Understanding Medical Expense Compensation

What Does “Full Value of Medical Expenses” Mean?

“Full value of medical expenses” means the total cost of all the medical care needed because of your injury. This includes everything reasonable and necessary—like hospital stays, doctor visits, surgery, medicine, physical therapy, and more.

For example, imagine you have a $10,000 hospital bill. Your insurance might pay $8,000 of that, leaving you to pay a $2,000 deductible. Even though your insurance covered most of your bill, Georgia law allows you to claim the full $10,000 from the person who caused your injury. In other words, the at-fault party owes you for the entire cost of your medical care—not just what you personally paid.

What is the Collateral Source Doctrine?

The collateral source doctrine might sound complicated, but it’s actually pretty simple. It says the person who caused your injury doesn’t get to pay less just because someone else (like insurance) helped pay your bills. A “collateral source” is any payment you received that didn’t come from the person responsible for your injury.

For example, if your insurance company covers your medical costs, the person who injured you can’t use that as a reason to pay less. The jury will only hear about the total cost of your medical bills, not about payments from your insurance. The idea is to hold the wrongdoer fully responsible. It wouldn’t be fair to let them pay less just because you were responsible enough to have insurance. How Does This Work in Georgia?

In Georgia, courts are very clear about this rule. The person or company who injured you can’t tell the court or jury that someone else, like your health insurance or employer, already paid part of your medical bills. This makes sure the jury sees the full cost of your medical treatment when they decide how much money you should get.

Here are a few common examples of how it works:

Health Insurance: If your health insurance pays some of your bills, the person who caused your injury still has to pay for the full amount. The jury will only see the total bill—not what insurance covered. So even if your insurance covered most of your bills, you can still ask the other party for the full amount.
Medicare or Medicaid: Even if Medicare or Medicaid paid a smaller amount to the hospital or doctor, you can still claim the full market value of the medical treatment. If the hospital charges $5,000 but Medicare only paid $1,000, the person who caused your injury can still be required to pay the full $5,000.
Workers’ Compensation: If you got hurt at work because of someone else, and workers’ compensation covered your medical bills, you can still ask the other party to pay the full value. The person at fault doesn’t get a break just because workers’ compensation covered your treatment.
Other Payments or Charity: Even if a family member helped pay your medical bills or the hospital forgave part of your charges, you can still ask the at-fault party to pay the full cost. Georgia law protects you from the at-fault party paying less just because you received help from other sources.

Real-World Example: How It Protects Injury Victims

Let’s say “Jane” is hurt in a car accident in Georgia. Her medical bills total $30,000, but her health insurance covers most of it, leaving Jane only $5,000 out-of-pocket. Even though insurance paid $25,000, Jane can claim the entire $30,000 against the at-fault driver.

The jury will only hear about the $30,000 total. They will not be told about the insurance payments. If Jane wins her case, she could receive the entire $30,000 in compensation. Her insurance company might later ask for repayment out of that amount—this is called “subrogation.” But that doesn’t affect how much the at-fault party owes her.

Why Is This Fair?

The reason Georgia law uses the collateral source rule is to hold wrongdoers fully accountable. If someone injures you, they shouldn’t pay less just because you had help from insurance or family. You paid for your insurance through premiums or earned assistance in other ways, so the benefit belongs to you—not the person who hurt you.

Conclusion

Georgia’s collateral source rule protects injured people by letting them recover the full amount of their medical bills, no matter who else paid. This rule makes sure the person who caused the harm pays the full cost. It doesn’t matter if your insurance or someone else helped out. Georgia law wants to make sure you aren’t punished for having insurance or support.

Always remember that if you’re injured, you can include every reasonable medical bill in your claim. The law is on your side, designed to help you fully recover the costs you deserve.