Wal-Mart Rethinks Its Move on Deborah Shank

"There's a larger issue that's worth thinking about as well. If a health plan or a company can take your settlement money to repay itself for what it spent on your care, then what exactly are you getting for that premium check that you write every month? You could make the argument that your healthcare coverage isn't really insurance but more like a loan that you may have to pay back."

Let's turn this question on its face. Let's say it's the federal government and the program is SCHIP/Medicaid/Medicare/VA or whatever healthcare you have through the government. Let's say the same thing occurs, only this time it's the government paying out for your care. In an effort to hold down costs for taxpayers, should the government sue the individual to recoup costs that it incurred to pay for the individual's care while he/she was waiting to get a judgement? Let me just throw one extra bone in this equation. I don't know how it is for Medicare and VA, but I do know that under SCHIP and Medicaid, since these are low-income programs, you MUST use up all of your assets before you can even be considered eligible for the program. Should have to use up all of your judgement before you can be found eligible for the program again, or should you be required to keep your judgement and use Medicaid or SCHIP (and as it stands now, this is considered welfare fraud)?

On a side note, what we get through employers is indeed not health insurance, for if it were actual health insurance WE the PEOPLE would be paying for it and not employers, and it would portable to other companies and across state lines. As it stands now, the health coverage we receive is a benefit for us working with the employer, and the actual entity that has the health insurance policy IS the employer. If I were Wal-Mart, I would've stood my ground and would have collected the money. What is morally outrageous is not that Wal-Mart was doing its job and trying to collect the money it needs to reimburse its healthcare plan, but that because Wal-Mart did not collect the money other people who depend upon the healthcare plan that Wal-Mart provides (however meager it is) will have to either weather higher premiums or lose some benefits, or, even worse, Wal-Mart will have to divert some its profits to its healthcare plan to cover the loss and in turn cause prices to rise for its consumers. Nothing is a zero-sum game in life, and it seems many of us have not learned that lesson yet.

Boycott Wal-Mart

Wal-Mart executives are arrogant, greedy, predators. When will Americans start voting with their pocketbooks and boycott this company that continues to profit from and prey upon people of limited income.

the other side

and what of those who earn their income through stocking shelves, or scrubbing floors, or changing car oil at Wal-Mart? shall we boycott them, as well, and put them out of a job? Wal-Mart actually pays its employees decently well for the market they are in. yes, I agree, it could pay more, but wouldn't everybody typically say that, no matter what wage or salary they were being paid at any given company?

as the writer of this article alluded to, Wal-Mart has become the scapegoat for this problem with medical insurance just because it is Wal-Mart. if everybody at wal-mart really were "arrogant, greedy, predators," they wouldn't have dropped this case. yes, they should have dropped it sooner... but others in the same situation may not have dropped it at all.

Walmart

Shocked and surprised Walmart could take the loss - since they can't even afford

to allow ANY overtime for associates!!!

Wal-Mart

I think Elizabeth needs to read the note from Chris of AZ

greedly Wal-mart

Wal-mart didn't help go after the trucking company. So they shouldn't share in her judgement. If Wal-mart had put it's weight behind her when she needed it the most. They would have seen a bigger amount awarded to her and Wal-mart's health plan. In which case could have shown that Wal-mart does care about it's personnel. Now as far as Wal-mart sees it they are off the hook for future care of this women. Is that doing what's right? By taking the stance they have shown just what uncaring and unfeeling company they really are! That uses people up and spits them out when they can't serve Wal-mart any longer. Profits first and Nothing but profits! Wal-mart preaches family and family values to it's employees, but has none itself!

