For many accident victims, the largest category of damages that arise are medical bills. For those who are injured in an accident but are uninsured, these bills can be catastrophic. Since the true costs of health care coverage can easily total in the tens or hundreds of thousands, many hospitals and medical providers will ultimately discount their bills in order to ensure coverage, or to allow patients to make some sort of payment plan that will allow for payment. At trial in a Tennessee personal injury case, the question then becomes which proof of medical expenses plaintiffs can offer: the original medical bills or discounted versions?
The Tennessee Supreme Court recently considered this question in a case of first impression. In this case, J.D. was seriously injured in an automobile accident and sued the other driver for negligence. As part of her claim, J.D. sought to recover past and future medical expenses, and she provided itemized medical bills from 16 different medical providers. J.D. also had her doctors testify to the reasonableness of the medical bills she incurred.
Prior to trial, the defendants filed a motion to limit the evidence of medical bills that J.D. could provide. They argued that, under recent Tennessee caselaw, J.D. was only allowed to provide evidence of what she and her insurers actually paid in medical expenses, rather than the actual medical amounts billed. According to the defendants, the amounts billed were “unreasonable” evidence of medical expenses when they were not actually what was paid. The trial court held a hearing on this issue and concluded that the defendants were correct. It limited J.D. to presenting evidence of the discounted amounts her insurer paid. J.D. sought an interlocutory appeal, and the Court of Appeals reversed the lower court’s decision, finding that while discounted amounts needed to be used when dealing with hospital liens, they did not apply to personal injury cases. The defendants then appealed this decision.