In all cases on account of bodily injury or death or physical damage to property, based on negligence, or product liability based on any theory or doctrine, to which Section 2-1205 does not apply, the amount in excess of $25,000 of the benefits provided for medical charges, hospital charges, or nursing or caretaking charges, which have been paid, or which have become payable by the date of judgment to the injured person by any other insurance company or fund in relation to a particular injury, shall be deducted from any judgment. Provided, however, that:
2-1205.1.Reduction in amount of recovery.
Article II. Civil Practice · Part 12. Post-Trial · Last amended 1995 · Last verified July 20, 2026
The official Illinois Compiled Statutes database prints two separate versions of this section — a Public Act later held unconstitutional alongside the text as it read before that amendment; both are shown below.
In one sentenceSection 2-1205.1 lets defendants in general negligence and product-liability cases -- outside 2-1205's hospital-and-physician rule -- deduct collateral medical payments above $25,000 from the judgment.
Full Text of 735 ILCS 5/2-1205.1
735 ILCS 5/2-1205.1. With the changes made by P.A. 89-7 (held unconstitutional)
(1) Application is made within 30 days to reduce the judgment;
(2) Such reduction shall not apply to the extent that there is a right of recoupment through subrogation, trust agreement, contract, lien, operation of law or otherwise;
(3) The reduction shall not reduce the judgment by more than 50% of the total amount of the judgment entered on the verdict; and
(4) The damages awarded shall be increased by the amount of any insurance premiums or the direct costs paid by the plaintiff for such benefits in the 2 years prior to plaintiff's injury or death or to be paid by the plaintiff in the future for such benefits.
735 ILCS 5/2-1205.1. Without the changes made by P.A. 89-7 (held unconstitutional)
In all cases on account of bodily injury or death or physical damage to property, based on negligence, or product liability based on strict tort liability, to which Section 2-1205 does not apply, the amount in excess of $25,000 of the benefits provided for medical charges, hospital charges, or nursing or caretaking charges, which have been paid, or which have become payable by the date of judgment to the injured person by any other insurance company or fund in relation to a particular injury, shall be deducted from any judgment. Provided, however, that:
(1) Application is made within 30 days to reduce the judgment;
(2) Such reduction shall not apply to the extent that there is a right of recoupment through subrogation, trust agreement, contract, lien, operation of law or otherwise;
(3) The reduction shall not reduce the judgment by more than 50% of the total amount of the judgment entered on the verdict; and
(4) The damages awarded shall be increased by the amount of any insurance premiums or the direct costs paid by the plaintiff for such benefits in the 2 years prior to plaintiff's injury or death or to be paid by the plaintiff in the future for such benefits.
Plain-English Summary
This section fills the gap Section 2-1205 leaves open: it applies to bodily-injury, death, or property-damage cases resting on negligence or product liability, whenever 2-1205's rule for licensed hospitals and physicians doesn't already cover the case.
Only the amount above $25,000 in medical, hospital, nursing, or caretaking charges that another insurance company or fund has already paid, or owes, by the date of judgment gets deducted from the award.
The same kind of guardrails apply as in 2-1205: a 30-day deadline to apply for the reduction, no reduction where a subrogation, trust, contract, or lien-based recoupment right exists, a cap of 50% of the total judgment, and an increase in damages for insurance premiums or direct costs the plaintiff paid, or will pay, for that coverage.
The code preserves two versions of this section side by side: one reaching "product liability based on any theory or doctrine," tied to Public Act 89-7, and an earlier version limited to "product liability based on strict tort liability."
Frequently Asked Questions
How is Section 2-1205.1 different from Section 2-1205?
Section 2-1205 targets negligence claims against a licensed hospital or physician. Section 2-1205.1 covers the broader run of negligence and product-liability cases that 2-1205 doesn't reach.
How much of a collateral medical payment gets deducted under this section?
Only the amount above $25,000 in medical, hospital, nursing, or caretaking charges already paid or payable by another insurance company or fund.
Is there a deadline to seek this reduction?
Yes, an application must be made within 30 days to reduce the judgment.
Can this deduction wipe out the plaintiff's judgment?
No, it's capped at 50% of the total judgment entered on the verdict.
Why does this section appear in two different versions?
The code carries both a version reaching product-liability claims "based on any theory or doctrine" and an earlier version limited to "strict tort liability," tied to Public Act 89-7.
Amendment History
With the changes made by P.A. 89-7 (held unconstitutional)(Source: P.A. 89-7, eff. 3-9-95.)
Without the changes made by P.A. 89-7 (held unconstitutional)(Source: P.A. 84-1431.)
Source & verification. Section text and amendment history are
reproduced verbatim from the Illinois Compiled Statutes, published by the
Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026.
· Official source
Also known as: collateral source offset illinois product liabilityreduce judgment 25000 medical illinoisnegligence judgment reduction illinois insurance