Payments by Others: Collateral Sources
It often happens that several companies or insurers bear responsibilities for payment of losses, expenses and bills incurred as a result of an accident. Thus, although you may have sued the “at-fault” person you may have already received payments or benefits for your medical expenses and wage loss from your own auto or health insurer, or from Medical Assistance or Medicare.
Lawyers call these other payments "collateral sources". By law, under some circumstances, if you have already received such payments from collateral sources you may not recover them again from the at-fault person you have sued.
Equally important, you should be aware that, if the case is tried the jury will not be allowed to hear about the collateral source payments. They will not know that a portion of their verdict may be deducted or subtracted to offset the payments previously received.
Some collateral source payments must be reimbursed or repaid out of settlements and verdicts. This is called "subrogation," and it is most common to MA, Medicare, workers' compensation and certain medical insurance plans. If one of these entities has asserted the right of subrogation you may be obligated to repay some benefits out of your settlement or verdict.
Discuss these issues with your attorney, as each case is unique with respect to collateral source payments and claims.