New York Second Department Addresses Future Medical Collateral Source Offset and Affordable Care Act in Case of First Impression.

In a case of first impression, the Second Department held that a jury’s award of future medical costs can be offset by what the plaintiff would have been covered for under the Affordable Care Act (ACA) HAD he obtained coverage. CPLR 4545 deals with collateral source offsets and states that any amount awarded for future medical expenses should be reduced by any amount that “were or will, with reasonable certainty, be replaced or indemnified from a collateral source.” This prevents double recovery by a plaintiff. 

In Liciaga, the plaintiff was uninsured. The jury found he was entitled to future medical expenses, and the defendant sought to reduce the award by the amount the plaintiff would incur should he obtain coverage under the ACA. The plaintiff argued this would force him to obtain health insurance. The court ruled the ACA itself requires uninsured people to obtain the coverage and that the language of CPLR 4545 states that the offset is for those collateral sources that are “available” to the plaintiff. 

Practitioners should be sure to request a collateral source hearing for any uninsured plaintiffs with future medical expenses. 

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