Evidence of Discounted Bills Admissible to Determine "Reasonable Value" of Medical Services

Karl Truman

Attorney
(866) 735-1102 Ext 315

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Insurance companies and negligent drivers who hurt others were granted a tremendous windfall by the Indiana Supreme Court in the case of Stanley v. Walker.

Often, when an injured person receives medical care and they have health insurance, their health insurance pays their bills. Then, when the case is over, the health insurance carrier receives a reimbursment for what they have paid. Through contractual arrangments with medical providers, the health carrier obtains a negotiated discount from the full price of the bill.

Traditionally, when presenting an injury claim to a court, the injured person was allowed to claim the full amount of the amount of the charges as the damage caused by the negligent party. The belief in many states is that the negligent party should not be rewarded with the benefit of the injured person having purchased health insurance. The proper measure of medical expenses traditionally has been the "reasonable value" of the medical expenses.

However, now the Indiana Supreme Court has ruled that the wrongdoer can place into evidence the amount discounted and paid by health insurance and argue the discounted amount is the "reasonable value" of the medical services in calculating the plaintiff's damages.