Bad Publicity Embarasses WalMart Into Making An Exception To Policy For Brain-Damaged Woman

The New York Times today has an article "
Injured Woman Wins Wal-Mart Saga
"

about the positive effect extensive blogosphere publicity has had in embarassing WalMart out of taking the money that a brain injured woman had won in court after she had been hit by an inadequately insured truck..

As most of us probably already know, WalMart had a clause in its insurance policy that is incresingly common in corporate healthcare policies, that gave them as the right to "subrogation". This means to sue to seize any lawsuit awards won by insurees to reimburse the corporation for money they had spent for her medical care.

This second award was larger than what she had actually ended up with, leaving her both brain damaged, seriously injured and in need of extremely expensive care, and in debt.

A week after she lost her second court case - the lawsuit with WalMart, her son was killed in Iraq.

This evidently made her case unique, and news worthy.

MSNBC personality Keith Olbermann, outraged at WalMart - took on her case as an example of Walmart's infamous greed. Over the weeks, Olberman repeatedly brought the story up. Finally in April, there was an announcement from WalMart. Olbermann had apparently succeeded in embarassing WalMart into making an exception to their policy in Shank's case.

Deborah Shank, who was a shelf stocker at WalMart who had purchased company insurance - and later was hit by a truck while she was an employee, but was 'insured'. Her coverage included the now infamous clause, which WalMart claims is to protect their assets so that they can be used to help 'current employees'. Obviously, after she suffered severe brain damage when her car was hit by a truck, she could no longer work at WalMart. After fighting a long fight to get the money from the trucking company, winning a fraction of what she needed, and then being sued, by WalMart, fighting WalMart for it and losing, will get to keep the money to pay for at least some of her medical care.

(She still requires 24 hour medical care and will for the rest of her life.)

"The tactic, apparently, is not unusual. Many health plans include a "subrogation" policy that allows the plan to recover costs if a covered worker ever receives damages in a settlement related to the injury."

After they won the case, WalMart issued this statement:


    "This is a very sad case and we understand that people will naturally have an emotional and sympathetic reaction. While the Shank case involves a tragic situation, the reality is that the health plan is required to protect its assets so that it can pay the future claims of other associates and their family members. These plans are funded by associate premiums and company contributions. Any money recovered is returned to the health plan, not to the business. This is done out of fairness to everyone who contributes to and benefits from the plan. The Supreme Court recently declined to hear an appeal of the case, which concludes all litigation. While Wal-Mart's benefit plan was entitled to more than the amount that remained in the Shank trust, the plan only recovered the funds remaining in that trust."

Evidently, now, after Mr. Olbermann's repeatedly holding them up publicly as morally wrong in this situation, and after fighting her family for the money in court for several years, and now winning, WalMart has now decided, that even if they are legally 'within their rights' to recover what is left of her money, since they won the judgement, that the bad publicity in this case is bad for business. They will let Deborah Shank keep the $216,000 that remains to apply towards her future medical expenses and will not seek restitution of the over $250,000 she has already spent.

"Jim Shank, 54, is still recovering from prostate cancer. Married since 1975, he divorced Debbie last year to make her eligible for more Medicaid coverage. "I should be euphoric over this victory," Shank told the Southeast Missourian on Wednesday. "But I came home to eat some lunch, I laid down and covered up with no urgency to get back up. I have got a victory for Debbie, but I still have a lot of problems in my life." When she was injured in 2000 in a collision with a tractor-trailer as she was attempting a U-turn on Missouri 177, she had been working nights at Wal-Mart in Cape Girardeau to make sure she was available during the day to care for her three boys. The $1 million settlement with the trucking company, reduced by attorney's fees and a share for Jim Shank to care for his sons, became a $417,000 trust fund for Debbie Shank's care. The protracted legal battle with Wal-Mart began in 2005, when the retail giant sued to recover the $469,000 its health plan had spent for her medical costs. On Tuesday, a little more than a week after winning the final round when the U.S. Supreme Court denied Jim Shank's last appeal on behalf of his wife, Wal-Mart announced it didn't want the money. Debbie Shank was told of the victory, but whether she will remember it is questionable, Jim Shank said. Jim Shank said the letdown after the Wal-Mart battle came because it wasn't an end, just another chapter. "I am on medication for depression, which helps keep the edge off, but it gets to where I don't want to get out of bed." ....

Also see:

Joy of Wal-Mart decision short-lived: Brain-damaged woman won't have to repay company.
http://www.news-leader.com/apps/pbcs.dll/article?AID=/20080404/NEWS01/804040336/1007

Wal-Mart Rethinks Its Move on Deborah Shank
http://www.usnews.com/blogs/on-health-an d-money/2008/04/03/wal-mart-rethinks-its -move-on-deborah-shank.html

Accident Victims Face Grab for Legal Winnings
http://online.wsj.com/public/article/SB1 19551952474798582.html

Attorney Maurice B. Graham on Equitable Recovery
http://www.lawyersandsettlements.com/articles/10301/maurice-graham.html


Poll
Was WalMart justified in trying to recover the money they had paid in medical bills for Ms. Shank's care from her family after she won a lawsuit even though her FUTURE care was projected to cost $2 million dollars?
Yes, a contract is a contract. WalMart paid her doctors their fair price and they deserved to get reimbursed - As they said, they needed the money for current employees care.
No, trying to take the money that was supposed to go towards her care was wrong even though she no longer worked for WalMart.

Votes: 11
Results : Vote Link : Polls

Display:


said it before, wil say it again (2.00 / 2)

Wal-mart is evil


by zerosumgame on Wed Jun 04, 2008 at 11:36:18 PM EST

Re: Bad Publicity Embarasses WalMart Into Making A (none / 0)

Rec'd - f*** Wal-Mart, they suck


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by X Stryker on Thu Jun 05, 2008 at 12:10:10 AM EST

Olbermann rocked this one (none / 0)


_____________
changiness
by lizardbox on Thu Jun 05, 2008 at 12:24:25 AM EST

Re: Bad Publicity Embarasses WalMart In (none / 0)

I'm confused.  This happened two months ago.  And the article is from then also.

Am I missing something?


by slynch on Thu Jun 05, 2008 at 12:30:22 AM EST

Re: You missed nothing (none / 0)

It's two months old.  Keith shamed them into doing the right thing by making it the highlight of Countdown several times.

The cloud of primary partisanship is lifting, so mydd will have to catch up with the rest of the world.


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by LtWorf on Thu Jun 05, 2008 at 07:23:45 AM EST
[ Parent ]

Important Thing to Keep In Mind Here (none / 0)

The money Wal-Mart was recouping wasn't going to "Wal-Mart" it was going back into their insurance plan... the same place it came out of.  And the money that they are letting the woman keep isn't coming out of their profits, they'll just raise the insurance premiums for the rest of their employees.

Wal-Mart is definitely a greedy company but this case doesn't have anything to do with their profits because this money would have no impact on them either way.


by TooFolkGR on Thu Jun 05, 2008 at 10:29:06 AM EST


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