Those who are injured by others generally have the right to recover the reasonable cost of medical expenses from the person who caused the injury. Determining what the reasonable cost is sounds simple enough, but becomes complicated in an age of medical treatment and financing in which agreements between payors and provider networks. Often, what is billed bears little relation to what is accepted as full payment for medical services.
Typically, billed amounts are much higher than what is actually paid. If a jury determining damages in a court case is able to see only what is billed for medical services rather than what is actually paid it will often award an amount that is far greater than what the medical services actually cost. This payment of “phantom damages” essentially results in a windfall for the injured party.
Determining damages based on the reasonable cost of medical care requires that the actual cost of medical services can be introduced as evidence in any case involving injury. NAMIC supports the elimination of phantom damages through legislation and appellate court decisions.
April 24, 2019 NAMIC has submitted written testimony to the Colorado House Health and Insurance Committee opposing SB 217, Healthcare Provider Liens. The proposed legislation enumerates procedural requirements for a healthcare provider to assert a medical lien for... Read more
July 6, 2017 Gov. Eric Greitens signed SB 31, SB 66, and HB 339 on July 5. These bills, which address phantom medical damages, workers’ compensation, and bad faith traps, were key elements in the proactive agenda of the Missouri tort reformers... Read more
April 27, 2017 The National Association of Mutual Insurance Companies applauded passage of HB 339 on April 26. The bill returns balance to the Missouri's civil litigation process by... Read more
April 24, 2017 NAMIC-supported tort reform bills, SB 191 on Pre-Judgment Interest; SB 181 on Collateral Source/Phantom Damages; and SB 182 on UIM anti-stacking and... Read more
March 8, 2017 NAMIC-supported tort reform bills SB 191 on Pre-Judgment Interest; SB 181 on Collateral Source/Phantom Damages; and... Read more