Greer v. Advantage Health, 880 N.W.2d 786

Plaintiff recovered a verdict for personal-injury damages that included past medical expenses.
Defendants asserted contractual liens and relied on negotiated insurance discounts that reduced the plaintiff’s actual medical-payments.
The Court of Appeals held that negotiated discounts (the reduced amounts and the discounts themselves) qualify as "benefits received or receivable from an insurance policy" and therefore fall within the statutory collateral-source exclusion in MCL 600.6303(4) when a contractual lien is exercised.
The Court of Appeals concluded the exclusion is not limited to the amount actually paid under the lien but applies to all "benefits paid or payable" and "received or receivable."
The Michigan Supreme Court vacated its prior order granting leave to appeal and denied the applications for leave to appeal, concluding review was not warranted; Justice Zahra concurred separately to urge legislative amendment.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether negotiated insurance discounts and the discounted amounts are excluded from the statutory collateral-source rule under MCL 600.6303(4) when a contractual lien is exercised	Discounts are not "benefits paid or payable" or "received or receivable" as contemplated for exclusion; plaintiff should not recover amounts never owed or paid	Discounts and the reduced payments are "benefits received or receivable from an insurance policy" and, when a contractual lien is exercised, are excluded from the collateral-source rule — exclusion covers all benefits "paid or payable"	Court of Appeals held discounts and reduced payments fall within MCL 600.6303(4)'s exclusion; Michigan Supreme Court denied further review, concurrence urged legislative amendment to clarify statute

Nasser v. Auto Club Ins. Ass'n, 435 Mich 33 (1990) (discusses statutory abrogation of common-law collateral-source rule)
Tebo v. Havlik, 418 Mich 350 (1984) (describes common-law collateral-source rule history and principles)
Propeller Monticello v. Mollison, 58 U.S. (17 How) 152 (1854) (early U.S. recognition of collateral-source rule)
Greer v. Advantage Health, 305 Mich App 192 (2014) (Court of Appeals holding that insurance discounts are collateral-source benefits excluded when contractual lien is exercised)
Heinz v. Chicago Rd. Investment Co., 216 Mich App 289 (1996) (discusses statutory collateral-source evidence and reductions)
Gypsum Carrier, Inc. v. Handelsman, 307 F.2d 525 (9th Cir. 1962) (addresses punitive/deterrent rationales for tort damages)