The Phantom Damages Elimination Act Exposed: Difference between revisions

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The '''Phantom Damages Elimination Act''' was adopted by ALEC's [https://www.sourcewatch.org/index.php/ALEC_Civil_Justice_Task_Force Civil Justice Task Force] at the 2011 Annual Meeting, approved by the Board of Directors October, 2011. (Accessed January 30, 2017).
{{Infobox ALEC Bills
|bill_title          = The Phantom Damages Elimination Act
|date_introduced    =
|date_reviewed      =
|date_finalized      = September 12, 2016
|date_amended        = October 1, 2011
|date_accessed      = May 1, 2018
|type                = Model Resolution
|status              = Final
|task_forces        = Civil Justice
|keywords            = Lawsuit Reform
|notes              =
}}


==ALEC Bill Text==
<h1>The Phantom Damages Elimination Act</h1>
<u>Section 1</u> {Title} This Act may be known as the Phantom Damages Elimination Act.
<p align="center"><strong>Section 1. {Title}.</strong> This Act may be known as the Phantom Damages Elimination Act.</p>
 
<p><strong>Section 2. {Purpose}.</strong> The purpose of this section is to prevent compensatory damage awards for medical expenses from including amounts that the claimant has not and will not pay for such medical care or treatment.</p>
<u>Section 2</u> {Purpose} The purpose of this section is to prevent compensatory damage awards for medical expenses from including amounts that the claimant has not and will not pay for such medical care or treatment.
<p><strong>Section 3. {Recovery of Medical or Health Care Expenses}.</strong>  In an action to recover damages resulting from death or injury, the damages that may be recovered by a claimant for reasonable and necessary health care services or treatment received shall include only:</p>
 
<p>(A) amounts actually paid by or on behalf of the claimant; and</p>
<u>Section 3</u> {Recovery of Medical or Health Care Expenses} In an action to recover damages resulting from death or injury, the damages that may be recovered by a claimant for reasonable and necessary health care services or treatment received shall include only:
<p>(B) amounts actually necessary to satisfy unpaid charges still due and payable to the health care service provider for which the claimant or a third party on behalf of the claimant has a legal obligation to pay.</p>
 
<p>[<strong>OPTIONAL:  Section 4. {Excessive Unpaid Charges}.</strong>  Unpaid charges under Section 3(b) shall not exceed amounts customarily accepted by health care service providers for the health care services or treatment at issue in satisfaction of their bills.]</p>
(A) amounts actually paid by or on behalf of the claimant; and
<p><strong>Section 5. {Inadmissibility of Gross Amount Billed}.</strong>  The gross amounts of a claimant’s medical bills are inadmissible as evidence of damages where such gross amounts are not reflective of the actual amounts paid or that remain actually owed to satisfy those bills.</p>
 
<p><strong>Section 6. {Rule of Construction}.</strong>  This Act is in addition to, and does not otherwise affect, any other limitation on damages.</p>
(B) amounts actually necessary to satisfy unpaid charges still due and payable to the health care service provider for which the claimant or a third party on behalf of the claimant has a legal obligation to pay.
<p><strong>Section 7. {Effective Date}.</strong>  This Act is effective upon enactment and shall apply to any action filed on or after the effective date of this Act.</p>
 
<p>Given the nuances in state law discussed above, legislators should contact the ALEC Civil Justice Task Force to evaluate the law of their states when developing legislation.</p>
<u>Section 4</u> {Excessive Unpaid Charges} Unpaid charges under Section 3(b) shall not exceed amounts customarily accepted by health care service providers for the health care services or treatment at issue in satisfaction of their bills.]
<p align="center"><em>Approved by ALEC Board of Directors October 2011.</em></p>
 
<u>Section 5</u> {Inadmissibility of Gross Amount Billed} The gross amounts of a claimant’s medical bills are inadmissible as evidence of damages where such gross amounts are not reflective of the actual amounts paid or that remain actually owed to satisfy those bills.
 
<u>Section 6</u> {Rule of Construction} This Act is in addition to, and does not otherwise affect, any other limitation on damages.
 
<u>Section 7</u> {Effective Date} This Act is effective upon enactment and shall apply to any action filed on or after the effective date of this Act.
 
Given the nuances in state law discussed above, legislators should contact the ALEC Civil Justice Task Force to evaluate the law of their states when developing legislation.

Revision as of 02:58, 2 May 2018

Model Bill Info
Bill Title The Phantom Damages Elimination Act
Date Finalized September 12, 2016
Date Amended October 1, 2011
Date Accessed May 1, 2018
Type Model Resolution
Status Final
Task Forces Civil Justice
Keywords Lawsuit Reform

The Phantom Damages Elimination Act

Section 1. {Title}. This Act may be known as the Phantom Damages Elimination Act.

Section 2. {Purpose}. The purpose of this section is to prevent compensatory damage awards for medical expenses from including amounts that the claimant has not and will not pay for such medical care or treatment.

Section 3. {Recovery of Medical or Health Care Expenses}. In an action to recover damages resulting from death or injury, the damages that may be recovered by a claimant for reasonable and necessary health care services or treatment received shall include only:

(A) amounts actually paid by or on behalf of the claimant; and

(B) amounts actually necessary to satisfy unpaid charges still due and payable to the health care service provider for which the claimant or a third party on behalf of the claimant has a legal obligation to pay.

[OPTIONAL: Section 4. {Excessive Unpaid Charges}. Unpaid charges under Section 3(b) shall not exceed amounts customarily accepted by health care service providers for the health care services or treatment at issue in satisfaction of their bills.]

Section 5. {Inadmissibility of Gross Amount Billed}. The gross amounts of a claimant’s medical bills are inadmissible as evidence of damages where such gross amounts are not reflective of the actual amounts paid or that remain actually owed to satisfy those bills.

Section 6. {Rule of Construction}. This Act is in addition to, and does not otherwise affect, any other limitation on damages.

Section 7. {Effective Date}. This Act is effective upon enactment and shall apply to any action filed on or after the effective date of this Act.

Given the nuances in state law discussed above, legislators should contact the ALEC Civil Justice Task Force to evaluate the law of their states when developing legislation.

Approved by ALEC Board of Directors October 2011.