Isn't it strange how Wal-Mart is always targeted yet oil companies whose profits are in th trillions are ignored. It doesn't matter that more people are affected by oil prices than are affected by Wal-Mart's insurance or lack there of. I am sorry for Ms. Shank but in the end Wal-Mart did not pursue their right .

wal mart

i think wal mart shoppers should step back and really look at ,WAL MART, they make that money just opening there doors in the morning... I have since stopped doing any shopping there.. il spend my money in other places, but this stunt that was done by them just goes to show the level of wal marts greed.. all people that shop there should try other stores,,we should let stores like that know that they are not the only shops in town,, there service to customers has also dropped,,, im sorry to hear about ms shanks condition and when i heard of what they were up to i made the descision to go elsewhere with my money and i found there are good deals in other places.....thanks

corporate giant

she should not have paid an attorney, what a bunch of crap

pick on the little guy

you get worse everyday

I am dreading the one they are moving into warrenton, oregon

Everyone support the little hometown business

Walmart Rethinks...Debbie Shank

I think that Maurice Graham, Mrs. Shank's attorney, did one hell of a job!

Re: Boycott Wal-Mart posted by Elizabeth

I apparently am so far out of the loop as to why walmart is so bad. I shop there all the time. Why? becuase they are less than any other option I have in my community! I'm sorry but I don't know how selling products at lower prices than Fred Meyer, Safeway, Albertsons, King Soopers and especially Rays is bad for people of limited income. Are you of limited income and if so, why aren't you shopping at walmart and making your limited dollar stretch a little farther? Believe me, I comparison shop all the time and I can tell you without a doubt that for people of limited incomes, walmart saves us a ton of money! I can actually afford to buy my daughter a new shirt or new jeans once in awhile because I'm not dumb enough to spend too much on disposable items. I'm all for supporting local businesses but I also know how to live with in my means which most of this country does not!

Walmart

Boo for Walmart lawyers but let us not overlook the fact that Shanks lawyers took over 1/2 of the settlement. Fair ??

Wal Mart

As always! There is a special place in hell & Sam may be waiting there for all involved. Money has done strange things to people & keeps getting worse!

God Bless America, & with Gods help a better place.

How much more do you people want?

When is enough...enough. Wal-Mart is one of the biggest charitable corporations on the planet. They employee tens of thousands of regular folks that are trying to feed their families and enjoy their lives. I haven't seen any other company that is a more direct reflection of the quality of it's employees than Wal-Mart. These are salt-of-the-earth people and they give 'til it hurts.

BENTONVILLE, Ark., Feb. 25, 2008 – In honor of National Corporate Philanthropy Day, today Wal-Mart Stores Inc. announces that the company and its Foundation gave $296 million in 2007 – $5.6 million per week – benefiting more than 4,000 U.S. communities. Donations last year reflected a $24 million increase over giving in 2006.

Additionally, Wal-Mart customers and associates again proved to be some of the most generous in the nation, donating $106 million through individual contributions and company-sponsored fundraisers, bringing total 2007 U.S. giving to more than $400 million. For the last two years, Wal-Mart has been recognized by the Chronicle of Philanthropy as the largest corporate cash contributor in America. The company expects that today’s announcement will confirm this position for Wal-Mart for the third consecutive year.

“We are proud to be in a position to make a real difference, not just through donations made by the company, but also by encouraging others to give,” said Margaret McKenna, president of the Wal-Mart Foundation. “Our support last year helped students return to the classroom, local children’s hospitals care for terminally ill youth, disaster relief agencies pick up the pieces following natural disasters, and with many other important charitable causes across the country.”

Since the company was founded in 1962, corporate giving at Wal-Mart has been governed by a philosophy to “give back locally.” The majority of Wal-Mart’s giving occurs at the store- and club-level as each Wal-Mart and Sam’s Club location is encouraged to support its local community.

Examples of 2007 U.S. giving include:

• Education – Supporting education continues to be a focus for Wal-Mart and its foundation as $67 million went to back efforts in these areas. Through company-sponsored scholarship programs, 7,200 students received $7.2 million to continue their post-secondary education. Wal-Mart also recognized more than 4,000 teachers across the U.S. through its 12th annual Teacher of the Year program, providing more than $5 million to schools in every community where the company has a presence. Other funding went to support initiatives focused on improving high school graduation and adolescent literacy rates, as well as other causes.

