Page 118 - Cityview_Jan_Feb_2014

Anyone who has ever

argument is who should benefit from received an estimate of

paying premiums: the victims who
paid them or the defendants who have • Psychologically and pragmatically,
beneits from their health
caused injury to others.
juries use medical costs in calculat-
Knoxville attorney Bruce Fox, who ing other damages, such as pain and

represented the goodmans, walked suffering. This other compensation
Cityview through how SB1184 would will typically be some multiple of insurance company knows

work in a case like theirs. “The Col- medical expenses. If the health-
lateral Source Rule,” says Fox, “serves care costs of a victim’s injuries are
that the paid charge is a
many functions, including the social reduced to 15 percent of what they
good of encouraging people to buy otherwise were, then those addition-

health insurance.” As the sidebar al awards will likewise be reduced.
shows, the bill turns premiums taken • Lawyers will be reluctant to repre- fraction of the actual bill.

from responsible victims into savings sent clients unlikely to receive a fair
for the irresponsible defendants who jury verdict. In personal injury cases,
This legislation calls the
injure them.
an attorney works on a contingency
“For example,” Fox continues,
fee, often receiving one third of the

“the goodmans were awarded about amount awarded the plaintiff. If settle-
$600,000, the bulk of it based on medi- ments are universally reduced by this difference between what an

cal expenses. Had the new law been
legislation, then plaintiffs will have
in effect, they would have been lucky little funds to offer for prospective
uninsured victim is billed
to receive 15 percent of that.” Because legal representation.
the goodmans had insurance. Worse, • Two injuries that are exactly the

because of the smaller recovery, they same will be compensated differently
might not have been able to find a law based on the victim’s insurance or and an insured victim is

firm willing to take their case.
lack thereof. If you are on Medicare
From the viewpoint of the new
or have private insurance and it caps
billed “phantom damages.”
law’s writers, the benefits of insurance the amount a hospital can charge
should transfer to the party paying the for treatment, then even though you

bill—in this case, either the person who suffer an identical injury to someone
injured you or their insurance com- who is uninsured, the uninsured

pany. This view ignores the fact that person is likely to receive higher com-
insurance is not free: you bought the pensation. Why would the Legislature

difference in cost via your decision to want to punish someone for doing the
be judicious and pay monthly premi- right thing by buying health insurance

ums, often for years. Why should the and reward someone for not buying
person who injured you or Allstate now health insurance?

keep money that would help reimburse • Health-care providers will also be
Suzanne Keith, executive director of you for your outlay?
affected by this discrepancy. Accord-

the Tennessee Association for Justice, ing to Fox, they will decline insurance
says, “We need to stop referring to this FURTHER COSTS
and bill directly. Nashville attorney

measure as the ‘Phantom Damages Bill.’ Worse for victims, medical costs and former president of the Tennes-
We need to call it the ‘Premium Theft form the foundational basis for jury see Association for Justice John Day

Bill.’” That these plaintiffs have suf- awards in injury litigation. Reduc- concurs: “Some health-care providers
fered the damages is indisputable. The
ing these claims will have secondary are already attempting to ignore their

effects besides this most obvious, contracts with health insurers and bill
intended injustice:
trauma patients at higher rates. The

proposed legislation will aggravate
this problem.”

116 cityviewmag.com january february 2014