Provides relative to medical expenses paid by a collateral source. (8/1/20)
Through SB 266, significant changes would occur regarding how medical expenses are treated within civil liability cases. If a plaintiff has their medical expenses covered by a collateral source, their compensation will be restricted to what the insurance or Medicare paid. For example, even if the billed amount is higher, the plaintiff cannot claim that higher amount in court. This change may potentially lessen the financial burden on defendants in liability cases, as they would not be responsible for inflated medical expenses that are not reflective of what the healthcare provider receives.
Senate Bill 266, introduced by Senator Talbot, aims to clarify the recoverability of medical expenses in civil litigation concerning payments made by collateral sources such as health insurance or Medicare. The proposed law establishes that reductions in medical bills resulting from insurance company write-offs are not to be considered collateral sources and are therefore not recoverable as damages. This directs courts to limit a plaintiff's recovery for medical expenses to the actual amounts paid to healthcare providers rather than the billed amounts.
The sentiment around SB 266 appears to be mixed, with proponents asserting it will create more predictable and equitable outcomes in civil litigation. Supporters argue that limiting recoveries to actual payments emphasizes the real cost of medical care, potentially reducing fraud and abuse within the system. Conversely, there are concerns from opposition groups who argue that this bill undermines the rights of plaintiffs to fully recover for their injuries, as it does not account for the true cost of care that individuals may face, especially those without insurance.
Notably, points of contention include debates over consumer rights versus the insurance industry's influence. Critics of the bill highlight the potential negative implications for injured parties who may face difficulties in obtaining fair compensation for their lawful claims due to a limitation based on insurance payouts. Stakeholders worry that the legislation might result in diminished accountability for responsible parties in lawsuits, as injuries sustained and their associated costs may not be adequately reflected in court due to the adjusted recovery limits set by this bill.