Outbreak Victims' Share Less Than 50%

By Walter F. Roche Jr.

Recent reports of millions of dollars going to victims of a 2012 fungal meningitis outbreak have left some of them scratching their heads.
In fact, interviews and reviews of settlement records show the victims of the deadly outbreak on average netted less than 50 percent of the amount originally allocated to them.
As some have discovered insurance companies, the Medicare and Medicaid programs along with other parties have come to claim a share of any award.
On top of that the attorneys representing the victims have taken shares ranging from one third to 40 percent.
In one case, records show, some $102,000 has been allocated as an Illinois victim's share but only about $44,000 has actually gone to the victim. Lawyers on the case collected a total of nearly $39,000 while about $12,500 went to reimburse the Medicare and Medicaid programs.
Finally nearly $7,000 went to costs of the litigation.
Other victims cite similar or worse numbers. A Tennessee victim said an award of $292,0373 was whittled down by some 55 percent to $130,152 with attorneys fees taking a one third fee and the health insurance company claiming another.
A Michigan victim said his attorney took one-third of his award as a fee, while his insurance company took another 18.6 percent.
Joan Peay, a victim who survived not one but two bouts of fungal meningitis, said she and other victims were surprised to learn about subrogation, a process that allows insurance carriers to recover some of the costs they incurred paying claims of a covered victim.
"Everyone is also extremely upset," Peay said, to find that the insurance companies get to recover some of their costs.
"We thought we had paid for insurance, not a reimbursement policy. We were the Victims, but ended up with less than 50 percent of the dollar amount awarded," Peay added, noting that she was quite pleased with the work done by her attorney.
Another victim noted that the only awards victims received that weren't reduced by attorney and insurance fees, were issued through a federal victims fund administered by the Massachusetts Attorney General.
Those grants, however, were generally capped at $25,000, although some qualified for $50,000.
Another victim echoed Peay stating that it made her angry that the insurance company got reimbursed from money awarded to her.
"No amount of money would be worth going through that experience and the after effects," Peay said referring to her two bouts of fungal meningitis.
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