Disability Law

National Settlement Consultants

By Patrick Hindert

National Settlement Consultants (NSC) hosted its second Annual Meeting at the Bedford Springs Resort May 1-3, 2008. The NSC meeting demonstrated why many industry experts view Michael and William Goodman, NSC founders and principals, as structured settlement leaders and visionaries.

Patrick Hindert, S2KM's Managing Director and blog author, was privileged to speak at the NSC meeting and also to attend NSC presentations and social functions. In addition to Michael and William Goodman, the NSC presenters included representatives from ten (10) structured settlement annuity providers as well as several national settlement planning experts.

Highlights from the NSC Annual Meeting:

• Randy Snow - Randy Snow delivered a powerful, humorous, thought-provoking keynote address. Snow's message to NSC and the structured settlement industry:
  • Change is inevitable;
  • Direction is choice;
  • There are no excuses.
• John Heavenrich - NSC honored John Heavenrich as he retires from the structured settlement industry. Heavenrich is one of the founders of the structured settlement industry. He is revered by many peers as one of the most intelligent and honorable persons ever to work in the structured settlement industry. Heavenrich and Frank McKellar of Canada formed one of the earliest, most successful and longest-lasting international structured settlement partnerships. Heavenrich has devoted his professional career to helping disadvantaged persons. With an MBA from Dartmouth and a law degree from Michigan, Heavenrich began his professional career providing legal aid to the poor. More recently, he helped build homes in New Orleans for families displaced by Hurricane Katrina. Heavenrich will be remembered within the structured settlement industry for his international vision, ethical leadership and focus on helping personal injury victims and other disadvantaged persons. Heavenrich is one of the most enlightened and interesting professionals ever to work in the structured settlement industry.
• Annuity providers - Ten structured settlement annuity providers (and one property and casualty company) participated in the NSC Annual Meeting. The annuity provider participants included many current and future structured settlement industry leaders. Both their formal presentations and "after-hour" conversations confirmed that current structured settlement annuity providers are committed to growing the industry. They want to partner with the best and the brightest consultants and lawyers to create innovative financial and insurance solutions for personal injury victims, their families, and their attorneys.
• Industry experts - The author appreciates participating among industry experts who spoke at the NSC Annual Meeting. NSC's program was well-choreographed to focus industry experts and annuity provider representatives on structured settlement industry issues, problems, priorities and solutions. The resulting NSC "conversation" reminded this author of the structured settlement  meeting sponsored by First Colony Life Insurance Company in October 1982 at the Homestead Resort in Virginia. The 1982 First Colony Meeting, which this author attended, provided the political focus and industry cooperation necessary to enact IRC Section 130 and to create the National Structured Settlement Trade Association (NSSTA). Instead of one annuity provider and several consultants, the NSC meeting featured one consultant, ten annuity providers and several issue experts.

Structured Settlement Medicaid Update - a summary of the author's presentation at NSC's Annual Meeting:

• Acknowledgement - Hindert's presentation at NSC's Annual Meeting summarized recent presentations by David Lillesand, a leading social security and special needs attorney, at these conferences:
  • 2008 SSP Annual Meeting
  • 2008 ASNP Annual Meeting
• Context - according to industry leaders, structured settlements represents a "transitional industry".
  
  • See: "2008 NSSTA Annual Meeting"
  • Here is S2KM's 2006 vision for the "Future of Structured Settlements"
• Analysis - When analyzing Medicaid from a structured settlement perspective, several other industry changes (structured settlement tsunamis) need to be considered:
  • Aging industry ownership - including current industry knowledge of and perspective about Medicaid;
  • Shifting purchasing control - defendant (claim management) to plaintiff (settlement planning)
  • Secondary markets - the impact of the secondary annuity markets on Medicaid
  • Competitive products - including proposals for disability savings accounts;
  • Internet transition - check out current online pay-for-click prices for "structured settlement";
  • Other government benefits - proposed structured settlement solutions for Medicaid also need to consider structured settlement rules for Medicare, Section 8 Housing, and Veterans' benefits in addition to Medicaid.
• Strategic Importance
  • What size are the current Medicaid (and Medicare) annuity markets?
  • How many structured settlement annuities were purchased in 2007 to fund special needs trusts?
  • What is the potential market for Medicaid annuities?
  • Within the structured settlement industry, who is analyzing the annuity market linked to government benefits?
  • Why hasn't NSSTA highlighted "government benefits" as a strategic priority for growing the structured settlement industry?
• Current Developments -Hindert's NSC Medicaid presentation summarized:
  • David Lillesand presentations at the
    
    • 2008 SSP Annual Meeting
    • 2008 ASNP Annual Meeting
  • History of Medicaid - from a structured settlement perspective;
  • Special Needs Trust legal authority - highlighting why SSA has declared the 2006 "Bernstein Letter" to be "Inoperative";
  • Special Needs Trust OBRA 93 requirements - highlighting conflicts with existing structured settlement tax rules;
  • Deficit Reduction Act (DRA) annuity rules - a "Pandora's box" for the structured settlement industry;
  • S2KM's proposed solution - how to grow the structured settlement industry by integrating structured settlements and Medicaid;
  • Additional resources - links to leading authorities for structured settlements and Medicaid.

Congratulations to Michael and William Goodman, as well as NSC and NSC's associates and partners, for your outstanding 2008 Annual meeting. Thank you for inviting this author to participate. The structured settlement industry needs enlightened and growth-oriented new leaders like you.

Full post as published by Beyond Structured Settlements on May 04, 2008 (boomark / email).