In Howell v. Hamilton Meats & Provisions, Inc., the California Supreme Court addressed the application of California’s collateral source rule and the issue of windfall recoveries by plaintiffs involving billed but reduced or unpaid medical bills in personal injury lawsuits.
As noted, the collateral source rule generally prevents defendants from benefiting from a plaintiff’s insurance coverage or other collateral sources of payment. The rule ensures that plaintiffs can recover monetary damages for the full extent of their economic losses caused by a defendant’s wrongdoing, regardless of any private health insurance coverage or payments made on their behalf.
In Howell, the Supreme Court upheld the Nishihama rule that plaintiffs cannot seek reimbursement for medical charges they did not have to pay personally.