Collateral source payment reductions.

WORKING DRAFT
2005
STATE OF WYOMING
05LSO-0494

HOUSE BILL
NO.
HB0131

Collateral source payment reductions.

Sponsored by:
Representative(s) Gingery

A BILL

for

AN ACT relating to civil actions; authorizing the admissibility of collateral source payments in a civil action after the verdict for the plaintiff has been entered as specified; requiring a reduction in civil awards if collateral source payments are available as specified; providing a definition; providing for the applicability of the act; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.
W.S. 1
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1
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131 is created to read:

1-1-131.

Collateral source payment reductions.

(a)

In a civil action, whether based on contract or tort, evidence to establish that the plaintiff's expenses for medical care or rehabilitation services, or losses of earnings, earning capacity or other economic losses were paid or are payable, in whole or in part, by a collateral source is admissible to the court in which the action is brought after a verdict for the plaintiff and before a judgment is entered on the verdict. After notice and opportunity for an evidentiary hearing, if the court determines that all or part of the plaintiff's expenses or losses have been paid or are payable by a collateral source and the collateral source has not exercised its right to subrogation within the time limit set forth in subsection (e) of this section, the court shall reduce that portion of the judgment that represents damages paid or payable by the collateral source.

(b)

The court shall decrease the reduction authorized in subsection (a) of this section by an amount equal to the plaintiff's payments over the two (2) year period preceding the personal injury to the collateral source in the form of payroll deductions, insurance premiums or other direct payments by the plaintiff, as determined by the court to be appropriate.

(c)

If the fees for legal services provided to the plaintiff are based on a percentage of the amount of money awarded to the plaintiff, the percentage shall be based on the amount of the adjusted award as provided in subsections (a) and (b) of this section.

(d)

If a jury has been impaneled to try an action under this section, the jury shall not be informed of collateral sources or any future benefits which may be payable to the plaintiff.

(e)

Not later than ten (10) days after a verdict for the plaintiff has been entered, the plaintiff's attorney shall send notice of the claim or verdict by registered mail to all persons known to the attorney who are entitled by contract or law to a lien against the proceeds of the plaintiff's recovery. If a lien holder does not notify the court of the lien holder's right to subrogation within thirty (30) days after receipt of the notice, the lienholder loses the right of subrogation.

(f)

As used in this section, "collateral source" means payments related to an injury or disability suffered by a plaintiff in a civil action, which payments are made to the plaintiff, or on the plaintiff's behalf up to the date of the verdict, pursuant to:

(i)

A federal, state or local income disability or workers' compensation act or other public program providing medical expenses, disability payments or similar benefits;

(ii)

Health, accident, sickness or automobile accident insurance or liability insurance that provides health care benefits or disability income replacement coverage, payments made pursuant to the federal Social Security Act or other pension payments. Life insurance benefits available to the plaintiff, whether purchased by the plaintiff or provided by others, shall not be considered a "collateral source" for purposes of this section;

(iii)

A contract or agreement of a group, organization, partnership or corporation to provide, pay for or reimburse the cost of medical, hospital, dental or other health care services or provide similar benefits; or

(iv)

A contractual or voluntary wage replacement plan provided by an employer or any other system intended to provide for wage replacement during a period of disability. Benefits received from a private disability insurance policy where the premiums are wholly paid by the plaintiff shall not be considered a "collateral source" for purposes of this section.

Section 2.
This act shall not apply to civil actions commenced prior to the effective date of this act.

Section 3.
This act is effective July 1, 2005.

(END)

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HB0131