North Carolina has a strong legal foundation for the collateral source rule. This means a plaintiff’s receipt of benefits for his or her injury or disability from collateral sources (those other than the defendant) generally isn’t admissible.
Courts in this state have invoked the collateral source rule to exclude evidence of workers’ compensation benefits, medical expenses paid by an employer insurance benefit, and sick leave pay.
The idea is that jurors shouldn’t be swayed to award less just because the victim had insurance. Typically, the only way courts will allow collateral source evidence to be admitted in tort cases is when it is offered for a legitimate purpose. As the American Bar Association notes, North Carolina hasn’t taken a position on write-downs and write-offs. Each state has its own guidelines when it comes to the collateral source rule. The question in the recent Delaware Supreme Court case of Smith v. Mahoney was whether the collateral source rule is applicable when Medicaid pays for an injured party’s medical expenses.