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Collateral Source Rule Reform

STATE

STATUTORY CITATION

PROVISIONS

Alabama

Ala. Code § 6-5-520

Sets forth the state legislature's intent that plaintiffs be adequately compensated for injuries, but that they not receive compensation more than once for the same medical expenses.

Applicable only to injuries directly related to product liability cases.

Alaska

Alaska Stat. § 9.17.070

Allows introduction of evidence after judgment as well as court and attorney fees have been awarded.

Defendant not permitted to introduce evidence of benefits protected by federal law, deceased life insurance policy benefits, or gratuitous benefits provided to claimant.

Arizona

Ariz. Rev. Stat. § 12-565

Allows introduction of evidence of collateral sources of benefits.

Applicable only to medical malpractice cases.

California

Cal. Civ. Code § 3333.1

Permits the admissibility of evidence of collateral source payments and amounts paid to secure the benefit.

Applicable only to medical malpractice cases.

Colorado

Colo. Rev. Stat. § 13-21-111.6

Directs the court to reduce awards by the same amount the plaintiff has been compensated by other sources for the same loss.

Connecticut

Conn. Gen. Stat. § 52-225a

Allows introduction of evidence after judgment and directs the court to reduce judgment accordingly.

Not applicable to collateral sources for which a right of subrogation exists.

Florida

Fla. Stat. § 768.76

Directs the court to reduce awards by the same amount the plaintiff has been compensated by other sources for the same loss.

Not applicable to collateral sources for which a right of subrogation exists, federal medical services benefits, or workers compensation.

Hawaii

Haw. Rev. Stat. § 663-10

Directs the court, prior to judgment, to determine the validity of lienholder claims for payments made from collateral sources.

Idaho

Idaho Code § 6-1606

A judgment may be entered for the claimant only for damages which exceed amounts received by the claimant from collateral sources as compensation for the personal injury or property damage, whether from private, group or governmental sources, and whether contributory or noncontributory.

Not applicable to benefits paid under federal programs, death benefits paid by life insurance policy benefits, or benefits paid and recoverable under subrogation rights by state law or contract.

Illinois

735 Ill. Comp. Stat. 5/2-1205

Application must be made within 30 days to reduce the judgment. Statute provides a detailed explanation of specific collateral sources that may reduce a judgment. The statute also places limits on certain reductions.

Indiana

Ind. Code § 34-44-1-1 to § 34-44-2-4

Allows the introduction of evidence of collateral sources of payment.

Not applicable to life insurance or other death or insurance policy benefits, or payments made by state or federal government.

Iowa

Iowa Code § 668.14

Allows the introduction of evidence of collateral source payments.

Not applicable to laws governing (professional) peer review committees.

Kansas

Kan. Stat. Ann. § 60-3802

Permits the admissibility of evidence of collateral source payments, where damages exceed $150,000. Provides for awards to be offset when the court assigns comparative fault.

Thompson v. KFB Insurance Co., 850 P.2d 773 (Kan. 1993).

The Kansas Supreme Court has found this statute unconstitutional as violating the equal protection provision of the State Constitution. The Court reasoned there was no rational basis for treating claimants with damages greater than $150,000 different than those whose damages are less than $150,000.

Kentucky

Ky. Rev. Stat. § 411.188

Allows the introduction of evidence of collateral sources of payments.

Not applicable to life insurance policy benefits or known rights.

Maine

24 Me Rev. Stat. § 2906

Allows the introduction of evidence of collateral source payments after verdict, but prior to judgment.

Contained in the Maine Health Security Act - applicable only to personal injury-related professional negligence cases. Not applicable to federal benefit programs or life insurance policy benefits.

Michigan

Mich. Comp. Laws 600.6303

Allows for the introduction of evidence, after verdict and prior to judgment, of collateral source.

Any offset shall not exceed the amount of judgment.

Minnesota

Minn. Stat. § 548.36

Allows for the filing of a motion, after judgment and award, requesting determination of collateral source payments.

Not applicable to life insurance policy, social security, pension, or private disability insurance policy benefits.

Missouri

Mo. Rev. Stat. § 490.715

If prior to trial a defendant or his or her insurer or authorized representative, or any combination of them, pays all or any part of a plaintiff's special damages, the defendant may introduce evidence that some other person other than the plaintiff has paid those amounts.

By submitting evidence of collateral payments, defendant waives right to a credit against the related judgment.

Montana

Mont. Code Ann. § 27-1-308

When total amount of an award exceeds $50,000, recovery must be reduced by any amount paid from collateral sources.

Requires certain deductions from insurance policies before they can be used to reduce awards.

New Jersey

N.J. Stat. Ann. § 2A:15-97

N.J. Stat. Ann. § 39:6A-6 Requires plaintiff to disclose collateral payment sources and for any such amount to be deducted from the award.

Not applicable to workers' compensation or life insurance policy benefits.

Applies collateral source reimbursement provisions to No Fault Auto Insurance.

New Mexico

New York

N.Y. Civ. Prac. L. & R. § 4545

Allows for the introduction of evidence of collateral source payments in certain circumstances.

Not applicable to life insurance, social security benefits, or voluntary charitable contributions.

North Dakota

North Dakota N. D. Cent. Code § 32-03.2-06

Allows defendant to apply to the court for a reduction of economic damages to the extent they are covered by a collateral source.

Not applicable to life insurance or other death or retirement benefits or any insurance or benefit purchased by plaintiff.

Ohio

Ohio Rev. Code Ann. § 2323.41

Allows for the introduction of evidence of collateral source payments in medical malpractice claims.

Not applicable to collateral sources that have mandatory self-effectuating federal right of subrogation, a contractual right of subrogation, or a statutory right of subrogation.

Oklahoma

Okla. Stat. tit. 63, § 1-1708.1D

In medical liability actions, the court shall admit evidence of payments of medical bills made to the injured party unless the payments are subject to subrogation or other right of recovery.

Oregon

Oregon Revised Statutes 18.580:

Allows for the introduction of evidence of collateral source payments after trial, but prior to final judgment.

Not applicable to benefits that the plaintiff is obligated to repay, life insurance or other death benefits, insurance benefits where the plaintiff paid premiums, retirement, disability or pension benefits, or to social security benefits.

Pennsylvania

40 Pa. Cons. Stat. § 1301.602

A claimant in a medical professional liability action is precluded from recovering damages for past medical expenses or past lost earnings incurred to the time of trial to the extent that the loss is covered by a private or public benefit or gratuity that the claimant has received prior to trial.

Not applicable to benefits from (1) life insurance, pension or profit-sharing plans or other deferred compensation plans, including agreements pertaining to the purchase or sale of a business. (2) Social Security benefits. (3) Cash or medical assistance benefits which are subject to repayment to the Department of Public Welfare. (4) Public benefits paid or payable under a program which under Federal statute provides for right of reimbursement which supersedes State law for the amount of benefits paid from a verdict or settlement.

West Virginia

W. Va. Code § 55-7B-9a

Allows collateral source evidence in a medical malpractice action after the jury verdict but before damages have been determined.