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Topic: Wal-Mart Changes Policy - Brain Damaged Woman Can Keep Settlement Money
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triciamarie
rabble-rouser
Babbler # 12970
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posted 02 April 2008 11:12 AM
Much as I enjoy and appreciate any opportunity to sling mud at Wal-Mart, it's my understanding that this kind of undercompensation is sadly, not unusual in catastrophic personal injury claims.You will find subrogation of benefits in the fine print of a lot of insurance policies. It's supposed to prevent plaintiffs from recouping the same medical expenses from two different insurers. And in theory, it would actually probably work out ok, if not for the cost of administering this system through the courts. That $700,000 she won from the trucking company's insurer was worth only $417,000 after deduction of her associated legal fees and "expenses" (disbursements, probably -- other legal fees). Then Wal-Mart was trying to claw back not just the health care benefits paid out under their plan, but also their own legal costs. That's why Wal-Mart's claim initially amounted to more than her actual settlement. http://blog.aflcio.org/2007/11/21/so-much-for-remaking-its-image-wal-mart-sues-brain-damaged-worker/ Who's the winner here? [ 02 April 2008: Message edited by: triciamarie ]
From: gwelf | Registered: Jul 2006
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triciamarie
rabble-rouser
Babbler # 12970
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posted 03 April 2008 01:47 AM
In the AFL-CIO link posted above Wal-Mart claims to have changed its policy on clawing back benefits to the extent of being willing to exercise discretion in certain cases. Discretion doesn't mean that they can't claw back benefits in tragic cases. It means that they may reconsider doing so. Frankly I can't imagine that happening very often though; they're probably going to have to strong-arm their insurer to get that degree of latitude, and it's going to cost them somehow. Maybe they will be paying the claim costs directly. Even the fact that Wal-Mart responded to the shit storm is amazing though. It's given a big boost to the Wal-Mart activists: quote:
Through the Shanks' story, we've shown America that everyday people can change the world's largest retailer. That's an amazing thing. Let's keep pressure on Wal-Mart to change and, hopefully, we'll see better things to come for Wal-Mart's associates.
http://www.wakeupwalmart.com/feature/wmt_drops_case/ [ 03 April 2008: Message edited by: triciamarie ]
From: gwelf | Registered: Jul 2006
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