• Hunger relief – America’s Second Harvest, the nation’s largest charitable hunger-relief organization, continues to be an important partner in Wal-Mart’s efforts to help feed the nation’s hungry. The Wal-Mart Foundation in 2007 gave $5 million to America’s Second Harvest food banks, coupled with more than $35 million in product donations provided by the company. In December, Wal-Mart was the first corporation to respond to a nationwide food shortage in food banks by sending 3 million meals in specially dispatched trucks to food banks servicing every state in the nation.

• Environmental sustainability – Wal-Mart continues to be a leader in environmental sustainability, and last year gave more than $6 million to support sustainability philanthropic causes. Partnerships in these initiatives included the Rocky Mountain Institute and the University of Arkansas’ Applied Sustainability Center, among others. Additionally, $800,000 was awarded to approximately 2,300 elementary schools in 12 states for students’ recycling efforts through the Wal-Mart Foundation’s Kids Recycling Challenge program.

• Health care – Children’s Miracle Network, a national organization that aids children’s hospitals across the country, is one of the most significant recipients of Wal-Mart giving. In 2007 – the 20th year of the partnership between the two organizations – it is estimated that the company and its customers provided more than $39 million in support of local children’s hospitals across North America, including more than $7 million from Wal-Mart Canada. Wal-Mart also supported other health care initiatives through donations to organization such as the Delta Regional Authority, American Cancer Society, American Diabetes Association, American Heart Association and Meharry Medical College.

• Disaster relief – When disaster strikes, Wal-Mart stores and Sam’s Club locations can be counted on to work with disaster relief agencies, supporting their lifesaving work and helping communities to begin the recovery effort. In 2007, Wal-Mart donated $4 million in cash and products to everything from floods and tornadoes to wildfires and winter storms nationwide. Local disaster relief agencies, as well as the American Red Cross and The Salvation Army were key partners in these efforts.

• Military outreach – As a company with more than 3,000 associates on a military leave of absence, supporting America’s servicemen and women is important to Wal-Mart. During the 2007 holiday season, the company partnered with the Fisher House Foundation on a special Christmas program, “Operation: Deck the Walls.” Military families residing in the 36 U.S. Fisher Houses across the U.S. were able to enjoy cash and product donations of $350,000 from Wal-Mart. The Wal-Mart Foundation also provided funding to support veterans returning home from assignments abroad, as well as to organizations seeking to meet the unmet needs of military families.

Last year, Wal-Mart donated $1 million or more to numerous charitable organizations including, but not limited to: United Way of America, National Fish and Wildlife Foundation, Hispanic Scholarship Fund, United Negro College Fund, Muscular Dystrophy Association, Mercy Health Systems, Special Olympics, and Boys & Girls Clubs of America.

Additionally, in 2007 Wal-Mart again demonstrated its support for The Salvation Army’s Red Kettle campaign by once again allowing the volunteer bell-ringers to raise funds in front of stores and clubs. Donations collected in the Red Kettles at Wal-Mart stores and Sam’s Club locations reached an all-time high of $32.5 million, accounting for more than 27 percent of all donations to the Red Kettle campaign.

Gifts of Time

Volunteering is a key component of Wal-Mart’s corporate giving philosophy. Associates are strongly encouraged to become involved in organizations that make a positive difference in the local quality of life, and Wal-Mart gives grants to qualifying organizations in recognition of associate volunteer hours. Last year, associates donated approximately 1 million volunteer hours. As a result, the Wal-Mart Foundation gave more than $6 million in grants to recognize associates’ volunteer efforts.

“We continue to be amazed at our associates’ dedication to give back to their local communities,” said McKenna. “And through our Volunteerism Always Pays program, we are pleased to back-up their volunteer activities with grants from the Wal-Mart Foundation.”

