REFORMS BY DATE

2005

MISSOURI

Collateral Source Rule Reform: H.B. 393 (2005); § 490.715. R.S.Mo.  Modifies the collateral source rule to allow the actual amount of paid medical expenses to be introduced into evidence rather than the amount billed.

2004

OHIO

Collateral Source Rule Reform: Am Sub SB 80 (2004); ORC Ann. 2305.131.  Provides that collateral source benefits can be introduced into evidence, except under certain circumstances.

2003

Oklahoma

Medical Liability Reform: Collateral Source Rule Reform: SB 629 (2003).  Permits the admissibility of evidence of collateral source payments, unless the court determines the payment is subject to subrogation or any other right of recovery.

2002

PENNSYLVANIA

Medical Liability Reform: Collateral Source Rule Reform: HB 1802 (2002): 40 Pa. Cons. Stat. Ann. § 1301.602.  Prohibits a patient from suing for damages that were paid by a health insurer.

1996

OHIO

Collateral Source Rule Reform: HB 350 (1996).  Permits the admissibility of evidence of collateral source payments, including workers’ compensation benefits, but only if there is no right of subrogation attached or the plaintiff has not paid a premium for the insurance.  The comprehensive 1996 tort reform law violated the doctrine of separation of powers and one-subject provision of the State Constitution.  State ex rel. Ohio Academy of Trial Lawyers v. Sheward, 715 N.E.2d 1062 (Ohio 1999). 

1993

ARIZONA

Collateral Source Rule Reform: SB 1055 (1993): Ariz. Rev. Stat. § 12-565.  Permits the admissibility of evidence of collateral source payments in all civil liability cases. 

1990

IDAHO

Collateral Source Rule Reform: HB 745 (1990): Idaho Code Ann. § 6-1606.  Permits the admissibility of evidence of collateral source payments.  Provides for awards to be offset to the extent that they include double recoveries from sources other than federal benefits, life insurance, or contractual subrogation rights.

MAINE

Collateral Source Rule Reform: LD 2513 (1990): Me. Rev. Stat. Ann. tit. 24 § 2961.  Provides for awards to be offset by collateral source payments, where the collateral sources have not exercised subrogation rights within 10 days after a verdict for the plaintiff.

1988

KANSAS

Collateral Source Rule Reform: HB 2693 (1988).  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.  The statute allowing evidence of collateral source benefits where claimant demands judgment for damages in excess of $150,000 violated the equal protection provision of the State Constitution.  Thompson v. KFB Insurance Co., 850 P.2d 773 (Kan. 1993).

KENTUCKY

Collateral Source Rule Reform: HB 551 (1988).  Mandates that juries be advised of collateral source payments and subrogation of rights of collateral payers.  The statute allowing the admission of evidence of collateral source payments in personal injury actions violated the separation of powers provision of the State Constitution.  O’Bryan v. Hedgespeth, 892 S.W.2d 571 (Ky. 1995).

1987

ALABAMA

Collateral Source Rule Reform: (1987): Ala. Code § 6-5-545.  Permits the admissibility of evidence of collateral source payments.  The collateral source rule reform in civil tort cases did not violate the right to trial by jury, or the due process, equal protection, access to courts, or right to a remedy provisions of the State Constitution, or the principle of separation of powers.  Marsh v. Green, 782 So. 2d 223 (Ala. 2000) (overruling American Legion Post No. 57 v. Leahey, 681 So. 2d 1337 (Ala. 1996).   

NEW JERSEY

Collateral Source Rule Reform: SB 2703, SB 2708 (1987): N.J. Stat. Ann. § 2A:15-92.  Provides for awards to be offset by collateral source payments other than workers’ compensation and life insurance benefits.

NORTH DAKOTA

Collateral Source Rule Reform: HB 1571 (1987): N.D. Cent. Code § 32-03.2-06.  Provides for awards to be offset by collateral source payments other than life insurance or insurance purchased by the recovering party.

Collateral Source Rule Reform: HB 1 (1987).  Provides for awards to be offset by payments of collateral source benefits that have been paid or are likely to be paid within 60 months of judgment, unless the source of reimbursement has a subrogation right.  The statute providing offset of collateral source benefits received by a plaintiff violated the right to jury trial, due process, equal protection, right to open courts, and right to meaningful recovery provisions of the State Constitution.  Sorrell v. Thevenir, 633 N.E.2d 504 (Ohio 1994).  Samuels v. Coil Bar Corp., 579 N.E.2d 558 (Ohio Cm. Pl. 1991) (same as applied to wrongful death actions).

OREGON

Collateral Source Rule Reform: SB 323 (1987): Or. Rev. Stat. § 18.580 .  Permits a judge to reduce awards for collateral source payments, excluding life insurance and other death benefits, benefits for which plaintiff have paid premiums, retirement benefits, disability benefits, pension plan benefits, and federal social security benefits.

