent increase in payments to doctors in Alaska over the standard Medicare rates.

At the very least, this should keep primary care doctors with existing Medicare patients from booting them out. Hopefully, doctors will open their doors to new patients in the government-funded insurance program.

Sens. Ted Stevens and Lisa Murkowski and Rep. Don Young all voted on the right side, to override President Bush's veto and approve the Medicare bill.

Sen. Stevens wrote the provision of it that provides about a 35 percent increase in Medicare reimbursement rates for Alaska doctors, starting Jan. 1. Stevens calls it a permanent fix.

All three are due congratulations.

For the past several years, Alaska's seniors have faced a dire situation, with many unable to find doctors to provide basic care. Medicare reimbursement rates here were so low that doctors said they were losing money.

The Medicare law that passed this week was mainly aimed at stopping a programmed 10.6 percent decrease in Medicare payments to doctors.

It did that. And it gave the extra boost for doctors' fees in Alaska, where unrealistically low reimbursement rates have made our Medicare patients' woes among the worst in the country.

But Medicare comes up for another round of threatened cuts in 18 months. This whole system of attempting to hold down expenses by mandating regular cuts needs to be changed to one that is more realistic and recognizes rising costs.

Dr. Thomas Vasileff, president of the Alaska State Medical Association, said if the bill hadn't passed, "It would have been devastating to the seniors in Alaska and other places in the country too."

He hopes the new law means more Alaska doctors who had quit seeing Medicare patients will reverse their positions, but is not too optimistic about it.

With the 35 percent increase, "It's still significantly less than the usual and customary reimbursement for insurance," Vasileff said.

"We've got a problem. And the problem has been slowed down."

BOTTOM LINE: The health care crisis won't get any worse for Alaska seniors. Now there's breathing room to work on a real solution under a new president.

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