A personal injury settlement is usually a one-time event. Once you accept it, you cannot go back for more money if your medical needs grow. This is why knowing how North Carolina professionals calculate the future cost of medical care during your case can help you plan ahead
Medical experts and the life care plan process
Future medical costs start with an evaluation by your treating physicians. They assess the full scope of your injuries and outline the care you will likely need going forward.
From there, a certified life care planner often steps in. This expert reviews your records, talks with your doctors and builds a detailed document called a life care plan.
A life care plan maps out the anticipated care needs related to your injury over your remaining lifetime. It can include future surgeries, physical therapy, prescriptions, wheelchairs and even home modifications.
Forensic economists and the present-value calculation
Once the life care plan shows what you will need, a forensic economist what those needs will cost in today’s dollars. They then apply a discount rate that reflects what a safe investment could earn over time. By weighing expected medical inflation against that return, the economist arrives at a present-value figure, which is the amount you would need today to cover all future care.
Your age, life expectancy and injury severity all shape this calculation. A younger person with a permanent condition will typically have much higher projected costs than someone closer to retirement.
Insurance company tactics and the value of legal guidance
It is important to understand that insurance companies have their own process for evaluating future care cost projections. They retain independent medical experts to examine the life care plan and offer a second opinion on the scope and cost of recommended treatments.
These reviews may also involve a closer look at your medical history. If you had pre-existing conditions before the accident, the insurer may question whether certain future needs connect directly to the injury or stem from a prior issue.
Legal counsel can help you with preparing for these reviews by working alongside your medical team and economists. An attorney can also review the full range of damages in your claim so that no detail slips through during negotiations.