Page 18 - Chris Book.docx

insurance company has a contract with the hospital, the bill is reduced to

the contracted rate of $600.00. However, because of the collateral source
rule, the at-fault party still owes you for the full value of the medical bill,

which is $1000.00. Even if you are required to reimburse your health
insurance company the $600.00, the collateral source rule works in your
favor in this instance.

Potential Pitfall: The collateral source rule also works against
a claimant in some instances, cause whether someone is “insured” is not

admissible in court, a jury is not made aware of the presence of
automobile insurance. This places you at a disadvantage, especially if
you have filed a lawsuit against a sympathetic defendant (such as an

elderly woman who does not appear to have assets).

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