Future Medical Expenses in Personal Injury: How They Are Calculated

## Why Future Medical Expenses Are Critical in Serious Injury Cases

In catastrophic injury cases — spinal cord injuries, TBIs, amputations, severe burns, and birth injuries — future medical expenses dwarf current medical bills. A settlement that fails to account for future care leaves victims unable to pay for needed treatment years down the road. Personal injury law allows victims to recover the present value of all reasonably certain future medical expenses as part of their damages. Properly calculating these costs requires specialized expert testimony and must be done before any settlement is accepted.

In spinal cord injury cases, future medical expenses alone can exceed $3 million over a 40-year lifespan — far more than any initial medical bills.

Life-Care Planners: The Key to Future Medical Damages

Certified life-care planners are the cornerstone of future medical damage claims. These experts — typically nurses or rehabilitation specialists — review all medical records, consult with treating physicians, and produce a comprehensive life-care plan detailing every medical service the victim will require, its frequency, current cost, and projected inflation-adjusted future cost. This document becomes the foundation for the economic damages portion of the trial or settlement demand.

• Retain a certified life-care planner early in the litigation process, not at the last minute
• Ensure the plan accounts for medical cost inflation — historically 5-7% annually
• Obtain treating physician letters confirming future treatment recommendations
• Calculate the present value of future costs using economic expert testimony

Structured Settlements vs. Lump Sums for Future Medical Costs

When future medical expenses are substantial, structured settlements funded through annuities provide tax-advantaged income streams that match anticipated care costs over time. For catastrophic injuries, structured settlements often generate more total dollars than a lump sum due to tax exclusions and compound growth. Your attorney should model both options before accepting any resolution.