What Is Collateral Source Rule In Virginia
Key Highlights:
- According to the collateral source rule in Virginia, an individual who caused another person an injury cannot escape liability by simply using the victim’s insurance coverage as a shield for their wrongdoing.
- In Virginia, medical billings can be recovered in full, regardless of what the insurer actually paid.
- The jury will almost certainly never be informed about receiving monetary aid from the insurance company.
- This means that recovering the actual damages is a completely different process from reimbursement of medical bills through liens.
The collateral source rule in Virginia is a notion that protects the rights of victims. At the Tatum & Atkinson Law Firm, our qualified Virginia personal injury lawyers know how to use this theory in order to ensure that victims of personal injury will receive what they deserve without being cheated out of the injury compensation they are entitled to by virtue of this insurance process.
Don’t let the insurance companies minimize your compensation. Contact Tatum & Atkinson Law Firm today at (800) 529-0804 for the maximum compensation you deserve.
What the Collateral Source Rule in Virginia Actually Does
The collateral source rule Virginia operates in two ways. To start with, it protects outside payments from being considered in calculating damages, thereby preventing the at-fault party’s insurance carrier from deducting those amounts from your ultimate payout. Secondly, it usually keeps this information hidden from the jury. According to Virginia’s rules of evidence, jurors are usually not allowed to learn about the insurance coverage. While you, the victim, have done everything, such as paying for the insurance, making plans for the future, or earning benefits at your job, the person who caused your injuries should not be able to enjoy those benefits.
What Counts as a Collateral Source
Any advantage gained from a source other than the responsible party is termed a collateral source (aka outside payments). In the state of Virginia, collateral sources encompass the following types:
- Payments from health insurance.
- Benefits resulting from Medicaid and Medicare.
- Disability payment.
- Wages paid to you in the form of paid sick leave.
- Any other financial assistance received from a third party.
Billed, Paid, and Written Off: The Number That Matters
In Virginia, the legislation has strict enforcement in this case. Typically, a hospital bill consists of three amounts: the bill charged by the provider, a smaller amount that is actually paid by the insurer, and the amount that has been waived by the provider. Virginia lets you claim the full bill, as opposed to just the insurer’s amount. The Virginia Supreme Court has clarified this through the Acuar v. Letourneau case, ruling that an injured person can claim the entire reasonable hospital bill, with no adjustment for the waived amount. On a serious injury, this one ruling can add many thousands to the value of the personal injury claim.
Why the Defense Fights It, and Where Liens Come In
Defendants and their insurance companies frequently challenge this rule, as it prevents them from benefiting from the discounted rates negotiated by your health insurance. They can claim that the ‘actual’ damages should be limited so they can lower the amount approved and paid by your insurer. And in some cases, they may even attempt to present your insurance details to the jury through underhanded means.
Misconception About “Double Recovery”
However, recovering the full billed amount does not necessarily mean that this amount will go directly into your pocket. It is a common misconception that a collateral source rule results in a “double recovery.” Some payment providers (e.g., Medicare, Medicaid, workers’ compensation, and other ERISA plans) have a legal right to be paid back from your settlement or verdict via a lien or subrogation.
Therefore, while the collateral source doctrine states that you will have to recover the entire amount, any offset will determine how much will actually go to you.
Contributory Negligence: A Separate Threat
The rule offers assistance only to winning parties; Virginia’s strict rule of contributory negligence states that if you have even a tiny percentage (even 1%) of fault, then you cannot receive any compensation, regardless of what your medical bills have come to. Because of this, it is crucial for the claims to develop a solid basis in terms of liability and damages, as well as the statute of limitations for filing an action under Va. Code § 8.01-243.
Injured in Virginia? Talk With Tatum & Atkinson
One of the less well-known elements that makes your injury case worth more than the real expenses is the collateral source rule in Virginia. The caveat is that the principle needs to be effectively applied and deals with medical liens that need to be handled responsibly by an experienced lawyer.
Tatum & Atkinson is a law firm that deals with accident cases from its office in Cedar Bluff, Virginia, where lawyer Jon Ward is licensed to practice. The Heavy Hitters law firm calculates the medical damages using full medical bills, keeps the jury away from the issue of insurance, and handles settlement negotiations and liens in such a way that the client retains the largest possible portion of recovery.
To speak to our Virginia injury attorney in a free consultation, call us at (800) 529-0804, or the Cedar Bluff office at (276) 242-8181.
FAQs: What Is the Collateral Source Rule in Virginia?
If my health insurance already paid my medical bills, can I still claim them?
Yes. In Virginia, payments made by your health insurance provider do not lower the rights you have while trying to recover money from the person responsible. You can recover the total amount billed for the medical services used, including any amounts deducted or negotiated by the insurer. Hence, you should make sure to keep the documentation and records of any medical expenses incurred.
Will the jury be told my bills were covered by insurance?
In principle, no. Insurance payments are typically excluded from the courtroom in Virginia, meaning that the jurors do not find out that the loss was insured. This serves to protect against the jurors lowering the award due to a benefit from the insurance.
Will I have to pay back my health insurer or Medicare out of my settlement?
Virginia’s collateral source rule may allow you to recover the full amount billed, but other parties, such as Medicare or workers’ comp plans, may file a lien or make a subrogation claim against your recovery.
Does the collateral source rule apply to lost wages, too?
Yes, according to Va. Code § 8.01-35, lost wages are generally not reduced even if the employee received sick leave, with pay, or any other benefits consistent with the company policy. One may still recover the lost wages from the at-fault party.
What does it cost to hire a Virginia personal injury lawyer?
Zero upfront, as such cases are generally treated on a contingency fee basis, where you only pay after winning. You get a free initial consultation. The law firm will take care of gathering evidence as well as reimbursement and damages claims.
