Patients' Need for Cash - 2
John Doe John Doe, age 35, was a
resident of San Diego, CA when he sued Life Partners, Inc. (LPI) and National
Medical Funding (the front group behind which LPI solicited viators in
California). His complaint cites a number of charges that stem from selling his policy to
LPI. Not the least was what happened to the offer made to John -- $45,000. John hoped for
$60,000 but since he didn't apply to any other company and since he was financially desperate, instead of starting the
viatical process over again he agreed to accept $45,000.
John was afflicted with AIDS and no longer able to work. He had to wait 6 months for
employer-provided disability insurance payments to kick in. When he was unable to make
payments, his car was repossessed. Now he walked to get groceries, medicines, medical
treatment. Friends and charities helped him with cash, but he needed a car. Finally, his
doctors threatened to withhold medical treatment unless he brought his accounts with them
current. John was destitute, in crisis, and in need of immediate cash.
With the promise of a viatical settlement of $45,000, John arranged to buy a car. The
dealer offered him the use of the car with no down payment, after speaking with National
Medical Funding (NMF) and verifying that John would be paid within 2 or 3 days.
When John went to the office of NMF, he was given a package of documents to sign -- 8
separate documents totaling more than one hundred pages. All the documents were legal in
nature and filled with legal terms and phrases that were unfamiliar to John Doe. That was
when John was told that instead of $45,000 he would be paid $37,500. The reason: LPI would
have to pay premiums until John's death and was subtracting the amount of these premiums.
John said that his insurer paid the premiums. He was told that NMF would look into this
and increase the payment if John was correct.
Two weeks passed. John still did not receive any viatical settlement. Now the car dealer
was threatening to repossess the car.
Finally, John received $37,500.
The story doesn't end here but the main point is clear:
People who are desperately ill and financially desperate need viatical settlements
as much as they need medical care--and often need viatical settlements in
order to get medical care.
