HOUSE 3rd Reading Unamended March 18, 2011 HOUSE Amended 2nd Reading March 17, 2011First Regular Session Sixty-eighth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 11-0228.01 Debbie Haskins HOUSE BILL 11-1106 HOUSE SPONSORSHIP Gardner B., Waller, Barker, DelGrosso, Liston, Nikkel, Sonnenberg, Stephens SENATE SPONSORSHIP Roberts, House Committees Senate Committees Judiciary A BILL FOR AN ACT Concerning the recovery of actual damages in personal injury cases. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The purpose of this bill is to restate and reaffirm the general assembly's intent that the common-law collateral source rule is abrogated and to indicate that a recent decision of the Colorado supreme court (Volunteers of America v. Gardenswartz) interpreting the statute on reduction of damages for payments from collateral sources is contrary to the general assembly's intent to prevent compensatory damage awards for medical expenses from exceeding the amount accepted by the health care service provider for treating the injured party. In an action by a person or a legal representative to recover economic damages, the recoverable damages for reasonable and necessary medical or health care, treatment, or services shall include only those amounts actually paid by or on behalf of the injured person to the providers. The bills states that if payment for medical or health care services has not been made at the time of trial or arbitration, the recoverable amounts shall be limited to the amounts customarily accepted by the providers in satisfaction of their bills. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 13-21-111.6, Colorado Revised Statutes, is amended to read: 13-21-111.6. Civil actions - reduction of damages for payment from collateral source - legislative declaration - reduction of damages for medical or health care costs. (1) The general assembly hereby declares that the purpose of this section is to abrogate the common-law collateral source rule. The general assembly further declares that the Colorado supreme court's interpretation of this section in Volunteers of America v. Gardenswartz, 242 P.3d 1080 (2010), is contrary to the general assembly's intent to prevent compensatory damage awards for medical expenses from exceeding the amount accepted by the health care service provider for treating the injured party for reasonable and necessary health care services. (2) In any action by any person or his or her legal representative to recover damages for a tort resulting in death or injury to person or property, the court, after the finder of fact has returned its verdict stating the amount of damages to be awarded, shall reduce the amount of the verdict by the amount by which such person, his or her estate, or his or her personal representative has been or will be wholly or partially indemnified or compensated for his or her loss by any other person, corporation, insurance company, or fund in relation to the injury, damage, or death sustained; except that the verdict shall not be reduced by the amount by which such person, his or her estate, or his or her personal representative has been or will be wholly or partially indemnified or compensated by a benefit paid as a result of a contract entered into and paid for by or on behalf of such person. The court shall enter judgment on such reduced amount. (3) In any action by any person or any legal representative to recover damages resulting from death or injury to a person, the damages that may be recovered by a claimant for any reasonable and necessary health care services or treatment received shall include only: (a) Amounts actually paid by or on behalf of the injured person to the health care service providers who rendered reasonable and necessary care, treatment, or services; and (b) Unpaid amounts for reasonable and necessary health care services or treatment still due and payable to the health care service provider; and (c) Amounts for reasonable and necessary future health care services or treatment. (4) If payment for reasonable and necessary health care services or treatment has been made by an entity other than a payer of benefits, as defined in section 10-1-135 (2) (c) (I), C.R.S., then the entity that made payment to the health care service provider shall be entitled to recover a reasonable amount for any necessary treatment or services provided to the claimant. SECTION 2. Act subject to petition - effective date - applicability. (1) This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 10, 2011, if adjournment sine die is on May 11, 2011); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part shall not take effect unless approved by the people at the general election to be held in November 2012 and shall take effect on the date of the official declaration of the vote thereon by the governor. (2) The provisions of this act shall apply to causes of action filed on or after the applicable effective date of this act.