Methodological Considerations for Proper Life Care Plan Valuation

Trevino, Gene A.  2013. “Methodological Considerations for Proper Life Care Plan Valuation.”  The Earnings Analyst, 13: 63-72.


In catastrophic injury cases the injured party will often have extensive medical and support needs that are detailed with associated costs in a Life Care Plan. For the purposes of litigation, this stream of future costs is usually calculated to present value by a pecuniary damages expert. Four important elements of this present value process are examined in this article with suggested methodological considerations to help insure that the determined present value will provide sufficient funds to cover the projected costs in the Life Care Plan. The four elements to be examined and discussed are: medical price growth indexes, interest rates, securities, and structured settlements.


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