Negotiated Discounts are Collateral Source, MN High Court Holds

Minnesota case law summary by Attorney Richard Clem: negligence, collateral source, Minn. Stat. 548.251.

Swanson v. Brewster. Negligence, collateral source, Minn. Stat. 548.251

Negotiated discount amounts--amounts a plaintiff is billed by a medical provider but does not pay because the plaintiff's insurance provider negotiates a discount on the plaintiff's behalf--are "collateral sources" for purposes of the collateral source statute, Minn. Stat. 548.251.

Justices Meyer and Page dissented, taking the position that the amounts were not "payments" for purposes of the statute, since nobody had been paid. 784 N.W.2d 264 (Minn. June 30, 2010).

Please see the original opinion for the court's exact language.


Richard P. Clem is an attorney and continuing legal education (CLE) provider in Minnesota. He has been in private practice in the Twin Cities for 25 years. He has a J.D., cum laude, from Hamline University School of Law in St. Paul and a B.A. in History from the University of Minnesota. His reported cases include: Asociacion Nacional de Pescadores a Pequena Escala o Artesanales de Colombia v. Dow Quimica de Colombia, 988 F.2d 559, rehearing denied, 5 F.3d 530 (5th Cir. 1993), cert. denied, 510 U.S. 1041 (1994); LaMott v. Apple Valley Health Care Center, 465 N.W.2d 585 (Minn. Ct. App. 1991); Abo el Ela v. State, 468 N.W.2d 580 (Minn. Ct. App. 1991).

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