Case Updates
Delaware Supreme Court concurs that plaintiff cannot collect phantom medical expenses
June 12, 2015
The Supreme Court of Delaware upheld the Superior Court’s ruling that the collateral source rule does not apply to Medicare write-offs. The Court ruled that the amount paid by Medicare, not the amount billed by the provider, establishes the reasonable value of the medical services provided.
U.S. Chamber files amicus brief
January 08, 2015
In its brief, the U.S. Chamber urged the Supreme Court of Delaware to uphold the Superior Court’s ruling that the plaintiff may not recover phantom medical expenses, amounts that are greater than the Medicare payment. It explained how the Superior Court’s decision provided the plaintiff with full compensation, rather than overcompensation. The amount paid by Medicare, not the amount billed by the provider, establishes the reasonable value of the medical services provided. The plaintiff’s arguments concerning medicare taxes, differential treatment of tort plaintiffs, and “net loss” are incorrect.
Finally, the brief argued that the impact that a reversal of the Superior Court’s decision would have is difficult to oversate. A reversal would result in a vast and needless windfall annually to plaintiffs and their attorneys, at the expense of the liability-insurance-buying public.
Gideon A. Schor, William B. Chandler III, and Bradley D. Sorrels of Wilson Sonsini Goodrich & Rosati, P.C. represented the U.S. Chamber of Commerce as counsel to the U.S. Chamber Litigation Center in this case.