The collateral source rule bars evidence that a plaintiff received insurance, disability, or other benefits, on the rationale that a wrongdoer should not benefit from the plaintiff's foresight.
Many states have modified the rule by statute.
Alternative Names:
Collateral Source|Third-Party Payment Evidence
Why it Matters?
Statutory modification is widespread and varies enormously, with some states permitting evidence of payments, others requiring post-verdict setoff, and others retaining the traditional rule. That variation determines whether billed or paid medical amounts are recoverable, which is frequently the largest single issue in damages. Confirming the applicable rule before developing a billing analysis is necessary rather than optional.
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Frequently asked questions
Why does the rule matter for damages?
How much do states vary?
