Could the collateral source rule here in Missouri? #

To explain it I’m gonna give you a few scenarios. Then you can kind of see how that rule has weakened personal injury car accident claims. And the injured parties right of recovery. Back in the 90s before 2005. The jury in Missouri was allowed to hear the actual amount billed for a medical bill from the hospital.

Let’s assume the medical bill from a hospital was $10.000. The person had health insurance, there were discounts and then the health insurance paid only let’s say $2000. Back in the day, before 2005 the jury in Missouri was allowed to hear that the actual amount of damages was $10.000 dollars for those bills.

No discounts were allowed to be seen by the jury. Basically, the reasoning behind it was, why would we allow the wrongdoer. The person that caused the accident to get a pitfall because the injured party had health insurance at that time. And then, in 2005 that rule changed and with the tort reform. Now all of a sudden the jury was allowed to hear that the actual amount to satisfy the medical bill was let’s say $2000. However, the injured party was allowed to rebut that presumption and still show to the jury. The actual cost of these medical bills was $10.000. And then the jury in Missouri was left to decide what amounts they’re going to consider. And then, back in 2017, that rule changed again.

It rode it further the injured party’s rights. It said that the only number that the jury will be allowed to see is smaller. The number that’s able to satisfy the medical bill, meaning the $2,000 number.

What does that really mean for injured parties in Missouri? #

Well, if you have got health insurance if you are a responsible individual. And you are paying premiums to have health insurance, the at-fault party is now allowed to use that against you. Meaning, they can use the discounted numbers. So, in the scenario that we used previously, an accident happens, the injured party goes to hospital the bill is $10,000. If the party had health insurance that bill will be $2,000.

If the injured party did not have health insurance. So, they’re not paying their premiums, that bill will still be $10,000. As you can see the party without health insurance will be allowed to collect more money than the person that was responsible, and had health insurance at the time of this collision.

So, basically, the collateral source rule is really punishing you if you had health insurance at the time of this collision, and it has eroded plaintiffs claims over the last 15 years.

I hope this kind of explained the collateral source rule.

Bajric & Ramic Law Office
Nedim Ramic – Auto Accident Lawyer – Personal Injury Attorney