Maryland personal injury victims can file personal injury lawsuits and recover damages from the negligent individual or entity that caused their injuries. After a finding of negligence, juries will then determine the amount of damages that the plaintiff should recover. Damages often include medical expenses that the plaintiff incurred as a result of the injury or accident.
Maryland follows the collateral source rule which provides plaintiffs with the right to recover the full value of treatment and other economic damages. This rule allows Maryland plaintiffs to recuperate these losses even if the value is more than their out-of-pocket costs. Juries in these cases are prohibited from reducing a plaintiff’s reward for medical expenses and lost earnings based on reimbursements that they may receive from another source. Other sources include health or car insurance companies or paid leave from the plaintiff’s employer.
The collateral source rule prevents negligent defendants from obtaining a windfall because the victim has other sources of recovery. Moreover, it encourages people to obtain and maintain insurance policies. Collateral source instructions typically come up in the context of motor vehicle accidents. For example, another state’s appeals court recently issued an opinion stemming from an appeal of damages based on the collateral source rule. In that case, the plaintiff suffered severe injuries when she fell in a hotel parking lot. Medicare settled with her medical providers and covered the entirety of her expenses, which ended up being only one-fifth of her original bill. During the trial, the defendant attempted to bar the plaintiff’s introduction of her medical bills. The defendants argued that the plaintiff should only be able to introduce Medicare payments. The appeals court held that the amounts initially billed are relevant evidence subject to the collateral source rule and therefore should be admitted.