Collateral Source Rule - Colorado

by Guest » Sat Nov 08, 2008 06:07 am
Guest

COLLATERAL SOURCE RULE

My family was involved in a rear-end accident on mothers day May 11th, 2008, we were stopped at a stop light and then rear-ended by a young driver on his cell phone at about 35 mph, he did not brake, we stopped him. My wife injuries were mostly soft tissue neck & back pain and with a rotated hip, it took her about 3 months of PT to heal.
My wife's billed medical bills were about $6700.00, lost wages at about $600.00. The lien on the medical was only $2000.00, My Blue cross Blue shield health insurance from my employer paid all medical expenses, minus co-pays of $360.00 - Farmers adjuster is saying that I requested the Collateral source rule to be applied and is only offering her $8300.00 in total settlement with $2000.00 going toward the lien (I requested 30,000.00 total settlement). I had no idea what that Collateral source rule was until the adjuster mentioned it during negotiations of my wife's settlement, I am hoping to settle this without an attorney, but feel I may the assistance. I have contacted the Colorado Division of Insurance to file a complaint and they are interested and want more information.
My insurance is part of my benefit and wage package from my employer, I have been trying to settle her claim for 3 months and now they bring this Collateral source rule up, The adjuster originally offered $10,400.00, but the final offer came up as $8300.00, after the adjuster's lawyer/supervisor said to use the Collateral Source Rule.
I am still receiving treatment for my injuries, with billed medical at $13,000.00 and lost wages at $23,000.00 so far to date, and I am worried that I will be low-balled by Farmers as well unless I learn more about my rights and Collateral Source rule.
I want to scream Bad Faith dealing by the insurance, but not until I learn more. Who does it benefit to use the Collateral Source rule? The Insurance or me? the adjusted stated, I requested the rule to be applied (but I didn't), I didn't even know what it was until the adjuster mentioned it. I understand the medical lien needs to be paid when settled, but as I stated to the adjuster the pain & suffering is the same weather the billed medical is $50,000.00 and lien is only $3000.00

Please help with any information if possible

Total Comments: 4

Posted: Sat Nov 08, 2008 10:36 am Post Subject:

Hey, the reformed Colorado Collateral Source Rule says the following:

Directs the court to reduce awards by the same amount the plaintiff has been compensated by other sources for the same loss.



Hopr this piece of info might find relevance in your case.

Posted: Sat Nov 08, 2008 07:32 pm Post Subject: CSR

Now, who is really benefitiing from this Collateral source rule?? Am I being compensated by other sources or is Farmers Insurance company, since they are the ones who are responsible for medical bills and will repay the Health Insurance back?? I will not get or recieve any of the billed amount, all we are talking about is pain & suffering, lost wages, mental anguish, stress, inconvience, missing family events, and other losses that were and is still affect by this accident.

Posted: Thu Dec 18, 2008 07:05 pm Post Subject: you win.

There is a new Colorado court of appeals decision that takes your position. you win. i can't post the link but its 07ca844. Tucker v. Volunteers of America. just google it and you will find it.

Posted: Fri Dec 19, 2008 05:10 am Post Subject:

As far I understand, the collateral source rule prohibits the victim form gaining compensation from multiple sources. If your medical bills have been paid by the health insurance and now the at-fault driver's insurance is paying the same benefits, you're required to pay the health insurance back for the medical bills. However, this shouldn't include your compensation for pain and suffering, loss of companionship, wage loss and the other intangible losses.

The objective of the collateral source rule is to restrict the victim from receiving double benefits for the same injuries. Some states, however, allow the recipient to collect from all the sources for the same damages.

Hope the experts will soon be around to clarify the doubts.

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