Comments on: TFB's Stumbles: Week Ending April 4, 2008 http://thefinancebuff.com/2008/04/tfb-stumbles-week-ending-april-4-2008.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 By: TFB http://thefinancebuff.com/2008/04/tfb-stumbles-week-ending-april-4-2008.html/comment-page-1#comment-583 TFB Mon, 07 Apr 2008 19:07:00 +0000 http://blog.thefinancebuff.com/?p=244#comment-583 Ted - re: Wal-Mart. Subrogation has a long history of legal precedents. If there are any questions on whether Wal-Mart's ERISA plan (not Wal-Mart itself) is entitled to recovery, they should be resolved by the courts and judges who hear all the facts, not in the media. In this case, the judges in both the trial court and the appeal court ruled in favor of Wal-Mart's ERISA plan. The subrogation recovery clause is not buried in the fine prints. It is usually in the Summary Plan Description (SPD) given to all employees. When the accident happens, the employee is also notified about subrogation. The WSJ article even said "It also sent Mr. Shank several notices that he was to inform Wal-Mart's health plan before he settled any suit." So before they sued the responsible party, they already knew about this. If they let the plan join their suit and the court agrees, the plan does routinely join those suits. Back to your question about my hypothetical death, if my survivors and their attorney figure it's worthwhile to file a wrongful death suit after taking into consideration any reimbursement liability, they will. Otherwise they will just take the life insurance and let the employer's plan or their insurance company sue the responsible party if they'd like. Ted – re: Wal-Mart. Subrogation has a long history of legal precedents. If there are any questions on whether Wal-Mart's ERISA plan (not Wal-Mart itself) is entitled to recovery, they should be resolved by the courts and judges who hear all the facts, not in the media. In this case, the judges in both the trial court and the appeal court ruled in favor of Wal-Mart's ERISA plan. The subrogation recovery clause is not buried in the fine prints. It is usually in the Summary Plan Description (SPD) given to all employees. When the accident happens, the employee is also notified about subrogation. The WSJ article even said "It also sent Mr. Shank several notices that he was to inform Wal-Mart's health plan before he settled any suit." So before they sued the responsible party, they already knew about this. If they let the plan join their suit and the court agrees, the plan does routinely join those suits. Back to your question about my hypothetical death, if my survivors and their attorney figure it's worthwhile to file a wrongful death suit after taking into consideration any reimbursement liability, they will. Otherwise they will just take the life insurance and let the employer's plan or their insurance company sue the responsible party if they'd like.

]]> By: Ted http://thefinancebuff.com/2008/04/tfb-stumbles-week-ending-april-4-2008.html/comment-page-1#comment-582 Ted Mon, 07 Apr 2008 15:22:00 +0000 http://blog.thefinancebuff.com/?p=244#comment-582 Maybe I'm missing something on the Wal-mart issue, but I disagree with your assessment as "fair". Just because lawyers come up with a fancy name for it doesn't make it right or fair.<br/><br/>The fact is Wal-mart offered health insurance to their employee and they used it. Its just plain sneaky the way big companies backdoor the legality of this by burying some clause in fine print. If Walmart wanted to recover costs they should make their own suit or join the suit with the plaintiff. Lord knows they have an army of lawyers. Its just wrong.<br/><br/>What if you were killed in an accident by a drunk driver, TFB, and your wife sued the person responsible for wrongful death? I'm sure you have a lot of term life insurance. Should the life insurance company be able to collect any winnings for "cost recovery"?<br/><br/>Business looks good for insurance companies if they shift a chunk of their risk to the courts and also use other people's lawyers as an arm of their litigation staff. Maybe I'm missing something on the Wal-mart issue, but I disagree with your assessment as "fair". Just because lawyers come up with a fancy name for it doesn't make it right or fair.

The fact is Wal-mart offered health insurance to their employee and they used it. Its just plain sneaky the way big companies backdoor the legality of this by burying some clause in fine print. If Walmart wanted to recover costs they should make their own suit or join the suit with the plaintiff. Lord knows they have an army of lawyers. Its just wrong.

What if you were killed in an accident by a drunk driver, TFB, and your wife sued the person responsible for wrongful death? I'm sure you have a lot of term life insurance. Should the life insurance company be able to collect any winnings for "cost recovery"?

Business looks good for insurance companies if they shift a chunk of their risk to the courts and also use other people's lawyers as an arm of their litigation staff.

]]> By: Kristin http://thefinancebuff.com/2008/04/tfb-stumbles-week-ending-april-4-2008.html/comment-page-1#comment-579 Kristin Sat, 05 Apr 2008 04:15:00 +0000 http://blog.thefinancebuff.com/?p=244#comment-579 The banking industry is taking a page right out of the Bush Administration's playbook with their fear mongering - if you don't bail us out, the whole economy will crater! The banking industry is taking a page right out of the Bush Administration's playbook with their fear mongering – if you don't bail us out, the whole economy will crater!

]]> By: TFB http://thefinancebuff.com/2008/04/tfb-stumbles-week-ending-april-4-2008.html/comment-page-1#comment-577 TFB Sat, 05 Apr 2008 03:53:00 +0000 http://blog.thefinancebuff.com/?p=244#comment-577 Don't underestimate the American economy and don't get scared into a taxpayer bailout of Wall Street firms. Wall Street firms try to make you believe they are everything. They are not. The real economy runs on the productivity of American people. If some firms fail, new firms will pop up and fill the void. It's capitalism. Ten years of economic recession? Are you kidding? For what? Because somebody can't pay their mortgage? When the prices become realistic, somebody will buy the homes and pay the mortgage. All the slicing and dicing of mortgage backed securities only distribute the losses. They cannot increase the total loss. Read this excellent post on Financial Crookery:<br/><br/><a HREF="http://crookery.blogspot.com/2007/11/subprime-little-perspective-please.html" REL="nofollow">Subprime - a little perspective, please</a> Don't underestimate the American economy and don't get scared into a taxpayer bailout of Wall Street firms. Wall Street firms try to make you believe they are everything. They are not. The real economy runs on the productivity of American people. If some firms fail, new firms will pop up and fill the void. It's capitalism. Ten years of economic recession? Are you kidding? For what? Because somebody can't pay their mortgage? When the prices become realistic, somebody will buy the homes and pay the mortgage. All the slicing and dicing of mortgage backed securities only distribute the losses. They cannot increase the total loss. Read this excellent post on Financial Crookery:

Subprime – a little perspective, please

]]> By: mcfnord http://thefinancebuff.com/2008/04/tfb-stumbles-week-ending-april-4-2008.html/comment-page-1#comment-575 mcfnord Sat, 05 Apr 2008 01:07:00 +0000 http://blog.thefinancebuff.com/?p=244#comment-575 and if the default of investment banks leads to ten years of economic recession, so be it, right? IT'S THAT SIMPLE. (or is it?) and if the default of investment banks leads to ten years of economic recession, so be it, right? IT'S THAT SIMPLE. (or is it?)

]]>