Collateral Source Reduction Rule with Medpay in Connecticut

In Connecticut, a person may purchase an automobile insurance policy with a medical payments provision (Medpay). Medpay provides payments for medical care up to a specified amount, provided in an insurance policy.

As an example – a claimant/insured is involved in an auto accident. His motor vehicle insurance company pays $5,000 for medical payments. The insured pays a total of $2,200 for auto insurance coverage with $200 of the premium for the Medpay coverage.

A jury awards the following as damages

$5,000 for economic damages (all economic damages are covered and paid for by Medpay).

$15,000 for non-economic damages

Total verdict of $20,000

In this situation: the award will be reduced by the $5,000 in economic damages, the amount of the Medpay, less than $200 paid for the Medpay coverage.

The final judgment becomes $15,200. $15,000 non-economic damages plus $5,000 economic damages less $5,000 collateral source reduction plus $200 cost of Medpay coverage

See Jones v Riley, 263 Conn 93 (2003).

If you have an auto insurance claim in Connecticut, please feel free to contact

Attorney Robert M. Singer

2572 Whitney Avenue, Hamden, CT 06518



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