HB 2571
In CommitteeHouse
Evidence of medical expenses
Concerning evidence of medical, hospital, or similar expenses occasioned by an injury.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill prevents plaintiffs in personal injury lawsuits against local governments from using the full billed amount of medical expenses as evidence of damages—instead, only the amount actually paid (e.g., by insurance or out-of-pocket) can be used. It applies to cases in court, mediation, or arbitration.
- In lawsuits or mediation/arbitration against local governments for personal injuries, only the amount actually paid for medical care (not the full billed amount) can be used to prove damages.
- The full billed amount for medical, hospital, or similar services is no longer admissible as evidence of damages in such cases.
- ‘Local government’ is broadly defined to include cities, towns, counties, fire districts, school districts, hospital districts, transportation districts, and other special districts.
- The law applies to both court trials and alternative dispute resolution (like mediation or arbitration) involving claims against local governments.
Who is affected
- Plaintiffs in personal injury lawsuits against local governments — People who sue local governments (like cities, counties, or fire districts) for injuries—this bill changes what medical cost evidence they can use to prove how much they should be paid in damages.
- Local governments (cities, counties, special districts, etc.) — Local government agencies that face lawsuits over injuries—this bill limits the evidence they can be held liable for, potentially reducing the amount they might have to pay in settlements or judgments.
- Insurance providers for local governments — Insurance companies that handle claims for local governments—this bill affects how medical costs are calculated in dispute resolution, possibly lowering payouts.
- Public health programs and their beneficiaries — Medicare and Medicaid programs (and their beneficiaries)—if a plaintiff received care covered by these programs, only the amount those programs actually paid (not the higher billed amount) can be used to calculate damages.
Pro/Con Analysis
Stronger case for concerns
Potential Benefits (3)
Local governments and their insurers may see reduced liability payouts, especially in cases involving government-paid or discounted care (e.g., Medicaid), lowering insurance premiums and fiscal pressure on municipal budgets.
Business & EmploymentIndustryRef: Sec. 1(1)The bill may reduce settlement and litigation costs for local governments, freeing up limited public funds for other services—though this benefit is offset by reduced accountability.
Local GovernmentIndustryRef: Sec. 1(1)Insurance providers for local governments may benefit from lower claim payouts, especially where third-party payers (e.g., Medicaid, Medicare) have already paid the provider at discounted rates, aligning damages with actual cost to payers.
Business & EmploymentIndustryRef: Sec. 1(1)
Potential Concerns (5)
Plaintiffs—especially low- and middle-income individuals—may receive significantly lower compensation for medical costs, even when the full billed amount reflects the true cost of care and the plaintiff remains liable for it (e.g., via unpaid balances or contractual adjustments). This undermines full restitution for actual harm suffered.
HealthcarePeopleRef: Sec. 1(1)The bill restricts plaintiffs’ ability to present full evidence of damages, limiting access to full legal redress and potentially weakening deterrence for negligent conduct by local governments, which undermines accountability.
Rights & LibertiesPeopleRef: Sec. 1(1)By reducing the financial exposure of local governments in injury cases, the bill may weaken incentives for robust safety practices (e.g., in road maintenance, public facilities, or emergency response), potentially increasing long-term public injury risk.
Public SafetyPeopleRef: Sec. 1(1)While not directly housing-related, the bill may indirectly affect low-income households who rely on public infrastructure (e.g., sidewalks, parks, transit) and suffer injury due to poor maintenance—reduced liability may discourage investment in safe public spaces.
HousingLean peopleRef: Sec. 1(1)The bill may reduce transparency around the true cost of care in litigation, making it harder for courts and agencies to assess systemic safety failures and allocate resources appropriately for prevention.
Public SafetyLean peopleRef: Sec. 1(1)
Who Is Most Affected
Low- and middle-income plaintiffs—especially those on Medicaid, uninsured, or underinsured—will likely receive lower compensation despite incurring full market-rate medical costs, worsening financial harm from injury.
Local governments and their insurers benefit from lower liability exposure, particularly in cases where public payers (e.g., Medicaid) have already paid providers at discounted rates, reducing settlement and litigation costs.
Insurance providers for local governments benefit from lower payouts and more predictable claims costs, especially where government health programs have already absorbed costs at reduced rates.
Medicare and Medicaid beneficiaries may be indirectly harmed: while their programs pay providers at discounted rates, plaintiffs may be unable to recover the full value of care received, potentially disincentivizing care-seeking or creating uncollectible balances.
Public health departments and community clinics may face increased uncompensated care if injured patients receive insufficient compensation and remain liable for balances not covered by settlements.