S 3191Civil Procedure

Courts and Civil Procedure - Procedure Generally - Evidence

In injury lawsuits, medical damages are based on the doctor's full original bill, not the discounted insurance payment.

Held for study

Population
Affected

Introduced Apr 3, 2026Committee Senate Judiciary

Plain-English Summary

This bill changes the rules for evidence in civil lawsuits involving personal injury or wrongful death. It requires courts to consider the full amount originally billed by a doctor or hospital as the "fair and reasonable" cost of medical care, rather than the discounted amount actually paid by an insurance company or government program. The amount the insurance company paid to settle the bill cannot be used as evidence in court to argue that the medical costs were lower than the original bill.

For younger readers

When people get hurt and sue the person who hurt them, they ask for money to pay their doctor bills. Sometimes, insurance pays the doctor a lower, secret price instead of the full bill. This new rule says that in court, the hurt person is allowed to ask for the amount on the full, original doctor bill. The person they are suing is not allowed to show the court the lower price the insurance actually paid.

Who & Where It Applies

Impacted groups

Plaintiffs in civil suitsDefendants in civil suitsPersonal injury lawyersLiability insurance companiesHealthcare providers

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Amount unknown

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Protects injured individuals, including low-income plaintiffs, from being penalized in court simply because they have health insurance or government assistance (like Medicaid) that negotiates lower medical rates.
Ensures that wrongdoers are held fully accountable for the full retail cost of the harm they cause, rather than benefiting from the victim's health insurance discounts.
Maximizes the potential financial recovery for injured plaintiffs, providing a stronger safety net to help them recover from severe accidents or medical malpractice.
Could lead to higher liability insurance premiums (like auto insurance) for everyone, disproportionately impacting low-income drivers who already struggle to afford mandatory coverage.
May result in plaintiffs receiving a windfall by collecting damages for medical costs they never actually paid or owed, which could be seen as enriching individuals rather than addressing systemic community needs.
Could increase the financial strain on public healthcare systems or municipalities if they are sued for personal injury, diverting taxpayer funds away from essential public services to pay inflated damage awards.

For Conservatives

Upholds the traditional legal principle of the collateral source rule, ensuring that a defendant who causes an injury is held strictly liable for the full market value of the medical services required.
Protects the property rights of plaintiffs by ensuring their personal choice to purchase health insurance does not result in a financial benefit for the negligent party who injured them.
Prevents the court from getting bogged down in complex evidentiary disputes over insurance contracts, government program discounts, and negotiated rates during civil trials.
Forces businesses and their liability insurers to pay artificially inflated "phantom damages" for medical bills that were never actually paid, increasing the cost of doing business and risking job losses.
Encourages frivolous or exaggerated personal injury lawsuits by creating an opportunity for plaintiffs and trial lawyers to profit from the difference between billed amounts and paid amounts.
Distorts the free market reality of healthcare pricing by legally declaring the often-inflated "chargemaster" bill as the "fair and reasonable charge," ignoring the actual market-clearing price negotiated by insurers.

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.