AB 539

This bill affects the admissibility of evidence regarding collateral source

payments in certain civil actions.

Under current law, as a general rule in a personal injury case, evidence may not

be admitted regarding payments made to compensate a person for injury from

persons other than the defendant (collateral source payments). Current law makes

an exception and allows evidence of collateral source payments to be admitted for

medical malpractice cases and cases involving a personal injury sustained as the

result of negligence by a long-term care provider. A separate provision prohibits the

admission of evidence of collateral source payments for the purpose of rebutting the

presumption that billing statements and invoices that are patient health care

records state the reasonable value of the health care services provided to an injured

person in all other matters.

The bill allows, for the purpose of determining the reasonable value of any type

of personal injury claim or of any action seeking payment for uninsured or

underinsured motorist coverage, including the reasonable medical expenses

involved in those claims, the fact finder to consider evidence of collateral source

payments and evidence of the injured person's obligations of subrogation or

reimbursement resulting from those collateral source payments. Under the bill,

evidence of amounts paid or incurred by the claimant in recovering a collateral

source payment is not admissible. The bill allows the admission of evidence of

collateral source payments for the purpose of rebutting the presumption that billing

statements and invoices that are patient health care records state the reasonable

value of the health care services provided to the injured person.