Applying the Collateral Source Rule in Personal Injury Trials: Medical Expenses, Insurance Write-Offs

Description

The collateral source rule provides that if the plaintiff receives benefits from someone other than the defendant tortfeasor, such "collateral" benefits are not revealed to the jury, not introduced into evidence, and not deducted from the total damages awarded to the plaintiff. In recent times, the types and number of "collateral sources" available to plaintiffs have increased: union benefits, veterans' facility treatment, charity-affiliated reduced rates, and more.

The law in every jurisdiction allows plaintiffs to recover the "reasonable value" of the medical services incurred. Defining "reasonable medical expense" has become less clear, more contentious, and the subject of increased litigation and legislation.

Defendants have begun objecting to medical bills identified in an exhibit list or via a motion in limine filed shortly before trial claiming that such medical expenses are neither "reasonable" nor "incurred" by the plaintiff. Defendants argue the bills were not actually "incurred" by the plaintiff because a collateral source paid them (e.g., private health insurance, state Medicaid, Medicare, workers' compensation, governmental assistance programs, etc.).

States have generally adopted one of three basic approaches on medical expenses that can be introduced into evidence and how much can be recovered.

Listen as Martin A. Levinson, Partner at Hawkins Parnell & Young, discusses medical expenses, insurance write-offs, and the collateral source rule in personal injury cases.