BernieHund: The Political Watchdog

The story was picked up everywhere.  Wal-Mart sues disabled female employee on subrogation clause in her company insurance policy.  Once the story hit the national media, perhaps people began to look at their own policies.  The subrogation clause is standard in almost every policy issued, Wal-Mart’s insurance plan or any other.  No one ever said it was a good clause, except the insurance companies.  But, under public and media pressure Wal-Mart dropped the lawsuit yesterday.

In 2000, Debbie Shank was hit by a semi-truck on her way home.  Debbie suffers from a brain injury that has left her with little movement and severe memory loss.  Wal-Mart insurance paid the initial bills.  But, when Debbie’s family sued the trucking company and won $417,000 after attorneys’ fees and expenses, Wal-Mart sued Debbie to collect the money she had won in the lawsuit, saying they were owed the money since they, Wal-Mart, paid the bills initially.

Wal-Mart won the lawsuit, and when the Shanks appealed Wal-Mart won again.  The Shanks then appealed the case to the Supreme Court, which just last month refused to hear the case. 

The $417,000 the Shank family won against the trucking company was placed in trust for Debbie’s continuing care.  Her husband James divorced her so she could collect Medicaid to help offset some of the expenses.  He still visits her daily and cares for her every need.

The week after the Shank family lost their first appeal against Wal-Mart, their eighteen year old son Jeremy was killed in Iraq.  When Debbie was first told of his death she cried.  Now, almost daily she asks to see Jeremy and has to be told daily that he was killed in Iraq.  Everyday the same heartbreaking experience takes place. 

Once the story hit the national media and was kept alive by many of the newspapers and news reporters, more and more of us began to take notice.  And, today under swelling pressure from the citizens of America, and those who shop at Wal-Mart, the giant dropped the case against the Shanks.

Wal-Mart is now saying that the corporation is rethinking its policy, and subrogation will be done with discretion.  The new procedures are now being worked out.