Our health care system is broken

And this is just more evidence:

“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.

* * *

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.” [ Accident Victims Face Grab for Legal Winnings ]

Just to be brief: Ms. Shank probably paid for her health insurance while she was employed. When she was injured, her health insurance took care of the emergency care, but she lost that health care because her injuries meant she could no longer work for Wal-Mart.

The judgment she received — in a lawsuit some people should no doubt have said she was too grabby for filing — was intended for her ongoing care. It put in a trust to be used for that explicit purpose. But Wal-Mart sued her to reclaim the cost of her health care, thus depriving her of both the benefit of her insurance while employed and her health care funding now that she’s unemployed. She’s left to survive on the minimal remaining social security net: stingy Medicaid and social security services.

Ultimately that health insurance Ms. Shank had earned her practically nothing. She ended up paying most or all of it out of her pocket. Insurance firms made money on it along the way, lawyers made their money, and now most of her necessary care is being paid for out of her pocket. She’s handicapped and living on government dollars. And many people made money on her trip to the bottom of the economic heap.

Even when you’re covered you’re not covered.

Hat tip: Hilzoy