As you can imagine, my organization has been working on this issue for quite some time, we're very keen to see any cost savings estimates that the department can provide. We were very interested by this figure that was mentioned, which was the $135 million over five years, which, I guess, people narrowed down to about $27 million a year.
However, if you look through the transcript, it would appear that the cost savings estimates are coming from the procedural fairness letters themselves. How is the department estimating its cost savings? It is taking the cost estimate that's given to an applicant in that procedural fairness letter, and it is using that to estimate how much cost is actually saved.
The issue, of course, is that my colleagues here have spoken to the inaccuracies in the procedural fairness letters. For example, for clients who are living with HIV, they may have switched to a generic HIV medication, which is much cheaper than the medication that's set out in the procedural fairness letter, but also, for example, with my H and C clients, we request, and often receive, waivers of medical inadmissibility.
These cost estimates, from what we can tell from the transcripts, do not factor in any revisions to the cost estimates that applicants may submit or any cases where a waiver is granted. Our concern, based on the information that the department has provided to these proceedings, is that there is a significant overestimation of the actual cost savings.
Lastly, those cost savings do not take into account the cost of actually administering the excessive demand program. As my colleague, Mr. Battista pointed out, and as Mr. Waldman pointed out in the previous panel, there is an incredible amount of cost that goes into administering this program. From what we're seeing from this transcript, those costs are not taken into account either.