Global Giving

Wal-Mart operations outside of the U.S. increased their community support in 2007. Donations abroad last year were more than $41 million, up from $28 million in 2006. International associates and customers also made a big impact on Wal-Mart’s global communities, giving more than $30 million through company-sponsored fundraisers and events.

Wal-Mart’s global contributions for 2007 totaled more than $470 million, up from $418 million in 2006 – an increase of nearly 9 percent.

Upcoming Support

In the next year, Wal-Mart will be looking to achieve a greater level of impact with its corporate giving efforts. The company will continue to provide support to the communities where it operates, and will enhance these opportunities with new state giving programs coupled with the existing local store- and club-level giving. Philanthropic opportunities in the areas of education, job skills training, sustainability, and health and human services will be a top priority for funding.

Additionally, the Wal-Mart Foundation has given approximately $16 million to support programs that will be rolled out in the first quarter 2008. These programs will provide opportunities for school age children and individuals up to 24-years-old to develop literacy skills, complete or pursue educational degrees and learn critical job skills. Some of the organizations that have received funding to assist with these efforts are: the American Association of Community Colleges, Council of Independent Colleges, Gateway to College National Network, National Foundation of Teaching Entrepreneurship, National Guard Youth Foundation and Scholarship America. Separate announcements with the details of these grants are expected to be made in the coming months.

About Philanthropy at Wal-Mart Stores, Inc.

Wal-Mart Stores, Inc. (NYSE: WMT) and its foundation are proud to support the charitable causes that are important to customers and associates in their own neighborhoods. Through its philanthropic programs and partnerships, the company supports initiatives focused on enhancing opportunities in education, job skills training, sustainability, and health and human services. In 2007, Wal-Mart, Sam’s Club and the Wal-Mart Foundation gave $296 million to communities across the United States.

Another Point to consider

$417,000 out of one million; that means $583,000 for attorney and legal fees. How come no one is getting all rightous about the greed of the lawyers and the cost of doing business with the legal system?

Wal-Mart

It seems that everyone hates Wal-Mart, I dont know why and I cannot see why. Being a business man who watches what is happening in the country as far as the economy is going, how Wal-Mart operates is common business sense. They are able to purchase goods at a lower cost (due to volume) than the small stores and sell them at a reduced rate. I have shopped at both the small mom & pop stores and have found bargans, but at the same time I have shopped at Wal-Mart and have saved money.

What is happening in the article about Debbie Shank, can happen to anyone of us where ever we are working. Our health care system needs to be overhauled, and closer attention needs to be placed by those who work behind the scenes processing medical claims to keep such actions from happening again. What happened with Wal-Mart's health care program can happen with any large company like maybe GE, or Microsoft.

Tommyd from OK made a great statement about the giving to the community that Wal-Mart does, again I have to ask why do people dislike a company who gives back to the community? Is it because of the wages, you have to remember that if you get an increase in wages it is only a temporary gain. Soon you will want more and more. Granted the wages paid out to those who work at Wal-Mart may not seem much, but the people are able to support their families. You will find the same wages at almost any other retailer through out the country.

What people (primarily government officials) are not seeing is that we are in a recession, wages have become stagnet over the past several years in the service industry and everyone from utilities to food stores are having to raise their prices. When will it end? This is especially true with health care, the author of the article said it best that "we are paying a loan for the purpose of having some form of health care".

The employer has to pay twice to three times the amount that comes out of your check for your health care plan, where are they going to get the additional amount from when the health care policies through out the nation are rising at a large percentage? People talk about corporate greed, but as Americans we have to look at the real cost to manufacture goods that are sold on our shelves at any store, and ask our self's what can I do to change things?

I am not trying to back any presidential hopeful, but I really have to ask when are we as a nation going to try to turn things around for the better of all people? I have no solution to the health care industry reform that needs to be made, but maybe someone who is reading this might. So when you visit your local business, whether a store or repair garage, ask yourself this question; what does it cost the business owner to operate their business? Looking at the cost of utilities, the rent/mortgage of the facility, wages, and the employee health care.

