LRB-3778/1
PJH:jld
2015 - 2016 LEGISLATURE
November 24, 2015 - Introduced by Representatives Kuglitsch, Jacque, Craig,
Gannon, Kitchens, Knodl, Kremer, T. Larson, Murphy, Rohrkaste,
Sanfelippo, Spiros, Steffen, Thiesfeldt, Tittl, Weatherston and R. Brooks,
cosponsored by Senators Kapenga, Gudex, Lasee, LeMahieu, Stroebel and
Wanggaard. Referred to Committee on Judiciary.
AB539,1,2 1An Act to amend 908.03 (6m) (bm); and to create 901.057 of the statutes;
2relating to: collateral source payments.
Analysis by the Legislative Reference Bureau
This bill affects the admissibility of evidence regarding collateral source
payments in certain civil actions.
Under current law, as a general rule in a personal injury case, evidence may not
be admitted regarding payments made to compensate a person for injury from
persons other than the defendant (collateral source payments). Current law makes
an exception and allows evidence of collateral source payments to be admitted for
medical malpractice cases and cases involving a personal injury sustained as the
result of negligence by a long-term care provider. A separate provision prohibits the
admission of evidence of collateral source payments for the purpose of rebutting the
presumption that billing statements and invoices that are patient health care
records state the reasonable value of the health care services provided to an injured
person in all other matters.
The bill allows, for the purpose of determining the reasonable value of any type
of personal injury claim or of any action seeking payment for uninsured or
underinsured motorist coverage, including the reasonable medical expenses
involved in those claims, the fact finder to consider evidence of collateral source
payments and evidence of the injured person's obligations of subrogation or
reimbursement resulting from those collateral source payments. Under the bill,
evidence of amounts paid or incurred by the claimant in recovering a collateral
source payment is not admissible. The bill allows the admission of evidence of

collateral source payments for the purpose of rebutting the presumption that billing
statements and invoices that are patient health care records state the reasonable
value of the health care services provided to the injured person.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB539,1 1Section 1. 901.057 of the statutes is created to read:
AB539,2,15 2901.057 Collateral source payments and rights of subrogation. In
3actions for damages caused by personal injury or wrongful death that are not subject
4to s. 893.55 (7) or 893.555 (8), or seeking payment based on uninsured or
5underinsured motorists coverage, evidence of any compensation for bodily injury
6received from a source other than the defendant to compensate the claimant for the
7injury or to pay for medical expenses incurred by the claimant is admissible for the
8purpose of determining the reasonable value of the claim, including the reasonable
9value of the injured person's medical expenses. Evidence of the claimant's
10obligations of subrogation or reimbursement resulting from payments made by a
11source other than the defendant to compensate the claimant for injury is admissible.
12Evidence of amounts paid or incurred by the claimant in recovering a payment from
13a source other than the defendant is not admissible. Admission of evidence under
14this section does not limit the substantive or procedural rights of persons who have
15claims based upon subrogation or lien.
AB539,2 16Section 2. 908.03 (6m) (bm) of the statutes is amended to read:
AB539,3,217 908.03 (6m) (bm) Presumption. Billing statements or invoices that are patient
18health care records are presumed to state the reasonable value of the health care
19services provided and the health care services provided are presumed to be
20reasonable and necessary to the care of the patient. Any party attempting to rebut

1the presumption of the reasonable value of the health care services provided may not
2present evidence of payments made or benefits conferred by collateral sources.
AB539,3 3Section 3. Initial applicability.
AB539,3,44 (1) This act first applies to actions filed on the effective date of this subsection.
AB539,3,55 (End)
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