What Is the Collateral Source Rule in Florida?

Short answer: The collateral source rule decides what happens when someone other than the at-fault party, such as your health insurance, already paid part of your losses. In Florida, Florida Statutes § 768.76 generally requires the court to reduce a jury award by collateral source payments, but not by payments from sources that have a right to be paid back (subrogation or reimbursement), such as many health insurance plans and Medicare. Separately, since 2023, § 768.0427 limits what medical bill evidence a jury can see.

Key takeaways

• Collateral sources include health insurance, disability benefits and certain other payments made because of your injury.
• Under § 768.76, the reduction happens after the verdict, by the judge, not by the jury.
• No reduction is made for sources that have a right of reimbursement or subrogation.
• Payments you or your family bought, such as private life insurance, are treated differently from benefits the at-fault party paid for.
• Since 2023, § 768.0427 focuses medical damages evidence on amounts actually paid or owed.

What is a collateral source?

A collateral source is a payment for your injury that comes from somewhere other than the person or company that caused it. Common examples include health insurance, short-term or long-term disability benefits, and certain employer wage-continuation plans. Section 768.76 also lists government programs, but benefits like Medicare and Medicaid usually come with a right to be paid back, which changes the result.

How Florida’s rule works

Under the traditional common-law rule, a defendant could not use your insurance to pay less. Florida modified that rule by statute. Section 768.76 says the court shall reduce the amount of an award by the total of collateral source payments made for the claimant’s benefit, minus the premiums you paid for that coverage in the past few years.

The key exception: the court does not reduce the award for collateral sources that have a subrogation right or reimbursement right. If your health plan will be paid back out of your settlement or verdict, the defendant does not get a credit for what that plan paid. Otherwise, you would lose the money twice.

An example

Suppose a jury awards $100,000, including $30,000 in medical bills, and your health plan paid $20,000 of those bills. If the plan has a lien and must be reimbursed, the award is generally not reduced for that $20,000, and the plan is repaid from the recovery. If the plan has no reimbursement right, the judge may reduce the award by the $20,000 paid, less premiums you paid. This is an illustration only; real cases depend on the policy language.

How PIP fits in

In car accident cases, Personal Injury Protection is handled by its own statute. Under § 627.736(3), an injured person cannot recover from the at-fault driver damages that PIP already paid or is payable for. In short, PIP benefits are subtracted from the medical and wage claim against the other driver. Read PIP vs health insurance in Florida for how PIP and health insurance work together.

What changed in 2023: § 768.0427

House Bill 837 added § 768.0427, which applies to many injury cases. It limits medical damages evidence to amounts actually paid, plus amounts still needed to satisfy unpaid bills, and sets rules for people treated under a letter of protection. That law does not replace § 768.76, but together they can change how medical damages are presented and calculated, so the way your treatment is paid for matters.

Practical tips

1. Use your health insurance after a crash when appropriate. It usually does not hurt your claim and can lower what is owed.
2. Keep every Explanation of Benefits and billing statement.
3. Expect liens: health plans, Medicare and Medicaid often must be repaid from a settlement.
4. Do not sign a settlement until liens are identified and negotiated.

If an insurer is refusing to pay for these costs, see what to do if an insurance claim is denied.

Frequently asked questions

Does Florida follow the collateral source rule?

Florida modified it. Under Florida Statutes § 768.76, the court generally reduces an award by collateral source payments, except those from sources with a subrogation or reimbursement right.

Can the jury hear that my health insurance paid my bills?

Generally, collateral source payments are handled by the judge after the verdict. Since 2023, § 768.0427 also controls what evidence of medical expenses can be admitted, so the rules depend on the facts and timing of the case.

Do I have to pay back my health insurance from my settlement?

Often, yes. Many health plans, Medicare and Medicaid have a right to be reimbursed from an injury recovery. These liens can often be negotiated.

Is PIP a collateral source in Florida?

PIP is handled separately. Under § 627.736(3), you cannot recover from the at-fault driver the damages PIP paid or is payable for.

Talk with Fiol & Morros

If you are unsure how insurance payments and liens affect your case, we can review your bills and benefits. Call Fiol & Morros Law Group at (813) 223-6773 or use the contact page for a free consultation. The office is at 1515 N Marion St, Tampa, FL 33602.

Sources

• Florida Statutes § 768.76 (collateral sources)
• Florida Statutes § 768.0427 (evidence of medical expenses)
• Florida Statutes § 627.736 (PIP benefits)
• Florida Statutes § 95.11 (limitations periods)

This article is general educational information, not legal advice. Insurance policies and case facts differ, and no outcome is guaranteed. Reading it does not create an attorney-client relationship.