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CCJL Blog

CCJL Blog

Party-line vote kills phantom damages fix

Tuesday, March 29, 2011

Despite the sponsor's effort to find common ground with the bill's critics, Democrats on the Senate Local Government Committee today sided with trial lawyers and against doctors, families and Colorado businesses to kill House Bill 1106 on a 3-2 party-line vote.

Presented to overturn a bizarre 4-3 decision by the Colorado Supreme Court in November 2010, HB 1106 clarified how medical costs should be calculated in personal injury cases.  The court's majority found that injured plaintiffs were entitled to "billed" medical costs -- even when the billed amount greatly exceeded the amount ultimately paid.  A survey by Colorado Civil Justice League of recent cases found that billed amounts sometimes exceeded the paid amount by two, four or, in one case, eight times.



After explaining the bill, sponsor Sen. Ellen Roberts (R-Durango) immediately presented an amendment which would ensure that juries could consider both billed and paid amounts and determine fair compensation.

Doctors testified that failure to pass HB 1106 will increase their insurance premiums.  Likewise, Colorado drivers can expect to see an increase in liability insurance which now must cover the actual cost of treatment plus billed amounts that were never owed and never paid.

Voting to kill the bill were committee chair Sen. Joyce Foster (D-Denver), as well as Sen. Jeanne Nicholson (D-Black Hawk) and Sen. Irene Aguilar (D-Denver).  Voting to pass the bill and to overturn the court's decision were Sen. Roberts and Sen. Bill Cadman (R-Colorado Springs).

In the end, however, it appeared that the curious assignment of the bill by Senate President Brandon Shaffer (D-Longmont) to the Local Government Committee was a favor to the trial lawyer lobby which apparently was not certain it could defeat the bill in the Senate Judiciary Committee, where civil law bills are typically heard.

CCJL appreciates the hard work of bill sponsors Rep. Bob Gardner (R-Colorado Springs) and Sen. Roberts (R-Durango), as well as the support for HB 1106 from our allies and members in the medical and business community.
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