An amount equal to the sum of (i) 50% of the benefits provided for lost wages or private or governmental disability income programs, which have been paid, or which have become payable to the injured person by any other person, corporation, insurance company or fund in relation to a particular injury, and (ii) 100% of the benefits provided for medical charges, hospital charges, or nursing or caretaking charges, which have been paid, or which have become payable to the injured person by any other person, corporation, insurance company or fund in relation to a particular injury, shall be deducted from any judgment in an action to recover for that injury based on an allegation of negligence or other wrongful act, not including intentional torts, on the part of a licensed hospital or physician; provided, however, that:
2-1205.Reduction in amount of recovery.
Article II. Civil Practice · Part 12. Post-Trial · Not amended since adoption on record · Last verified July 20, 2026
In one sentenceSection 2-1205 lets a licensed hospital or physician sued for negligence reduce the plaintiff's judgment by outside benefits already paid for the same injury, capped at half the judgment.
Full Text of 735 ILCS 5/2-1205
(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, lien, 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;
(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; and
(5) There shall be no reduction for charges paid for medical expenses which were directly attributable to the adjudged negligent acts or omissions of the defendants found liable.
Plain-English Summary
This reduction applies only to judgments against a licensed hospital or physician in an action based on negligence or another wrongful act -- not an intentional tort.
From that judgment, the court deducts 50% of any lost-wage or disability benefits already paid or payable to the injured person from another source, plus 100% of medical, hospital, or nursing and caretaking charges already paid or payable from another source, for that same injury.
Several conditions guard against overreach: the defendant must apply within 30 days; the reduction doesn't apply where someone has a subrogation, lien, or other recoupment right against those benefits; the total reduction can't exceed 50% of the judgment; and the plaintiff's damages get increased by any insurance premiums or direct costs paid for that coverage in the two years before the injury, or to be paid in the future. There's also no reduction for medical charges directly caused by the defendant's own negligent acts.
Frequently Asked Questions
Who can use the judgment reduction under Section 2-1205?
Only a defendant who is a licensed hospital or physician, sued for negligence or another wrongful act, not an intentional tort.
What benefits get deducted from the judgment?
50% of lost-wage or disability benefits, plus 100% of medical, hospital, or nursing and caretaking charges, already paid or payable to the plaintiff from another source for that injury.
Is there a deadline to ask for this reduction?
Yes, the application must be made within 30 days.
Can this reduction wipe out the judgment entirely?
No, the reduction can't exceed 50% of the total judgment.
Does the plaintiff get anything back for insurance premiums paid?
Yes, the damages awarded are increased by premiums or direct costs the plaintiff paid in the two years before the injury, or will pay in the future, for that coverage.
Amendment History
(Source: P.A. 84-7.)
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 rule illinoismedical malpractice judgment reduction illinoisdouble recovery offset illinoisreduce judgment insurance benefits illinois