Collateral Source Offsets are obligations to make payments on a continuing basis as offsets against claimed elements of loss. A Collateral Source cannot be one that gives rise to a statutory lien in favor of the person providing the payment. The only material condition to continued payment of the offset should be the payment of ongoing maintenance costs. The most common offset item seems to be Social Security Survivor Benefits.

There are references in the statutes to Care and Custodial Care. It would seem that if the provider has any discretion in what and how it will be provided, those would be additional material conditions. The same seems to be true for offsets that might start at some point in the future. Medical Care Collateral Source for Care/Custodial Care is on the list.

Collateral Source Offsets are accessed with 'Offset'. An item of Offset may be selected from the list or entered in the space provide. The components of the offset are

• First payment date
• First payment Amount
• The number of years and months over which payments are to be made. (The system will automatically reduce the period to that of the loss element to which it relates.)
• Ongoing maintenance costs (They will be applied against the first payment amount for a net offset payment.)
• An annual COLA rate to be applied after the first payment year
• Maintenance costs for the Offset during the two years prior to the event of loss.

The period over which an offset will be applied should be the lesser of the expected period of payment for the offset or the loss element.