In personal injury cases, the Collateral Source Rule is intended to help promote full justice and compensation from a defendants wrongdoing. The rule basically does not allow for an award to be reduced by a judge or jury just because the plaintiff received benefits from other sources, such as health insurance. The rationale behind the collateral source rule is that a defendant should not benefit from the plaintiff’s investment in private health insurance. In some states, the collateral source rule prohibits the admission of evidence that would inform the jury that the plaintiff has been compensated by a different source other than the defendant (i.e. health insurance).
[...] collateral source rule states: “If an injured person receives compensation for injuries from an independent source [...]