4 Wm. Mitchell J. L. & P. 5
By: Stephen P. Laitinen, Esq. and Hilary J. Loynes, Esq.[Y]
The cost of health care continues to rise and, along with it, premiums are soaring.[1] Over the past decade, health care premiums have more than doubled, and the average worker’s contributions more than tripled.[2] These increases are partly attributable to the rising number of uninsured Americans. During the chief tort reform movement in 1986, in response to the growing cost of insurance, the Minnesota legislature at least in part abrogated the common law collateral source rule.[3] This legislation provided that a defendant could, in certain instances, take an off-set on his or her damages for amounts paid to the plaintiff related to the injury.[4] In interpreting this legislation amidst the backdrop of the current health care environment, the Minnesota Supreme Court recently concluded that insurance companies do not have to pay an injured party amounts that she received from a “collateral source.”[5] In particular, it held that the amount negotiated by the plaintiff’s health insurance company for the plaintiff’s care was a collateral source, as defined by Minnesota Statute § 548.251, and thus deductible under the statute.[6] Read the rest of this entry »