H 8053Civil Procedure

Courts and Civil Procedure - Procedure Generally - Evidence

In injury lawsuits, courts must use the full billed medical cost, not the lower amount insurance actually paid.

Held for study

Population
Affected

Introduced Feb 27, 2026Committee House Judiciary

Plain-English Summary

This legislation changes the rules of evidence for civil lawsuits involving personal injury, wrongful death, or malpractice. It mandates that the "fair and reasonable" cost of medical services presented in court must be the amount originally billed by the healthcare provider. Crucially, it prohibits the introduction of evidence showing the lower amount actually paid to and accepted by the provider from insurance companies, government programs like Medicare, or workers' compensation. Consequently, damages awarded may reflect the higher billed rate rather than the actual negotiated payments.

For younger readers

When a person gets hurt and sues for money to pay their medical bills, they have to show the court how much the doctor charged. Sometimes, insurance pays the doctor a lot less than the original price. This new rule says the court must look at the bigger price the doctor asked for, not the smaller price the insurance company actually paid. This means the person who got hurt might get more money from the lawsuit.

Who & Where It Applies

Impacted groups

Plaintiffs in injury lawsuitsInsurance companiesHealthcare providersTrial attorneysDefendants in civil actions

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Amount unknown

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Ensures that victims of negligence are compensated based on the value of the services rendered rather than a discounted rate, preventing the wrongdoer from benefiting from the victim's prudence in carrying insurance.
Strengthens the ability of individuals to hold corporations and negligent parties financially accountable for the full extent of harm caused, potentially acting as a stronger deterrent against negligence.
Protects the financial interests of injured plaintiffs, ensuring that settlement awards are sufficient to cover future medical needs and legal fees without being artificially reduced by insurance negotiations.
Likely to increase insurance premiums for all residents, including automobile and medical malpractice insurance, which disproportionately burdens low-income families and reduces overall affordability.
May result in "windfall" payments where plaintiffs recover costs they never actually incurred, diverting resources that could be used to lower general healthcare costs or expand social safety nets.
Could incentivize higher medical billing rates and aggressive litigation strategies, potentially enriching trial lawyers and private healthcare systems rather than directly benefiting the community or public health.

For Conservatives

Upholds the private market valuation of services set by healthcare providers, rather than deferring to rates dictated by government programs like Medicaid or insurance conglomerates.
Ensures strict accountability by forcing those who cause harm to be responsible for the full face value of the damages, reinforcing the principle of personal responsibility.
Protects the proprietary billing structures of private businesses and medical practices from being undermined or devalued in a court of law based on third-party contracts.
Creates a system of "phantom damages" where defendants are forced to pay for costs that were never actually incurred by anyone, violating the principle that restitution should only cover actual loss.
Increases the cost of doing business and liability insurance for small business owners, potentially stifling economic growth and corporate freedom due to fear of inflated litigation costs.
Directly benefits the trial lawyer lobby—often viewed as political opponents—by inflating settlement values, which incentivizes frivolous lawsuits and weaponizes the judicial system against businesses.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 11 additions

SECTION 1. Chapter 9-19 of the General Laws entitled "Evidence" is hereby amended by adding thereto the following section: 9-19-45. Fair and reasonable charge for medical and healthcare services in all civil actions. In all civil actions now or hereafter pending in any court, agency, arbitration forum, or other tribunal based upon a cause of action for injury or for wrongful death, including causes of action based upon medical, dental, or professional malpractice, the fair and reasonable charge for medical, hospital, therapeutic, and other healthcare services shall be the amount billed by the licensed healthcare provider. The amount paid to the licensed healthcare provider by any health, accident or disability insurer, any state or federal health insurance or disability program, any medical payments or personal injury protection insurance, or any workers' compensation benefits, and the acceptance thereof by the licensed healthcare provider in full satisfaction of the amount billed, shall be inadmissible as evidence of the fair and reasonable charge for such services.

SECTION 2. This act shall take effect upon passage.