A Montana health clinic has been found liable for submitting hundreds of false asbestos-related disease claims, resulting in over $1 million in damages to the government. A federal jury reached this verdict on Wednesday, concluding that the Center for Asbestos Related Disease (CARD) in Libby, Montana, filed 337 fraudulent claims. These claims enabled patients to access Medicare and other benefits they were not entitled to receive.
The lawsuit, filed in 2019 under the False Claims Act, was brought by BNSF Railway, owned by Warren Buffett. BNSF itself faces numerous lawsuits regarding its role in Libby's asbestos contamination. Montana's Supreme Court previously held BNSF responsible for transporting asbestos-tainted vermiculite through the town from a nearby mine.
CARD, along with its prominent physician, Dr. Brad Black, has been a key player in aiding Libby residents affected by asbestos exposure. The town gained national attention two decades ago when it was designated a Superfund site due to the severe contamination. The jury's decision exposes the clinic to further penalties, with BNSF potentially eligible for a percentage of any amount the government recovers.
CARD's legal team argued that the clinic's diagnoses aligned with the Affordable Care Act's provisions for Libby asbestos victims, denying any wrongdoing. However, BNSF claimed that over 300 claims lacked external verification of asbestos-related illness and that over a thousand individuals received benefits without a proper diagnosis. Court documents indicate Dr. Black and CARD have certified over 3,400 individuals with such diseases.
A general view of Libby, Montana. (AP Photo/Rick Bowmer, File)
Asbestos-related diseases, ranging from breathing difficulties to fatal cancers, qualify Libby residents for government-funded assistance under a 2009 federal health law. Dr. Black, a pediatrician and Lincoln County Health Officer, has maintained that the specific type of asbestos found in Libby poses diagnostic challenges. BNSF's attorney criticized Dr. Black's diagnostic methods, suggesting they lacked sufficient rigor.
Former Montana Senator Max Baucus, who contributed to the Libby provision in the health law, supported the clinic's practices in depositions. However, the judge excluded these statements from the trial. With asbestos-related diseases having a long latency period, symptoms can take decades to manifest, and at least 400 deaths have been attributed to such diseases in the Libby area.
The contamination originated from a W.R. Grace-owned vermiculite mine, affecting Libby for decades, including a BNSF railway yard. Cleanup efforts commenced in 2000 after media reports exposed the widespread health issues, leading to an EPA public health emergency declaration. Over $600 million has been spent on vermiculite removal from properties in Libby and nearby areas. Even minimal asbestos exposure can cause lung problems, according to scientists.
The case remained sealed for two years until the U.S. attorney's office declined involvement. The asbestos-contaminated vermiculite, used in construction and insulation, was also transported nationwide by BNSF. Numerous lawsuits related to the Libby contamination have resulted in substantial settlements and awards for victims, including a $68 million settlement with the state of Montana and a $36.5 million jury award against W.R. Grace’s insurer.
