CA Supreme Court Tort Case Ruling Helps Insurers

In a victory for insurance companies, the California Supreme Court ruled Thursday that an accident victim who sues the wrongdoer can recover only the discounted sum that the victim’s insurer negotiates with doctors and hospitals that provide care, and not the actual cost of treatment. At stake in the 6-1 decision were payments of hundreds of millions of dollars a year statewide, according to business and consumer groups that took part in the hard-fought case. The case involved a common practice by medical providers of giving substantial discounts to insurance companies in exchange for volume business and prompt and reliable payment (Egelko, 8/19).

This article was originally published by the San Francisco Chronicle and Kaiser Health News.

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