CEO tommy

I am glad to see that Walmart finally came to their senses. As for Tommy D of Oklahoma. Are you like an official spokesperson for the company? The only reason Walmart donates so much is because they get a fat tax exemption for doing so. So spare me your rant about philanthropy among Walmart or any other corporation. They give to get in return and because it's good publicity. Period.

research before you rant

Wal Mart is cheap, yes. AT THE PRICE OF PEOPLE OUTSIDE OF AMERICA. Wal Mart is able to sell at low prices because they are paying adults AND CHILDREN 9 cents an hour to manufacture their products. These people are forced to work sometimes 24 hour straight shifts without overtime. These places are what we call sweatshops. And any American company that thrives off of this is inhuman. In the mean time niave people, OR people here who simply dont care, get to save 50 cents. These people working for wal mart and its affiliates in other countries can not afford to lose there job. They really are poverty stricken and cant afford to get fired by fighting for their rights. 99% of WalMart shoppers have no idea what it means to live in these people's shoes. But as long as they save a few sents, who care if a 7 year old boy works a 24 hour shift to make that happen?? Of course Wal Mart gives money to charities in our nation....they get a tax break, and it takes the heat off of what everyone else knows they are promoting elsewhere!!! Go to Target!!!!

There shouldn't have been any money for Wal-mart to ask for

Sorry folks, Mrs Shank made an illegal u-turn in front of an oncoming truck. I'm sorry about her condition, but she caused the accident. The ruslting lawsuit left an innocent truck driver fired and unemployable. I haven't heard anyone worry about his family. They are the real victims here.

sweatshops?

Let's put aside this tragic event that almost took the life of an outstanding woman and an even more outstanding family... because it seems that this has become a hate post against wal-mart, lawyers, and corporate america...

let's remind ourselves that we live in one of the greatest countries in the world and those of us lucky enough to support ourselves and have a computer/a voice should be looking up to wal-mart's standard of giving back. i'm not saying that they couldn't do more(and they could be) but realistically they are giving back more than i'm sure at least half of our posters here. i, myself am a college student and feel fortunate to live in a system where everyone's opinion counts. and i can luckily get an education to hopefully prosper this great world i live in.

but back to why i decided to reply. sweatshops? you're kidding me? let's remind ourselves that some products sold at our local wal-marts(and alot of other retail chains) are not allowed to be made in our country. let's also remind ourselves of the amount of imported products from other countries that allow wal-mart to sell its products at a low cost. i say GOOD FOR THEM to outsource to another country. it allows those less fortunate to make a dollar and feed their family. ultimately a dollar might not be a meal to me and you, but it might feed a family of four for a week in a 3rd world country. should they be paid more? well of course! but in this system, wages are reflected by costs of living(as a previous poster had stated)...if our cost of living were $20 a month for a home and a loaf of bread was 10cents, well i bet i would only make $30 at most a month just to make ends meet. i certainly wouldn't have a car. a bike seems much more cost efficient in that standard of living.

so again i say. GOOD FOR THEM. if a 7 year old boy works a 24 hour shift to make some money to survive, well i dont blame him. i would as well. and you would too if you knew that you would starve if you didn't. and you think TARGET is any better?

AMERICA. let's put our heads on straight and attack the problems that matter. I believe wal-mart made an ethical and possibly moral choice by foregoing the lawsuit to recoup money from this tragic event. In saying that, let's rethink our policies in many matters. why is education so expensive and teachers aren't paid a decent salary? my tuition is knowingly going towards an educator, maintenance costs, and employees to make my institution function. they provide jobs just the same as wal-mart. but 30,000 students. estimated $30,000 a year? well...

I'm done ranting. sweatshops? you've got to be kidding me. where's your bleeding heart for Debbie Shank? you can bet that i'll still shop at wal-mart, wont care about people hating "corporate america", and let as many people know about this debbie shank case. because there's a lot to learn from this.

keep your head on a swivel. be a sponge.

