Florida Supreme Court Rules Defendants May Not Admit Evidence Of Potential Collateral Source Benefits Provided By Social Legislation, Such As Medicare And Medicaid

In John Joerg, Jr., etc., et al. v. State Farm Mutual Automobile Insurance Co., No. SC13-1768 (October 15, 2015), the Florida Supreme Court held that defendants are precluded from introducing evidence regarding collateral source benefits that plaintiffs may receive in the future from social legislation, such as Medicare and Medicaid. The decision receded from the court's prior decision in Florida Physician's Insurance Reciprocal v. Stanley, 452 So. 2d 514 (Fla. 1984), which had allowed limited admission of evidence concerning certain free or low-cost future collateral source benefits. The Joerg decision has significant ramifications because it removes a tool that could be used to diminish the jury award for the plaintiffs' future damages.

Background

Florida law generally holds that evidence of collateral source benefits is not admissible because it will likely confuse the jury. However, Florida Statute §768.76 requires the court to reduce the jury verdict by any collateral source benefits received by the plaintiff. There is no reduction of collateral source benefits for which a subrogation or reimbursement right exists, and the reduction shall be offset to the extent of any amount that has been contributed on behalf of the plaintiff to secure the benefits. The statute specifically notes that benefits received under Medicare and similar federal programs are not considered collateral sources.

In Florida, evidence that a claimant is qualified to receive benefits from social legislation such as Medicare or Medicaid is considered highly prejudicial and is typically not admissible. However, the Stanley decision created a potential narrow exception. In Stanley, the plaintiffs alleged that the defendants' medical negligence resulted in the intellectual disability and cerebral palsy suffered by their son. In that decision, the Court determined the defendants were permitted to introduce evidence of "free or low-cost charitable and governmental programs available in the community" to pay portions of the son's future health care. The Court held that the evidence was admissible because it was relevant to the issue of determining damages for the plaintiffs' future expenses. Since the Stanley decision, the trial courts have wrestled with the issue of whether future benefits that may be provided by Medicare and similar programs are "free or low-cost" benefits that are relevant admissible evidence.

In Joerg, the plaintiff was struck by a car while riding...