What You Must Know About the Collateral Source Rule
By: Rex Bush
Sally is injured in a car accident. Her injuries make her unable to work. She receives substantial discounts from her health care providers and her remaining bills are paid by Medicaide.
At trial the insurance defense attorney hired by the at-fault driver wants to tell the jury about the discounts and Medicaide payments.
Will the trial judge allow him to do so?
No, says the "collateral source rule." At least not if she lives in one of the states that still support the rule.
Collateral Source Rule Explained
The term "collateral" as used here means simply "additional". The at-fault driver or "tort-feasor" as the law calls him, is responsible for making the injured person whole.
This includes making sure her medical bills are paid. Medicaide and the discounts are "additional sources" that have helped make Sally whole by paying her medical bills.
In the American legal system laws can be made by legislatures, administrative agencies, and by courts. The law created by courts is known as common law. The collateral source rule was court created in 1854.
The essence of this rule is summarized in Black's Law Dictionary as follows:
"...if an injured person receives compensation for his injuries from a source wholly independent of the tort-feasor, the payment should not be deducted from the damages [monetary compensation] which he would otherwise collect from the tort-feasor. In other words, a defendant tortfeasor may not benefit from the fact that the plaintiff has received money from other sources as a result of the defendant's tort."
It is an evidentiary rule which means that the injured person has the right to ask the judge to keep evidence of collateral source payments away from the jury.
The most common collateral sources are medical insurance, workers compensation, VA medical benefits, Medicaide and other government programs.
Medical Discounts
While some states have refused to give medical discounts the protection of the collateral source rule, the majority opinion is just the opposite. A majority of states permit a plaintiff to recover the amounts billed for medical care, even when those amounts are discounted by the health care provider pursuant to a contract with the injured person's health insurer.
States That Have Modified Or Eliminated The Rule
The legislatures of twenty eight (28) states have either abolished or modified the collateral source rule.
These states are as follows: Alabama, Alaska, Arizona, California, Colorado, Connecticut, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Michigan, Minnesota, Missouri, Montana, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, West Virginia.
Here is a list, as of the date of this article, of the fourteen states that have completely abolished the rule: Alaska, Colorado, Connecticut, Idaho, Indiana, Iowa, Kansas, Michigan, Minnesota, New York, North Dakota, Ohio, and Oregon.
At the National Association of Mutual Insurance Companies website you can find a list of the states that have modified the rule with a summary of the modification:
http://www.namic.org/reports/tortReform/CollateralSourceRule.asp
Even if you live in a state where the rule has been abolished or limited by the legislature, you should check on the current status as some state supreme courts have overruled the legislature and reinstated the rule.
Conclusion
If yours is one of the twenty two states that still have the collateral source rule in full or one of fourteen that have retained it in part, you need to know about and understand it.
Insurance companies will try to reduce your compensation by amounts which your health insurance has paid. Be alert, don't let them put the evidence in front of the jury.
Disclaimer
This article is for informational purposes only and is not intended to substitute for legal advice. Seek an opinion from an experienced injury attorney in your state of residence.
About the Author
Rex Bush is founder of Bush Law Firm near Salt Lake City, Utah where he handles personal injury cases in Utah and throughout the United States and Canada. For information on personal injury issues visit his website: Utah Injury Attorney.
Chocolate Coffee eLiquid
Ante Merideim™ Chocolate Coffee E-Liquid is a rich blend of Chocolate and Mint flavors. Each puff envelopes the user in rich layers of robust coffee and savory chocolate. If you like your coffee mixed with wonderfully sweet chocolate, you will to enjoy the unique flavor of Ante Merideim™ eLiquid. Ante Merideim™ eLiquid is made in the USA.
Ante Merideim™ eLiquid works in all models of electronic cigarettes. As with all VapeSafe® eLiquids, Ante Merideim™ eLiquid is made in the USA using organic, hypoallergenic, USP and food grade vegetable glycerin.
E-Liquid Legal Disclaimers:
Always keep VapeSafe® eLiquids away from children!
VapeSafe Ante Merideim™ eLiquid is for Adults Only! You must be of legal age in your state to use our products! Absolutely no sales to minors!
Always be sure to allow the Ante Merideim™ eLiquid time to fully soak into the cartridge or cartomizer (cartridge with built in atomizer) before use. To stretch your dollar further, please note that these flavors are more concentrated than normal and can be diluted with small amounts of distilled water without compromising the flavor.
Enticing Chocolate Recipes:
Superb Chocolate Pralines, Ice Cream, and more:
Icing, also called frosting, is a sweet often creamy glaze made of sugar with a liquid such as water or milk, that is often enriched with ingredients such as butter, egg whites, cream cheese, or vanilla and is used to decorate, cover or add flavor to cakes, cookies or other baked goods.
Suggestions for Chocolate
The best flavor to add to chocolate is vanilla; next to that, cinnamon. Beyond these two things one should use great caution, as it is very easy to spoil the fine natural flavor of the bean. Chocolate absorbs odors readily; therefore it should be kept in a pure, sweet atmosphere. As about eleven per cent. of the chocolate bean is starch, chocolate and cocoa are of a much finer flavor if boiled for a few minutes. Long boiling, however, ruins their flavor and texture.
Tags: Law Office, Divorce Attorney, Tax Attorney, DWI Attorney, Lawyers and Attorneys