Tax Breaks for the Rich

Where do Walmart's philanthropic 'gifts' come from? From negotiating tax breaks from the government. Tax breaks that being about the inevitable tax increases on the 'regular folks'. Of course, not all that cash comes back. Walmart takes a big chunk. Whenever Walmart opens a store, they pit local communities against each other so that they can get access to land below market price coupled with tax abatements. There is no such thing as a free lunch, yes, and when your real estate taxes rise, look no further than your local big box stores, which have cut themselves a serious piece of the government revenue cake: below-market land, 20 year tax abatements (partial or full), and often, they are allowed to hold on to that sale tax you thought you were paying to the government. Wake up, people. The new business of business is to subvert the market and diversify revenue the revenue stream to include your tax money

Walmart is an outrage playing itself off as beneficial!

Check out this link below about how Walmart pays it's employees wages well below the poverty rate! It all makes me sick!

http://wakeupwalmart.com/facts/

Wal-Mart forces employees to work off-the-clock

Wal-Mart's 2006 Annual Report reported that the company faced 57 wage and hour lawsuits. Major lawsuits have either been won or are working their way through the legal process in states such as California, Indiana, Minnesota, Oregon, Pennsylvania, and Washington. [Wal-Mart Annual Report 2006]

In December 2005, a California court ordered Wal-Mart to pay $172 million in damages for failing to provide meal breaks to nearly 116,000 hourly workers as required under state law. Wal-Mart appealed the case. [The New York Times, December 23, 2005]

A Pennsylvania court, also in December 2005, approved a class-action lawsuit against Wal-Mart Stores Inc. by employees in Pennsylvania who say the company pressured them to work off the clock. The class could grow to include nearly 150,000 current or former employees. [Arkansas Democrat-Gazette, January 12, 2006 ]

In Pennsylvania, the lead plaintiff alleges she worked through breaks and after quitting time — eight to 12 unpaid hours a month, on average — to meet Wal-Mart's work demands. "One of Wal-Mart's undisclosed secrets for its profitability is its creation and implementation of a system that encourages off-the-clock work for its hourly employees," Dolores Hummel, who worked at a Sam's Club in Reading from 1992-2002, charged in her suit. [Arkansas Democrat-Gazette, January 12, 2006 ]

YOUR TAX DOLLARS

Your tax dollars pay for Wal-Mart's greed

The estimated total amount of federal assistance for which Wal-Mart employees were eligible in 2004 was $2.5 billion. [The Hidden Price We All Pay For Wal-Mart, A Report By The Democratic Staff Of The Committee On Education And The Workforce, 2/16/04]

One 200-employee Wal-Mart store may cost federal taxpayers $420,750 per year. This cost comes from the following, on average:

$36,000 a year for free and reduced lunches for just 50 qualifying Wal-Mart families.

$42,000 a year for low-income housing assistance.

$125,000 a year for federal tax credits and deductions for low-income families.

$100,000 a year for the additional expenses for programs for students.

$108,000 a year for the additional federal health care costs of moving into state children's health insurance programs (S-CHIP)

$9,750 a year for the additional costs for low income energy assistance.

[The Hidden Price We All Pay For Wal-Mart, A Report By The Democratic Staff Of The Committee On Education And The Workforce, 2/16/04]

Health care subsidies compared to executive compensation

Excluding his salary of $1.2 million, in 2004 Wal-Mart CEO Lee Scott made around $22 million in bonuses, stock awards, and stock options in 2004.

This $22 million could reimburse taxpayers in 3 states where Wal-Mart topped the list of users of state-sponsored health care programs, covering more than 15,000 Wal-Mart employees and dependents. [Wal-Mart Proxy Statement and News Articles GA, CT, AL].

Your tax dollars subsidize Wal-Mart's growth

The first ever national report on Wal-Mart subsidies documented at least $1 billion in subsidies from state and local governments.

