For injuries that happened on or after April 21, 2025, a Georgia jury can see both the amount your doctor billed and the amount your health insurance actually had to pay. Before this change, the jury usually saw only the full billed price. The new law, O.C.G.A. § 51-12-1.1, limits medical damages to the “reasonable value” of care you actually needed.
What the Law Says
O.C.G.A. § 51-12-1.1, Special damages for medical and healthcare expenses, states in part:
(a) In any civil action to recover damages resulting from injury or death to a person, special damages for medical and healthcare expenses shall be recoverable only as provided in this Code section.
(b) Special damages for medical and healthcare expenses shall be limited to the reasonable value of medically necessary care, treatment, or services, and the amount of such special damages shall be determined by the trier of fact.
(c) If the plaintiff in any such civil action has any form of public or private health insurance, including benefits under a governmental workers’ compensation program, evidence relevant to the determination of the reasonable value of medically necessary care, treatment, or services pursuant to subsection (b) of this Code section shall include both the amounts charged for past, present, or future medical and healthcare expenses and the amounts actually necessary to satisfy such charges pursuant to the insurance contract or the applicable governmental workers’ compensation program, regardless of whether the health insurance has been used, is used, or will be used to satisfy such charges.
Subsection (e) explains the purpose:
(e) It is the intent of the General Assembly that this Code section abrogates the common law collateral source rule to the extent necessary to introduce the evidence described in this Code section; provided, however, that nothing in this Code section shall be construed or applied to prevent the court from issuing appropriate jury instructions to clarify the role of collateral source payments and to prevent potential jury confusion regarding the effect of collateral source payments on the plaintiff’s recovery.
Section 9(b) of the bill that created this law says when it applies:
(b) Sections 6 and 7 of this Act shall apply only with respect to causes of action arising on or after the effective date of this Act, and any prior causes of action shall be governed by prior law.
You can read the full statute on the Georgia General Assembly’s official code site. The 2025 changes come from Senate Bill 68.
In Plain English
“Special damages” is the legal term for money losses you can add up, like medical bills. This law controls how a jury decides the value of your medical care in an injury case.
Before 2025, Georgia followed the “collateral source rule.” A collateral source is someone other than the defendant who pays part of your loss, such as your health insurer. Under the old rule, the jury could not hear that your insurer paid your bills. The jury saw the full billed amount. If a hospital billed $50,000 but your insurer settled the bill for $12,000, the jury still saw $50,000. Critics called the $38,000 gap “phantom damages.” Supporters said the defendant should not benefit from insurance you paid for.
SB 68 changed this for new cases. Now, if you have any kind of health insurance, the jury hears two numbers. One is the amount charged. The other is the amount “actually necessary to satisfy” the bill under your insurance plan. This is true even if you never used your insurance for the treatment. The jury then decides what the “reasonable value” of your care was. The statute does not say the jury must use the lower number. It says both numbers are evidence.
The law also targets “letters of protection.” A letter of protection is a deal where a doctor treats you now and agrees to be paid from your settlement later. Under subsection (d), the other side can now demand a copy of that letter, an itemized and coded bill, and the name of anyone who bought the medical debt and the price paid. They can also ask who referred you to that doctor.
Two protections remain for injured people. First, the judge can still tell the jury how insurance payments affect your recovery, so the jury is not confused. Second, subsection (f) says both sides can still challenge whether any bill was reasonable or any treatment was needed.
Timing matters. This section applies only to causes of action arising on or after April 21, 2025, the day the governor signed the bill. If you were hurt before that date, the old collateral source rule still applies to your case.
Example
Keisha is hurt in a car crash in Savannah on June 10, 2025. She goes to the emergency room and later has knee surgery. The hospital and surgeon bill a total of $64,000. Keisha has health insurance through her job. Under her plan, the providers accept $19,500 as payment in full.
At trial, the jury hears both numbers: $64,000 charged and $19,500 needed to satisfy the bills. The jury decides the reasonable value of her care. It might pick $19,500, $64,000, or something in between. The judge also instructs the jury on how to treat the insurance payments.
If Keisha’s crash had happened on April 1, 2025, the old rule would apply. The jury would likely hear only the $64,000 figure.
Key Points to Remember
- Medical damages are limited to the reasonable value of care you actually needed.
- If you have health insurance, the jury can hear both the billed amount and the amount your plan actually had to pay.
- This is true even if you did not use your insurance.
- Letters of protection and medical debt sales are now open to discovery.
- The judge can still instruct the jury about how insurance payments affect your recovery.
- The new rule applies only to injuries that happened on or after April 21, 2025.
Related Georgia Laws
- Georgia’s Rule on Arguing a Dollar Value for Pain and Suffering
- No Cap on Compensatory Damages in Georgia
- Georgia Hospital Lien Law
- Bifurcated Trials in Georgia Injury Cases
- Georgia’s Seat Belt Evidence Law
- Damages in Georgia Injury Cases
- Calculating Damages
Official Sources
- Official Code of Georgia Annotated – Georgia General Assembly – search for section 51-12-1.1
- Senate Bill 68 (2025) – Section 7 creates O.C.G.A. § 51-12-1.1; Section 9 sets the effective date
- Summary of General Statutes Enacted (2025)
This page is general legal information, not legal advice. Laws change and every case is different. Talk to a licensed Georgia attorney about your situation.