Future Medical Costs in Personal Injury Cases
Future medical costs are typically projected in a life care plan prepared by a CLCP, then reduced to present value by a forensic economist. Methodology combines treating-team recommendations, peer-reviewed duration literature, and geographically matched cost data.
Who prepares the projection
Certified Life Care Planners (CLCPs) prepare the itemized plan. Forensic economists reduce the plan to present value using appropriate discount and growth rates.
Inputs to the projection
Core inputs include treating team recommendations, peer-reviewed duration literature, local provider cost quotations, and published rate data (Medicare, usual-and-customary compilations) (Centers for Medicare & Medicaid Services, n.d.).
Typical categories
Categories include routine and specialty medical care, diagnostic testing, therapies, medications, durable medical equipment with replacement intervals, home modifications, transportation, and attendant care.
Reducing to present value
The plan's annual costs are reduced to present value using a discount rate matched to the projection horizon and a growth rate reflecting medical cost inflation (U.S. Bureau of Labor Statistics, n.d.). Methodology is documented with sensitivity analysis.
Frequently Asked Questions
How far into the future do projections extend?
Projections extend across the claimant's expected life expectancy, drawing on published life tables (Arias et al., 2025) and any adjustments supported by the record.
Are collateral sources deducted?
Deduction depends on the jurisdiction's collateral source rule. Some jurisdictions require offset; others do not.
Related
References
- Centers for Medicare & Medicaid Services. (n.d.). Physician fee schedule. U.S. Department of Health and Human Services. cms.govGovernment
- U.S. Bureau of Labor Statistics. (n.d.). Consumer Price Index: Medical care [Fact sheet]. U.S. Department of Labor. bls.govGovernment
- Arias, E., Xu, J., & Kochanek, K. D. (2025). United States life tables, 2023. National Vital Statistics Reports, 74(6), 1-63. National Center for Health Statistics. doi.orgGovernment
- International Academy of Life Care Planners. (2022). Standards of practice for life care planners (4th ed.). International Association of Rehabilitation Professionals. member.aanlcp.orgOrganization
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