A Wal-Mart official stated that "it is common" for the company to request subsidies "in about one-third of all [retail] projects." This would suggest that over a thousand Wal-Mart stores have been subsidized. ["Shopping For Subsidies: How Wal-Mart Uses Taxpayer Money to Finance Its Never-Ending Growth," Good Job First, May 2004]

Lawyers

The Wal-mart issue aside; I have a problem with the fact that the lawyers/legal firm involved collected over 1/2 the million dollar settlement. It is amazing to me that no one has said anything about what the legal arena charges if you need to stand up and defend your rights!

To Chris of Az

You make some great points, but what do we do? We get angry at Wal-Mart because many of us (low to moderate income folks) feel as though it's unfair to have to pay money from a settlement to an insurance company to which we've been paying.

Yes, employers provide insurance; but we pay. Doesn't it come from our paychecks? Even if we had to pay on our own; we can't? So...

Perhaps blaming Wal-Mart is unfounded. What can we do? We certainly can't expect people making $8.00/hour to full pay for insurance.

I can't believe some of you people....

This lady was in an automobile away from work. Walmart paid for her care that resulted from this accident. This lady sued and won ONE MILLION dollars for said medical bills and whatever else was judged. Walmart should get back the money it put out for her treatment. Sometimes life really sucks for us, but WalMart has EVERY RIGHT to expect this money back.

And you people that are so anti Walmart...where the heck do you think Target and most of the other stores purchase their products....and who do you think makes these products???? Are you so easily swayed in your stupidity????? Do some freaking research before you spew your left wing liberal KAKA about things you have no clue about. Does Target pay top dollar for minimum wage workers? Does Target give away overtime???

Does WalMart do it the best way possible??? They must because they OWN the retail WORLD.

It's a question of fairness

The whole point of this article was to take a step away from Deborah Shank's case and look at the problem more broadly. It doesn't matter whether you like or dislike WalMart -- the issue here is a legal one and I for one agree with an earlier comment (Disabled Veteran Jim of AZ) that said WalMart should not be entitled to any part of her settlement because they did not join her lawsuit or file their own suit seperately. In my opinion, what would seem to be "fair" is that the victim have the first opportunity to sue the offender (the trucking company) and then any other entity that incurred an economic loss (Wal-Mart, her health insurer) should be next in line to attempt to recoup its costs. In this case, the trucking company only had $1 million in liability insurance so if Shank was awarded the entire $1 million that would leave WalMart with either nothing or a long drawn-out lawsuit to go after the trucking company's other assets/profits -- I find this to be fair because health insurance is inherently based on risk, so WalMart knows the risks of offering insurance at all. Of course this money has to come from somewhere, but rather than raise health insurance premiums WalMart could easily find other areas to absorb this loss (profits seems the obvious one). If the victim needs the settlement money in order to cover related bills and post-accident care then they should always be given the first opportunity to sue. And for those who defend WalMart's actions, please realize that if Shank had been left penniless she would inevitably have had to depend on a public program (Medicaid, Medicare) to pay for her care in which case taxpayers will pick up the tab -- which alternative do you prefer, having WalMart (her employer and health insurer) pay for her healthcare, or the American public? Seems like a no-brainer to me.

Response to Chris of AZ

Just to answer your question, the Federal Government already makes people who get settlemenst "use up" the money before they are eligible for medicaid benefits.

There are a few exceptions to this, and in certain cases a Medicaid Trust can be set up which allows the money to be used ONLY for things Medicaid won't pay for and nothing else. In that case you keep your Medicaid benefits. You can't even buy a coke with the money in that case.

Also, if Medicaid pays for treatment like Walmart did, then Medicaid gets paid back. Unlike Walmart, at least the Feds will divide a limited settlement prorata.

And to take Chris's comment one step further, if Walmart had gotten all of their money, that's just one step closer for the Shank's to be completely on welfare benefits.

When a private, profit driven health care insurance company takes away money from a severly injured person, they are simply shifting the financial burden to the tax payers and federal government.

