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Wal-Mart drops $400,000 reimbursement claim against injured former worker

April 2, 2008 11:33 by ryan

 

"The world's largest retailer said Tuesday in a letter to the family of Deborah Shank it will not seek to collect money the Shanks won in an injury lawsuit against a trucking company for the accident.

Wal-Mart's top executive for human resources, Pat Curran, wrote that Shank's extraordinary situation had made the company re-examine its stance.

Insurance experts say it is increasingly common for health plans to seek reimbursement for the medical expenses paid for someone's treatment if the person also collects damages in an injury suit.

The practice, called "subrogation," has increased since a 2006 Supreme Court ruling that eased it.

Wal-Mart's Curran said the retailer was required by the rules of its plan to seek reimbursement from the Shanks' settlement. But she said the case has made Wal-Mart revise those rules to allow for flexibility in individual cases."

http://www.stltoday.com/stltoday/news/stories.nsf/nation/story/B5256924A68B05F68625741F00103122?OpenDocument


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