In Mississippi, a defendant may not have his damages reduced because of amounts plaintiff receives from independent sources like insurance, workers’ compensation, or Medicaid. Walmart Stores, Inc. v. Frierson, 818 So. 2d 1135 (Miss. 2002); Brandon HMA, Inc. v. Bradshaw, 809 So. 2d 611 (Miss. 2001).  These decisions upheld verdicts in trials in which plaintiffs established medical damages by introducing the full face amount of the bills issued by health care providers in excess of the amounts Medicaid and Medicare actually paid, and plaintiffs were not responsible for the excess.

The Court has upheld this rule, known as the “collateral source rule” in multiple cases.  In the case of Burr v. Mississippi Baptist Med. Ctr, the court held that “compensation or indemnity for the loss received by plaintiff from a collateral source, wholly independent of the wrongdoer, as from insurance, cannot be set up by the defendant in mitigation or reduction of damages.”  Mississippi Baptist Med. Ctr. 909 So.2d 721, 728 (Miss. 2005).  Also see Geske v. Williamson, “The rule applies only when the compensation is for the same injury for which damages are sought”.  Williamson945 So.2d 429, 433 (Miss. Ct. App. 2006)  In that case, the trial court had admitted evidence of health insurance and workers’ compensation benefits for a separate and distinct injury than the injuries at issue. The “collateral source rule” also applies to private insurance, Medicare, and Medicaid and has also been applied to a victim’s rights fund which paid a portion of the decedent’s funeral expenses. Gatlin v. Methodist Medical Ctr., 772 So.2d 1023, 1031 (Miss. 2000).

The Mississippi Supreme Court has held that there is no reason to treat Medicaid or Medicare benefits any differently than private insurance payments which are subject to the collateral source rule. Wal-Mart Stores, Inc. v. Frierson, 818 So.2d 1135, 1140 (Miss. 2002); Brandon HMA, Inc. v. Bradshaw, 809 So.2d 611, 618-20 (Miss. 2001). The collateral source rule applies to both gratuitous medical care and gifts received by the plaintiff. Brandon HMA, 809 So.2d at 618. see Collateral Source Rule and Exceptions, American Bar Association, Litigation Section.