This is a horrible story from the front page of today's Wall Street Journal. A woman who was working at Wal-Mart was hit by a truck and severely brain damaged. Now Wal-Mart has sued her for half a million dollars. Why? Here's the full story:
A collision with a semi-trailer truck seven years ago left 52-year-old Deborah Shank permanently brain-damaged and in a wheelchair. Her husband, Jim, and three sons found a small source of solace: a $700,000 accident settlement from the trucking company involved. After legal fees and other expenses, the remaining $417,000 was put in a special trust. It was to be used for Mrs. Shank's care.
Instead, all of it is now slated to go to Mrs. Shank's former employer, Wal-Mart Stores Inc.
Two years ago, the retail giant's health plan sued the Shanks for the $470,000 it had spent on her medical care. A federal judge ruled last year in Wal-Mart's favor, backed by an appeals-court decision in August. Now, her family has to rely on Medicaid and Mrs. Shank's social-security payments to keep up her round-the-clock care.
More after the jump.
Wal-Mart, which is the world's largest retailer and is worth hundreds of billions, is trying to squeeze every last drop out of this working family. You might be wondering how they have the legal authority. According to the Journal:
"The reason is a clause in Wal-Mart's health plan that Mrs. Shank didn't notice when she started stocking shelves at a nearby store eight years ago. Like most company health plans, Wal-Mart's reserves the right to recoup the medical expenses it paid for someone's treatment if the person also collects damages in an injury suit."
This is absolutely deplorable on Wal-Mart's part.
Wal-Mart has a responsibility as the nation's No. 1 employer to provide adequate health care. Not only are they failing to do that in Mrs. Shank's case, but they are regressing.
Wal-Mart came out with a new health plan this week that is supposed to be a big reform. This story shows that Wal-Mart represents everything that is wrong with health care today.