Mo. legislators seek to limit awards for medical expenses

Last edited 2:27 p.m., May 2, 2016

The Missouri House of Representatives last week passed to the governor a bill designed to change how medical expenses are paid in court cases.

Senate Bill 847 would reduce court awards for medical damages to the amount paid for the treatment, instead of a lawyer's established value of the treatment. The measure also allows insurance payments to be credited from court awards.

SB 847 essentially would prevent a patient from receiving more in costs for treatment than the patient actually paid for the treatment.

"What we're trying to do is stop a windfall for trial attorneys," said Rep. Joe Don McGaugh, R-Carrollton, who handled the bill in the House.

He said lawyers now inflate damages to earn themselves a larger cut, which needs to be curtailed.

Rep. Mike Colona, a lawyer and Democrat representing the city of St. Louis, said the measure is designed to save the insurance industry money.

"This is insurance industry welfare," he said. "I asked a question in committee to the insurance company lobbyist. I said, ‘Let's get this straight: if this passes, not only will verdicts be lower, but it means your client, the insurance industry, will be lower?'

“‘Well yes representative, that's right,’ [the lobbyist said].”

The measure cleared the House 97-57, which is short of the 109 votes that would be required to override a veto.