IOWA

Collateral Source Rule Reform: SF 482 (1987).  Permits the admissibility of evidence of collateral source payments.  

MISSOURI

Collateral Source Rule Reform: HB 700 (1987).  Permits the admissibility of evidence of collateral source payments, but provided that a defendant who presents collateral source payments as evidence waives his right to a credit against the judgment for that amount.

MONTANA

Collateral Source Rule Reform: HB 567 (1987).  Permits the admissibility of evidence of collateral source payments, unless the source of reimbursement has a subrogation right under state or federal law.   Requires a court to offset damages over $50,000.

1986

ALASKA

Collateral Source Rule Reform: SB 337 (1986): Alaska Stat. § 9.17.070.  Permits the admissibility of evidence of collateral source payments.  Provides for awards to be offset, less any amount paid by the claimant to secure the benefit, e.g., insurance premiums.

COLORADO

Collateral Source Rule Reform: SB 67 (1986): Colo. Rev. Stat. § 13-21-111.6.  Permits the admissibility of evidence of collateral source payments.  Provides for awards to be offset with broad exclusions.

CONNECTICUT

Collateral Source Rule Reform: HB 6134 (1986): Conn. Gen. Stat. Ann. § 52‑225a.  Permits the admissibility of evidence of collateral source payments.  Provides for awards to be offset by the amount paid by collateral sources less any amount paid by the claimant to secure the benefit.

FLORIDA

Collateral Source Rule Reform: SB 465 (1986): Collateral Source Reform: Fla. Stat. § 768.76. Provides for awards to be offset with broad exclusions.  The collateral source rule reform is  unconstitutional.  Smith v. Department of Insurance, 507 So.2d 1080 (Fla. 1987).      

HAWAII

Collateral Source Rule Reform: SB S1 (special session) (1986): Sunset provision (SB 1529) enacted in 1991.  Provides for the payment of valid liens (arising out of claims for payments made from collateral sources for costs and expenses arising from an injury) from special damages recovered.  Prevents double recoveries by allowing subrogation liens by insurance companies or other sources.  Allows third parties to file a lien and collect the benefits paid to the plaintiff from the plaintiff’s award. The reform does not affect the amount of damages paid by the defendant to the plaintiff.

ILLINOIS

Collateral Source Rule Reform: SB 1200 (1986): 735 Ill. Comp. Stat Ann. § 5/2 –1205.  Provides for awards to be offset for benefits over $25,000, as long as the offset does not reduce the judgment by more than 50%.

INDIANA

Collateral Source Rule Reform: SB 394 (1986): Ind. Code Ann. § 34-44-1-2.   Permits the admissibility of evidence of collateral source payments from sources other than life insurance, other insurance for which the plaintiff or members of the plaintiff’s family have paid directly, or payments made by the United States or any of its agencies or subdivisions.  Provides for awards to be offset at the court’s discretion.  Permits a court to instruct a jury to disregard tax consequences of its verdict.

MICHIGAN

Collateral Source Rule Reform: HB 5154 (1986).  Permits the admissibility of evidence of collateral source payments after the verdict and before judgment is entered.  Permits courts to offset awards, as long as a plaintiff’s damages are not reduced by more than the amount awarded for economic damages.  The statute providing for the admissibility of collateral source payments in personal injury actions did not constitute an unconstitutional taking of property and did not violate the equal protection or right to jury trial provisions of the State Constitution.  Heinz v. Chicago Road Investment Co., 549 N.W.2d 47 (Mich. App. 1996), appeal denied, 567 N.W.2d 250 (Mich. 1997).

MINNESOTA

Collateral Source Rule Reform: SB 2078 (1986): Minn. Stat. Ann. § 548.36.  Permits the admissibility of evidence of collateral source payments only for the court’s review.  Provides for awards to be offset by collateral source payments, unless the source of reimbursement has a subrogation right.  The statutory provision allowing a court to offset collateral source payments was not unconstitutionally vague and did not violate the due process, equal protection, or right to remedy provisions of the State Constitution.  Johnson v. Farmers Union Central Exchange, Inc., 414 N.W.2d 425 (Minn. App. 1987).

NEW YORK

Collateral Source Rule Reform: SB 9351 (1986).  Provides for awards to be offset by collateral source payments. 

1975

CALIFORNIA

Medical Liability Reform: Collateral Source Rule Reform: The Medical Injury Compensation Reform Act (MICRA): (1975): Cal. Civ. Code § 3333.1.  Permits the admissibility of evidence of collateral source payments and amounts paid to secure the benefit.  The collateral source rule reform statute does not violate the equal protection or due process provisions of the State or Federal Constitutions.  Fein v. Permanente Medical Group, 695 P.2d 665 (Cal.), appeal dismissed, 474 U.S. 892 (1985).

Reforms by Statute