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THE BURBANK GROUP (www.NY50A.com) |
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New York 50A Operating Systems and Terms New York 50 Calculator Case File Requirements Direct Access to Amended New York 50A Calculator Direct Access to Amended New York 50A Calculator 1 Direct Access to Amended New York 50A Calculator Direct Access to Amended New York 50A Calculator 1 Direct Access to Original New York 50A Calculator Direct Access to Original New York 50A Calculator 1 Direct Access to Original New York 50A Calculator |
New York 50A Calculators In essence, New York 50A prescribes the manner and content of personal injury and wrongful death Medical Malpractice valuations. The statute was amended in 2003, and introduced element discount rates indexed to the 10-Year Treasury note, a new methodology for the calculation of element lump sums, application of statutory inflation solely to future Pain and Suffering, and an eight year limit for future Pain and Suffering. The remaining changes in the amendment clarified wrongful death application, or incorporated provisions in other statutes relative to taxes and Collateral Source offsets. Original 50A applies to all cases filed before July 26, 2003, and, while the cases are few and declining, there are still a few yet to be finally resolved. All of the statutes make reference to settlements and rights of the parties to settle an action"...as the parties consider appropriate and in their complete discretion." That has become particularly important as the 10-year Treasury rates have declined from 4.00 to 4.50% to 1.75 to 2.75%. For those elements to which statutory inflation of 4% is applicable, the breakeven discount rate, or that discount rate below which the discounted Award exceeds the Award after lump sum deductions, is 3.625%. For future periods up to 20 years the index rate is the discount rate. Beyond 20, it is the weighted average of the index rate for the first 20 years and two percentage points above the index rate for years beyond twenty. For future periods of 30 Years, an index rate of 2.96% will yield a breakeven discount of 3.625%. As the only guidance provided by the Legislature, this calculation of discount rates has been extended to both original 50A actions and New York 50B General Liability actions. Court decisions seem to have settled upon the daily yield on the date of the verdict as the rate in effect on the date of the verdict . Under original 50A, $250,000 in lump sums is allocated across and deducted from the elements of future damages based on the amount each element's future damages as a percentage of total future damages. Under Amended 50A lump sums are determined, as follows; Pain and Suffering. The lump sum is either the first $500,000 of the future Award or 35% of the future Award, if greater. Other elements of future damages. Lump sums are set at 35% of the discounted value of the elements. The future Award element is reduced by the 35% undiscounted value, and is deducted from the original Award. The summary calculators are easy to use, address the major components of damages and any taxes associated with lost or impaired earnings. They do not include handling of Loss of Consortium or Loss of Services, nor the addition of Collateral Source offsets or any taxes to past damages. Extended capabilities are incorporated in our full valuation. The definitive valuation summary, detailed reconciliation of the valuation together with the detail of past damages, and monthly, annual and discounted annual payment schedules are produced with the full valuation. Interim payment, Judgment and payment worksheets together with associated interest are also generated from the full valuation. The Award generator allocates amounts to past damages, and produces extended lost or impaired earnings. Accessing the Calculator Access the system online and run it.
Calculator Operation The operation of the calculators begins with 'Clear'. Upon pressing 'Clear', The basic information requirements will appear.
'Calculate' produces the valuation including If there are multiple components to any future Award element, a user can total the amounts and calculate the applicable future period by determining component future Award as a percentage of the element future Award, applying that percentage to the future component period, and summing the component periods. The result will closely approximate a more detailed calculation. |