What Is the Collateral Source Rule in Georgia?
Short answer: The collateral source rule says the person who hurt you generally cannot pay less because another source, like your health insurance, already covered part of your losses. Georgia still follows the rule, but a 2025 law created an exception for medical expenses in claims arising on or after April 21, 2025.
Definition
“Collateral” means separate or independent. A collateral source is a payment that does not come from the at-fault party, such as health insurance, medical payments coverage, disability benefits or paid sick leave. Under the rule, those payments do not reduce your damages, and the jury traditionally does not hear about them.
How it works in Georgia
- Common law rule. The rule comes from Georgia court decisions. In Denton v. Con-Way Southern Express (1991), the Georgia Supreme Court struck down a statute that let juries hear about collateral benefits.
- The 2025 exception. SB 68 created O.C.G.A. § 51-12-1.1, which lets the jury consider both the amounts charged for your medical care and the amounts actually needed to pay those charges, including through health insurance. This narrows the old rule for medical expenses.
- The accident date matters. The exception applies to causes of action arising on or after April 21, 2025, and covers medical and healthcare expenses. Other benefits may still follow the old rule.
Example
Two drivers are hurt in similar Gwinnett County crashes, one in 2024 and one in June 2025. Each has $40,000 in billed charges that their health plans satisfied for $16,000. In the 2024 case, the jury generally hears only the billed charges. In the 2025 case, the jury may hear both numbers.
Why it matters for your claim
- The date of your accident can change how your medical damages are proven.
- The rule does not stop your own insurer from seeking repayment from your recovery.
Read more: The collateral source rule in Georgia personal injury cases: what you need to know.
Related terms
Frequently Asked Questions
Does Georgia still have the collateral source rule?
Yes, but for claims arising on or after April 21, 2025, evidence of what your health insurance pays for medical care can come in on the question of reasonable value.
If my health insurance paid my bills, can I still claim them?
Yes. For newer claims, the jury decides their reasonable value and may consider both the billed charges and the insurance amounts.
Is the collateral source rule the same as subrogation?
No. The collateral source rule limits what the at-fault party can use to lower your damages. Subrogation is your insurer’s right to be repaid from your recovery.
Browse the full Georgia personal injury glossary
Questions about how this applies to your accident? Call 888-BIG-GUNN or request a free case review. There is no fee unless we win.
This is general information about Georgia law, not legal advice for your situation.
