Is a negotiated rate differential a collateral source benefit under the collateral source rule?

California, United States of America


The following excerpt is from Smith v. Pneumo Abex LLC, B217063, No. BC396072 (Cal. App. 2010):

10. In Howell v. Hamilton Meats & Provisions, Inc. (2010)_Cal.4th_, 106 Cal.Rptr.3d 770, the court granted review regarding the following issues: "(1) Is the 'negotiated rate differential'the difference between the full billed rate for medical care and the actual amount paid as negotiated between a medical provider and an insurera collateral source benefit under the collateral source rule, which allows plaintiff to collect that amount as economic damages, or is the plaintiff limited in economic damages to the amount the medical provider accepts as payment? (2) Did the trial court err in this case when it permitted plaintiff to present the full billed amount of medical charges to the jury but then reduced the jury's award of damages by the negotiated rate differential?"

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