I too agree that this is unfair news article slanted to malign
walmart. It is absolutely standard practice that if your medical insurance pays out for injuries/bills due to an accident where there is another party responsible, then your insurance company will recoup from the settlement. Otherwise it's double dipping - you are getting reimbursed twice for the same bills.
I only see two problems here...
1 - her attorneys were crappy. If they knew what the bills were, they should have sued for WAY more than 1 million, or appealed the 1 million settlement. You notice that they only put about ~400K in the trust fund....where do you think the other part went??? In the ATTORNEY'S pocket, or a least the largest chunk of it. Attorneys fees usually range from a minimum of 25% to 35% or more of the settlement. That's why they are willing to take your case on a 'you don't pay unless we win' basis. Knowing she was going to be permantely disabled, and require life long nursing care, they should have gotten a WAY bigger settlement.
2-
Walmart's insurance company should have asked for the money a long time ago instead of waiting.
They are making
walmart look like the bad guys here, and (as much as I hate to defend
walmart) that is not fair. They make a valid point - their insurance company has to do what is in the best interest of ALL their member, not just one person.
This is not a workman's comp case - she was NOT injured on the job. She was injured off hours in a 'private' car accident - had nothing to do with her job at
walmart other than she had health insurance through them as her employer.
I was involved in an accident a few years ago where we had about $1200 in medical bills. My insurance refused to pay the emergency room bills UNTIL the settlement was reached with the responsible party's insurance company. Then I was required to pay the bills out of that settlement. I had notification within a couple weeks of the ER visit with forms to fill out to let them know if my ER visit was the result of an accident, and if so, what was the situation. It VERY CLEARLY said that they would NOT pay if I was entitled to a settlement from someone else's insurance or even my own homeowners/auto policy. In the article the attorney even states that they KNEW they would want the pay back.
I think this is a typical 'attack big business' story that is being put out there to force
Walmart's insurance to write off her treatment as a loss as opposed to having bad PR.
Walmart has a reputation of fighting slip and fall claims, and other insurance fraud. I wouldn't expect them to just let this one go either. They just should have claimed the money a long time ago before it was all spent. Now they will have to write it off either way since these folks don't have the money to pay it.