More to the story

The WSJ had an article with more detail about what happened to the $1M:

"For his own losses, Mr. Shank received $200,000, of which $119,000 remained after legal expenses. He says he spent most of it toward a one-story house fitted with ramps and wider doors, which is more accessible than the family's previous three-level home.

Mrs. Shank's own settlement was $700,000. After legal expenses and attorney fees, the remaining $417,477 was placed in a court-created special trust designed specifically for Mrs. Shank's future care. The Shanks' lawyer, Maurice Graham, wrote the Wal-Mart health plan informing them. Mrs. Shank had received no funds directly, he said, and therefore had nothing to pay Wal-Mart back.

Nearly three years went by, Mr. Shank says, before they heard again from Wal-Mart."

Amen Carol of MD

Don't blame Wal Mart they are just doing what they have a legal right to do. like it or not this is done daily by all major corporations and insurers it is a little boutique industry that claims to save employers $1M annually for a typical payroll by going after small and large settlements. Wal Mart is a scapegoat in this reporting.

Blame our legislators who permit this to happen. The laws need to be changed to require the insurer to sue separately and to be second in line to the injured party.

The claims of the parties are entirely different:

The injured parties claim should be for future care and pain and suffering. The injured party worked for/paid for health insurance to cover any such eventualities.

The insurer's claim is " if you had not injured our client we would not have had to pay these extraordinary claims" we want our money back.

Blame the people you elected.....

Sandy of MD

I have read how some people believe the Walmart is the scape goat and a wonderful things about them, as well as the negative. Why are people going after them? The answer is simple. Other companies look at them. If you go after one company and take a stand, the other companies will take a look and know how far they can draw the line. This wasn't totally about Walmart, but about how companies are digging more and more into our pockets and just don't care. Their CEOs, CEF, CEA and so on are getting richer, while people like us, can barely afford to feed our children. This was sending a message to all companies, that enough is enough! We are getting feed up with all the greed.

To the person asking about the oil companies. How long can you go without putting gas in your car or heating up your home. Unfortunately, that is a commodity that we can not do without. If so, I would be one of the first persons in line to not shop there. Walmart on the other hand is something I can go without. I can choose to spend my money else where. To find a company that says, "Hey, in these trouble times, I am standing with you. It won't be about the money for us, but about pulling together." I would be more than glad to spend my money at a company like that.

I agree that the health care insurance laws need to be changed, but if Walmart had shown some compassion for this one case, just maybe I could have over looked others. This lady couldn't return to work. If you would have been able to, than I would be in full support of Walmart's right for recovery.

There was period in time that company's cared about their employees. Now it's all about the bottom dollar.

And how much would you be willing to spend....

1. Only a few of you have commented on the attorney - let's do the math.....

1,000,000 - 417,000 = $583,000 to the attorney for what appears to have been a cut and dry matter. hmmmmm how much is that per hour Ms.Graham Shrum-Hiatt?

2. If every self funded Medical insurance company paid claims that auto and liability insurance were responsible for like Walmart did where do you think your premiums would be.

I am not a fan of Walmart but this is not exclusive to them - all your other store chains do it too - all other businesses do it too - it's a fact.

Shame on WalMart.

Don't give me any BS intellectual justification about WalMart's 'legal' right to sue a brain-damaged person for health-benefits recompense. If you can't tell at a single glance that such an action is low-class down-and-dirty, you are morally and emotionally deficient. Just because you 'can' do something, legally, doesn't mean you should.

And as for WalMart's extensive charitable contributions, were did those come from? The wallets of customers.

Here's an idea: I need 10 million people out there to send me $1 each. In turn I promise to do a WalMart and make a $9 million donation to charity.

And what did Deborah Shanks have before her attorney had at it? A whole lot of nothing. More than nothing, a whole lot of current and future bills.

Way to go Disabled Veteran Jim of AZ, you hit the nail on the head.