Wal-Mart Pockets Vision Insurance Benefits, Class Action Lawsuit Alleges

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According to a class action lawsuit that was removed to Arkansas federal court on Tuesday, Wal-Mart Stores Inc. overcharges customers at its vision centers by failing to reimburse them for payments covered by their insurance companies.

The Wal-Mart class action lawsuit was initially filed last month in Arkansas state court by plaintiffs Leslie and William Epps. “This case arises from Defendant’s pattern and practice of overcharging its customers at Walmart Vision Centers and Sam’s Club Optical stores by obtaining double payment from the customers and their insurers for the same charges,” the class action lawsuit reads. “In doing so, Defendant wrongfully collects insurance payments that legally inure to the benefit of its customers.”

Both plaintiffs allege they individually purchased glasses from a Wal-Mart Vision Center in Jacksonville, Ark. and submitted their insurance cards at the time of purchase. According to the insurance billing class action lawsuit, Wal-Mart applied their benefits and provided them with a credit. Believing their insurance plans entitled them to greater benefits, Leslie contacted the insurer for an explanation of benefits.

The plaintiffs learned that their insurance companies issued payments larger than the amount credited by Wal-Mart, meaning that Wal-Mart essentially overcharged them and “pocketed” the extra money. In Leslie’s case, Wal-Mart applied her insurance benefits to provide a $25 after-tax discount. She later learned that her insurer paid $80 to Wal-Mart. She claims Wal-Mart overcharged her by $55 by failing to reimburse her for the difference after it received payment from the insurance company.

In William’s case, Wal-Mart applied his insurance benefits to his purchase of glasses and provided him with a $72 after-tax discount. However, the insurance company paid $107 in benefits to Wal-Mart, meaning Wal-Mart overcharged him by $35.

The Wal-Mart class action lawsuit brings allegations of unjust enrichment, conversion and violations of the Arkansas Deceptive Trade Practices Act. “As a routine business practice, [Wal-Mart] receives and retains monies from insurers that should be credited to Plaintiffs and the Class members,” the plaintiffs allege. “Rather than giving Plaintiffs and the Class members full credit for the benefits to which they were entitled under their insurance plans, [Wal-Mart] gives Plaintiffs partial credit, overcharges them, and retains excess benefits that the insurers pay.”

By filing the Wal-Mart class action lawsuit, the plaintiffs seek to represent a Class of all individuals who, since Feb. 5, 2010, were covered by an insurance plan and presented their insurance card for coverage at a Wal-Mart Vision Center or Sam’s Club Optical store, and who were not credited with or reimbursed for the amount covered by their insurance company. They seek the recovery of the insurance money that Wal-Mart allegedly wrongfully withheld from Class Members.

The plaintiffs are represented by Joseph Henry Bates III, James Allen Carney Jr. and John Charles Williams of Carney Bates & Pullam PLLC.

The Wal-Mart Vision Insurance Billing Class Action Lawsuit is Epps, et al. v. Wal-Mart Stores Inc., Case No. 4:15-cv-00138, in the U.S. District Court for the Eastern District of Arkansas.